Union Commerce Minister Piyush Goyal has made a relief announcement for Indian textile exporters. He completely rejected the apprehensions of the industry that India’s textile industry will lag behind in competition due to America’s deal with Bangladesh. Goyal has made it clear that India will also get the facility to sell its products (textile products) in America without any tariff like Bangladesh. This statement of the Commerce Minister has come at a time when the opposition and the industry were beginning to fear that the facility provided to the neighboring country could affect India’s exports.
Condition of use of American cotton for zero tariff
Piyush Goyal said that under the proposed framework, if Indian manufacturers buy raw material (such as cotton, cotton or man-made fiber) from the US and export the finished cloth back to the US, then there will be ‘zero reciprocal tariff’ on it. America has given exactly this facility in the agreement signed with Bangladesh on 9 February. Goyal said, “Our framework agreement is being drafted now. When the interim agreement is finalised, you will clearly see it in the ‘fine print’”.
Counterattack on opposition’s claims: The stake is worth 7.5 billion dollars
Opposition leader Rahul Gandhi had alleged in Parliament that Bangladesh had got a better deal than India. Speaking on this, Commerce Minister Goyal said that Rahul Gandhi should apologize to the MSME sector and weavers as they are spreading lies. According to a report by SBI Research, America imports textiles worth about $ 7.5 billion (about Rs 62 thousand crore) annually from both India and Bangladesh. In such a situation, it is very important for India to have equal conditions.
The complete picture will be clear in March
Despite the interim trade agreement between India and America, experts believe that it may take time till March to clear the situation on the final tariff. Detailed details of the trade agreement are expected to be revealed by March. The Trump administration had imposed a huge tariff of 50% on Indian goods from August 2025. But, after the phone conversation between Prime Minister Narendra Modi and US President Donald Trump on February 2, it was reduced to 18%.
Trade target of 500 billion dollars
The bilateral trade agreement between the two countries, on which formal negotiations began in February 2025, aims to increase bilateral trade from the current $191 billion to $500 billion by 2030. The Government believes that removing non-tariff barriers and reducing taxes will help achieve this goal.
