India to also get textile trade benefits like Bangladesh: Piyush Goyal

Like Bangladesh, India is also expected to get zero-tariff access to the United States on garments made using American cotton once the final deal is signed, he said.

While this clause might not be in the interim trade deal framework released by the countries last week, it would be part of the final agreement, he assured.

"Right now, our framework agreement is being made. When the interim agreement is finalised, then you will get to see this in the fine print," he was quoted as saying by Indian media reports.

Goyal's clarification followed opposition leader Rahul Gandhi’s claims of the agreement being a ‘wholesale surrender’ to Trump.

India has already offered duty concessions for imports of US extra-long staple cotton.

Close to a third of textile and apparel shipments from India reach the US market.

India is among Bangladesh's top three sources of importing cotton. But Bangladesh may now shift more towards American cotton, and that will put pressure on Indian cotton traders.

If India manages a Bangladesh-type concession from the United States, it will bring relief to the former’s domestic textile industry.

Fibre2Fashion News Desk (DS)