US to Give Yarn, Cotton Benefits to India, as with B’desh: Goyal
India’s textile sector not a looser: Matching Relief l No impact on cotton farmers
Quick data point: As things stand today
US total cotton exports $5b vs India’s $50b textile exports to US aim going forward
Maintain government of India
Indian farmers interests completely protected in trade deals (Win-Win)
Interesting fact
95% of India’s farm produce outside US deal ambit
Tactful strategy
Calibrated imports of some agri products to benefit poultry, farm sector
Future forward
₹5 lcr exports to double on FTAs
All in all
India-US final trade pact will have clause to the effect; no extra benefit to Bangladesh. The overhang on textile scrips largely removed close on the heels of US-Bangladesh recent trade agreement.
ET Bureau
“India to get concessional duty access for garments made using American yarn and cotton under its trade agreement with the US, similar to the benefits currently provided to Bangladesh (India’s textile exports don’t loose any competitive advantages), once the proposed interim trade agreement with Washington is signed in the coming weeks, commerce and industry minister Piyush Goyal said making it clear on Thursday. He also said US businesses are now looking at India as a trusted partner.
“Whatever Bangladesh has got, India will also get in the final agreement,” said Goyal on the sidelines of a startup event.
Indian textile is in a good place as the sun shines with back to back two major trade FTAs with EU (dubbed as “mother of all deals” & defining deal with the US).
India and the US have finalised a framework for the first phase of the bilateral trade agreement (BTA) that’s likely to be implemented in March 2026.
Indian companies that procure yarn from the US to make garments and re-export these back will get duty-free access, exactly like Bangladeshi companies, he categorically said. That’s part of the US-Bangladesh agreement and “will be in our agreement also,” Goyal said, adding that it will not have any impact on Indian cotton farmers and textile exports.
The reality is
The US has limited cotton production; its exports amount to $5 billion. For India, the target is $50 billion, he noted. “Right now, our framework agreement is being made/in the works. When the interim agreement is finalised, then you will get to see this in the fine print,” said the minister.
India is in a sweet spot
Make hay while the sun shines the government has done its bit; ball has been thrown/throwing opportunities to the industry to make it happen.
So far so good!
Credits: Source based information also using ET dated 13-02-2026. The content “edited in parts”.
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