Union Commerce and Industry Minister Piyush Goyal on Thursday (February 12, 2026) made a big claim regarding the trade deal between America and India. He said that America can impose zero tariff on Indian textiles. This statement of the Union Minister is a sign of great relief, due to which India’s textile sector can benefit a lot in the future.

India’s textile exporters will benefit – Goyal

The news of relief has come to light after the US administration led by President Donald Trump made major changes in the fact sheet of the India-US trade deal and relaxed some of the conditions. In this regard, Union Minister Piyush Goyal said that after the signing of the final agreement between India and America, India’s textile sector can also get the facility of zero tariff like Bangladesh. The trade agreement between America and Bangladesh had earlier created a lot of challenges for the Indian textile industry, but after America has imposed zero tariff on Indian textiles, Indian textile exporters will benefit greatly from it.

Comment on Congress regarding trade deal

Union Commerce Minister Piyush Goyal also made a sharp comment on the allegations made by Leader of Opposition in Lok Sabha and Congress MP Rahul Gandhi during the budget session of Parliament regarding the US-India trade deal. In fact, Rahul Gandhi said that the trade deal that India has made with America shows that PM Modi has completely surrendered to Donald Trump. Countering Rahul’s statement, Piyush Goyal said that Rahul Gandhi spread a big lie in the Parliament that the trade deal with America has benefited Bangladesh more than India.

He said that Bangladesh has got the facility under the agreement with America that if the raw material is purchased from America and the complete cloth is prepared from it and it is exported, then there will be no tariff on that goods. India can also get the same facility.

The harsh attitude of Mohammad Yunus government against India has received a big blow. In the budget presented by the Government of India on Sunday (February 1, 2026), strong announcements have been made for the textile industry, due to which the backbone of Bangladesh i.e. its textile industry will be badly affected. The recent free trade agreement with the European Union is also a big blow to the textile industry of Bangladesh.

On Sunday (February 1, 2026), Finance Minister Nirmala Sitharaman presented the budget for the financial year 2026-27, in which she has announced silk production, machinery support, handloom and handicraft programs and skill development in the textile sector.

Bangladesh is the world’s second largest textile exporter
The budget also emphasizes on a strong policy for the labour-intensive textile sector, which aims to promote self-reliance, employment, innovation and global competitiveness. Bangladesh’s textile industry has always been a challenge for India. Bangladesh is the world’s second largest exporter of readymade garments, while India is sixth. In the year 2024, Bangladesh had exported textiles worth $52.9 billion, while India had exported a total of textiles, apparel and handicrafts worth $37.7 billion.

How will Bangladesh be shocked by India’s budget?
Ever since Mohammad Yunus’ government came to power in Bangladesh, its attitude towards India has been a bit harsh. At the same time, Bangladesh’s closeness with Pakistan has also started increasing. In such a situation, India has also started defining bilateral relations strategically, a reflection of which has been seen in the budget. India is preparing to make the textile market attractive. Not only will the budget deal a blow to Bangladesh’s textile industry, the free trade agreement with the EU will also deal a blow to it.

FTA is also a big blow for Bangladesh
After China, Bangladesh has the highest share in the European Union’s $263 billion textile market. It has captured 21 to 22 percent of the market. He has duty free access here, due to which his business is so big. At the same time, India’s share is only 5 to 6 percent, which means it is able to sell only $ 8 billion worth of clothes here because 9 to 12 percent tax is levied on it. However, after FTA, the tax will become zero, which will increase India’s textile business here and this is sure to give a blow to the textile industry of Bangladesh.

This time in the neighboring country Bangladesh, the uproar is not on the roads, but in the textile industry, which is considered the backbone of its economy. The increasing import of duty-free yarn from India has caused huge losses to the local spinning mills there. The situation is so bad that about 12,000 crore rupees worth of cloth is rotting in the warehouses and mill owners have warned that if the yarn coming from India is not stopped, the entire industry may come to a standstill from February 1. But the crisis which is a threat to Bangladesh can become a golden opportunity for India. As instability increases, Bangladeshi garment makers will have to import more yarn from India, which will greatly benefit Indian spinning mills. Also, if the supply chain is affected, global brands like Zara, H&M and GAP can shift their orders to India. This can be a big gamechanger for textile hubs like Tirupur, Ludhiana and Surat. The question is – will India be able to convert this opportunity into becoming a global textile leader?

After the announcement of Donald Trump, the US has implemented 25 percent extra tariff on India, after which India has made a dhanw plan to break this tariff. Actually, Trump’s tariff is going to affect India’s textile industry. India has prepared its plan to deal with it.

The government has planned to contact 40 countries to save the textile industry and promote clothes exports. A government official gave this information on Wednesday (August 27, 2025). The initiative includes major countries such as Britain, Japan, South Korea, Germany, France, Italy, Spain, Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turks, United Arab Emirates (UAE) and Australia.

America’s tariff will not affect

The official said, ‘India will work towards becoming a reliable, quality, durable and innovative textile products in these 40 markets. Indian Mission and Export Promotion Councils (EPCs) will play an important role in this. Although India already exports clothes to more than 220 countries, these 40 countries together import global clothes and apparel of about $ 590 billion. India’s share in this import is currently five-six percent.

The official said that this initiative of special contact with these countries in such scenario is going to be an important step towards market diversification. The additional 25 percent fee imposed on Indian products by the US has come into effect from August 27.

Expectation of adverse effects on exports of these areas

Trump’s tariff is expected to affect the export of areas such as textiles, gems and jewelery, leather, fish, chemicals and machinery. Export damage to the US alone can be $ 10.3 billion.

Mithileshwar Thakur, General Secretary of the Apparel Export Promotion Council (AEPC), said, ‘The 25 percent fee rate had already been accepted by the industry, but now India’s competitiveness has declined by 30-31 percent compared to countries like Bangladesh, Vietnam, Sri Lanka, Cambodia and Indonesia due to additional 25 percent fee. With this, the Indian textile industry is almost out of the American market.

Demand for immediate financial relief from government

He demanded immediate financial relief from the government, so that the industry could overcome the crisis. He also said that the textile industry is now exploring the possibilities of compensation for losses through trade agreements with Britain and EFTA countries. Under the government’s scheme, EPC will identify estimation of export markets and products with high demand.

Apart from this, he said that clothing product clusters like Surat, Tirupur, Bhadohi will be linked to international occasions. Also, under the ‘Brand India’ campaign, participation in international exhibitions and business fairs will also be ensured. Free trade agreements and trade agreements can help make Indian products competitive. In such a situation, this strategic effort for India can become an opportunity to strengthen its position in the global textile export market.

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