Union Minister of Commerce and Industry Piyush Goyal said the U.S. has limited cotton production, its exports are only $5 million, and for India, the target is $50 billion. File
| Photo Credit: Sushil Kumar Verma
India will get concessional duty access for garments made using American yarn and cotton under its trade agreement with the U.S., similar to the benefits currently provided to Bangladesh, Commerce and Industry Minister Piyush Goyal said on Thursday (February 12, 2026).
The United States will reduce reciprocal tariffs on Bangladeshi goods to 19%, but garments attract zero duty only if made with U.S. cotton and man-made fibres. A Bangladeshi garment now faces a 31% levy (12% for most favoured nation plus 19% reciprocal), and if it uses U.S. fibres, then duty falls to 12%.
“Bangladesh ko jo Mila hai, wo Bharat ko bhi milne wala hai final agreement me (Whatever Bangladesh has got, India will also get the same in the final agreement,” Mr. Goyal told reporters in Delhi.
If an Indian company procures yarn forward and cotton forward from the U.S., manufactures garments, and re-exports to the U.S., those garments will also receive duty-free access in America, just like Bangladeshi firms, he pointed out.
That is there in that U.S.-Bangladesh agreement, and “it will be in our agreement also”, he said, adding that it will not have any impact on Indian cotton farmers.
The U.S. has limited cotton production, its exports are only $5 million, and for India, the target is $50 billion, the minister said.
India and the U.S. have finalised a framework for the first phase of the bilateral trade agreement. It is likely to be implemented in March.
These remarks are important, as Leader of Opposition Rahul Gandhi, on Wednesday (February 11, 2026), alleged that the India-U.S. interim trade deal was a “wholesale surrender”, with India’s energy security handed over to America and farmers’ interests compromised.
Meanwhile, addressing a Medtech, innovation and startup event here, Mr. Goyal said the free trade agreements finalised by India will provide huge market access at concessional duties to the domestic medical devices industry.
In some free trade agreements (FTAs), certain Indian medical devices would also get duty concessions, he added.
“We are opening developed markets through the nine FTAs, which cover 38 countries with rich people and high per capita incomes,” the minister said.
He suggested looking for a site to set up in states like Rajasthan and Uttar Pradesh to establish a medtech zone just like AMTZ in Andhra Pradesh.
Mr. Goyal added that the National Industrial Corridor Development Corporation (NICDC) can look at reserving 50 -100 acres for medical device units in the country.
Published – February 12, 2026 03:21 pm IST
