India’s forthcoming trade agreement with the United States is set to include provisions that will benefit Indian textile and garment exporters, Commerce MinisterPiyush Goyalsaid on Thursday.
The India-US trade deal, expected to be signed next month, will reportedly contain clauses similar to those in the recently concludedBangladesh–US trade arrangement. Under that pact, Bangladesh is allowed to export a limited quantity of textiles and garments to the US at zero reciprocal duty, provided raw materials are sourced from the United States.
The announcement comes amid concerns among Indian garment manufacturers that they could face an 18% tariff disadvantage compared to Bangladeshi exporters following Dhaka’s fresh trade agreement with Washington.
Industry representatives had raised apprehensions that Indian textile exports might lose competitiveness in the crucial US market if similar concessions were not extended to India.
Responding to these concerns, Goyal clarified that India would receive a comparable benefit under its own trade deal with the US. While specific operational details are yet to be disclosed, he indicated that the “fine print” of the agreement will outline the scope and conditions of these provisions.
The United States remains one of India’s largest export destinations, particularly for textiles and ready-made garments. Preferential tariff access can significantly enhance price competitiveness, especially in a sector that operates on tight margins.
If structured effectively, zero reciprocal duty access — even within defined quotas — could help Indian exporters maintain parity with regional competitors and protect market share.
The Bangladesh-US deal links zero-duty access to sourcing raw materials from the US. A similar clause in the India-US agreement could also influence supply chain decisions for Indian manufacturers.
Such provisions may encourage greater integration of Indian exporters into US supply chains, while balancing trade interests between the two nations.
With the agreement expected next month, exporters are closely awaiting clarity on quotas, sourcing conditions, compliance requirements, and implementation timelines.
For India’s textile and apparel sector, which is a major employment generator, the outcome of this trade negotiation could play a crucial role in shaping export competitiveness in one of its most important overseas markets.
The final contours of the India-US trade deal will determine whether Indian exporters can effectively neutralise the tariff edge gained by Bangladesh and sustain their foothold in the US textile market.
