US to Offer Zero Duty on Indian Textiles like Bangladesh
The Ministry of Commerce has clarified that India will receive a 'zero duty' facility from the United States, similar to Bangladesh. Commerce Minister Piyush Goyal rejected claims made by Rahul Gandhi in Parliament, confirming that Indian textiles made from US cotton will not attract any taxes. Additionally, 90–95% of agricultural products are excluded from this agreement, safeguarding Indian farmers' interests.
This is welcome news for the Indian textile industry and exporters, who had long been concerned that special concessions given to Bangladesh in the US market could put Indian businesses at a disadvantage. The Ministry of Commerce has now indicated that India will also receive zero-duty benefits similar to Bangladesh.
What is the New 'Zero Duty' Deal with the US?
According to the Ministry of Commerce, negotiations between India and the US have determined that Indian exporters will receive the same benefits as Bangladesh. This means if Indian textile manufacturers buy cotton from the US, process it into textiles, and export back to the US, no import duties will apply.
This arrangement is considered a 'reciprocal tariff' benefit. The government believes this step will make Indian apparel more competitive in US markets. Previously, Indian exporters feared that Bangladesh’s heavy tariff exemptions would reduce their orders, but the proposed deal largely removes this concern.
Parliament Debate: Piyush Goyal vs Rahul Gandhi
The trade deal sparked political debate in Parliament. Opposition leader Rahul Gandhi alleged that Bangladesh received better terms in the trade agreement compared to India. Commerce Minister Piyush Goyal strongly refuted these claims, emphasizing that India will receive the same zero-tariff benefits for US cotton-based textiles as Bangladesh.
Goyal further clarified that the framework of the agreement is still being prepared, and once the interim agreement is finalized, all conditions will be made public in the 'fine print'.
Agricultural Products Protected
On February 9, 2026, the US and Bangladesh issued a joint statement reducing tariffs on Bangladeshi products to 19% and granting zero-duty access for US cotton-based textiles. This initially created uncertainty for India, which the government has now clarified.
Goyal assured that approximately 90–95% of agricultural products produced in India are excluded from this agreement, ensuring that US agricultural products will not flood the Indian market and affect local farmers.