India to receive same garment benefits as Bangladesh under U.S. trade pact: Goyal

India will gain garment duty benefits similar to Bangladesh under a U.S. trade pact, according to Commerce Minister Piyush Goyal.

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.