A provision in the US–Bangladesh reciprocal trade agreement offering zero duty on select textile and apparel exports from Bangladesh to the US, subject to the use of US-produced cotton and fibre inputs, has raised concerns across India’s textile value chain. The pact, signed on February 9, reduces the reciprocal tariff on Bangladeshi goods to 19 per cent from 20 per cent. Industry executives fear the clause could prompt Bangladeshi manufacturers to pivot away from Indian cotton yarn towards US suppliers, hurting Indian exporters of raw material and finished goods. The US is India’s largest export destination, with textile and apparel shipments of $10.5 billion. Bangladesh is the biggest buyer of Indian cotton yarn, accounting for 45–50 per cent of exports.

Source: The Telegraph February 11, 2026 01:19 UTC