India Likely to Secure Bangladesh Style Textile Tariff Relief, Says Piyush Goyal
Government says amended White House fact sheet aligns with joint statement; concessional duty access for garments expected to boost exports while safeguarding farmers.
New Delhi, Feb 13 : The Centre on Thursday clarified that recent amendments to the White House fact sheet on the proposed interim trade framework between India and the United States are consistent with the understandings outlined in the earlier joint statement, easing concerns triggered by perceived discrepancies.
Ministry of External Affairs spokesperson Randhir Jaiswal said both countries will now move toward implementing the framework and finalising the interim agreement.
Commerce Minister Piyush Goyal announced that India is poised to receive concessional duty access for garments manufactured using American cotton and yarn a benefit currently available to Bangladesh. He explained that once the agreement is formalised, apparel produced with US origin raw materials could qualify for zero reciprocal tariffs.
The statement comes amid industry apprehensions after Bangladesh secured a 19% reciprocal tariff from the US along with exemptions for garments made from American cotton and synthetic fibres. India’s reciprocal tariff stands at 18%, prompting exporters to closely watch whether Bangladesh would gain a competitive pricing advantage.
Goyal emphasised that the proposed agreement has been carefully structured to protect domestic interests. He noted that nearly 90–95% of products cultivated by Indian farmers have been kept outside the scope of the trade deal, ensuring that sensitive agricultural sectors remain shielded.
According to the minister, only items already being imported and unlikely to harm local producers have been selectively opened for trade. He added that the arrangement could create new export avenues for processed agricultural goods across markets where India has free trade agreements, including the US, the European Union, Switzerland, and Norway.
The government believes the pact strikes a balance between safeguarding vulnerable sectors and expanding opportunities for labour intensive industries such as textiles and apparel. Goyal’s clarification is expected to reassure exporters who feared losing ground to regional competitors.
Meanwhile, trade research body GTRI observed that Bangladesh’s tariff advantage may be limited, as the exemption applies only to the portion of garments made from US origin inputs typically a small share of total imports.
