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Informist, Thursday, Feb. 12, 2026

 

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--Minister Goyal: India to get cotton-related benefits in US-Bangladesh deal 
--Minister Goyal:Cotton import for processing at nil duty under US trade deal 
--Goyal on cotton import in US deal: US' cotton scale lower than India's 
--Goyal on cotton import under trade deal:To not hurt Indian cotton farmers 
--Minister Goyal: Indian agri goods to benefit from US, EU, UK trade deals 

 

NEW DELHI – India will get the benefits related to cotton processing and export under the US' trade deal with Bangladesh, Commerce and Industry Minister Piyush Goyal said Thursday. Under the Bilateral Trade Agreement with the US, there will be a  provision for India to import cotton and yarn for processing from the US at nil duty and further export to the US at zero-reciprocal tariff, same as that in the US-Bangladesh trade deal, Goyal added.   

 

This provision for cotton and yarn import under the trade deal is unlikely to hurt Indian farmers as the US' scale of cotton production is lower than that of India, Goyal told media. There will be no quota limit attached to the provision, he said. 

 

New Delhi has kept 90% of India's farm products--like dairy, poultry, rice, wheat, corn, millets, fruits, ethanol, tobacco--out of the US trade deal, Goyal said. "And we have opened market access for some import-dependent products in a calibrated manner," Goyal said. On the other hand, Indian farmers are set to benefit extensively from India's trade deal with developed regions like the US, UK, and the European Union, Goyal said.

India and the US recently concluded a tranche of the broader Bilateral Trade Agreement, under which, the US has removed the penal tariff of 25% on Indian goods and has committed to cut reciprocal tariff to 18% from 25%. Washington had imposed a 50% tariff on Indian goods in August, which included 25% reciprocal tariff and 25% punitive tariff for New Delhi's strategic partnership with Moscow. 

 

Both sides are currently engaged in formalising the document of the interim trade deal and are likely to sign it by mid-March. The trade deal is set to lift a large chunk of uncertainties on India's exports growth and external sector stability. The US is India's largest export destination, with outbound shipments worth $86.51 billion in 2024-25 (Apr-Mar), and imports worth $45.69 billion.  End 

 

US$1 = INR 90.65

 

Reported by Krity Ambey

Edited by Tanima Banerjee

 

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