New Delhi:Special Correspondent Arun Sharma

India’s textile and apparel sector could soon gain a significant competitive advantage in the American market, with Commerce and Industry Minister Piyush Goyal indicating that New Delhi is negotiating tariff concessions comparable to those enjoyed by Bangladesh under a proposed trade arrangement with the United States.


Calling the framework “calibrated and industry-friendly,” Goyal said the agreement would strike a balance between export expansion and protection of sensitive domestic sectors.


Zero or Concessional Duty Route Under Consideration
According to the minister, the proposal under discussion would allow:
Zero or reduced tariffs on exports processed in India using raw materials imported from the U.S.
Targeted benefits for the textile and garment sector
Safeguards to protect sensitive domestic industries, including farmers
A balanced structure to prevent adverse impact on the Indian market
“If raw materials are imported from the U.S., processed in India, and then exported, such products may qualify for zero or concessional duty access,” Goyal explained, emphasizing that domestic interests would not be compromised.


Level Playing Field with Bangladesh
Trade analysts note that Bangladesh currently enjoys preferential tariff treatment in the U.S. market, giving its garment exports a price advantage. If India secures similar concessions, Indian exporters could significantly boost shipments to the U.S., narrowing the competitive gap.


The textile and apparel sector is one of India’s largest employment generators and a major contributor to export earnings. Enhanced market access could lead to higher production, investment inflows and job creation.


Domestic Safeguards Assured
Goyal reiterated that the agreement would be “carefully calibrated” to ensure that domestic producers — particularly farmers and small manufacturers — are not adversely affected. Only those product categories unlikely to disrupt the Indian market would be considered for concessions.


He added that India has consistently protected its national interests in trade negotiations with the United States, the European Union and other global partners.


Boost to ‘Make in India’ and Bilateral Ties
Trade observers believe the proposed arrangement could strengthen India-U.S. economic ties while providing momentum to the ‘Make in India’ initiative.


With negotiations reportedly in the final stages, industry stakeholders are now awaiting a formal announcement that could reshape India’s textile export landscape and enhance its global competitiveness.