The people of India were not able to gather complete information about the trade deal with America that America also made a trade deal with Bangladesh. On the surface, it is clearly visible in this deal that India has more benefit from the deal with America than Bangladesh, because the tariff on India is 18 percent and the tariff on Bangladesh is 19 percent.

In this trade deal with Bangladesh, America has played such a subtle game, which is no less than a problem for the farmers of India and the textile industry of India. Now everyone is more or less aware of the trade deal that America has made with India. The doubts that Indian farmers had about agricultural products have been removed by first Piyush Goyal and then Agriculture Minister Shivraj Singh Chouhan and have said that this deal with America does not include any agricultural product in the production of which India is self-reliant.

Higher tariff on Bangladesh

The US-Bangladesh trade deal says that the tariff on Bangladesh will now be 19 percent. At one time it had reached 37 percent. If Bangladesh makes clothes made from American cotton and artificial fibres, then America will not impose any tax on purchasing them. This will be purchased from Bangladesh at 0 percent tariff only. This second clause of the trade deal between America and Bangladesh is the biggest concern of India because Bangladesh is the second largest exporter of textiles in the world after China.

Donald Trump played in ‘clothes’

Bangladesh buys 98 percent of its total cotton requirements for making clothes from other countries. Apart from Brazil, India, America and other countries are also among those who sell cotton to Bangladesh, but due to better quality, Bangladesh has been purchasing more than 20 percent of its requirement from India. Bangladesh is the largest buyer of yarn made in India in the whole world. A report says that Bangladesh had purchased yarn worth about $1.47 billion from India in the year 2024-25 and India has also been selling more than 40 percent of its cotton exports to Bangladesh only.

Bangladesh used to be able to meet only 7 to 10 percent of its needs from America, but now the subtle game that has happened in this trade deal and under which America has said that it will make the clothes made in Bangladesh from American cotton duty free, then it is natural that the priority of Bangladesh will change. Instead of buying cotton from India, Bangladesh will buy cotton from America because it will not have to pay duty on the clothes made from it and this is the biggest problem for India’s textile industry.

Bangladeshi cloth will be sold more than India

India will not only be hit in the export of cotton but India will also be hit doubly in the export of clothes. Bangladesh already dominates the textile market. If it buys cotton from America and makes clothes and sells it to America, then the clothes made by it will be cheaper than those made in India because there will be 18 percent tariff on the clothes made in India whereas there will be no tariff on the clothes made in Bangladesh. Then the American market will prefer the clothes of Bangladesh instead of India, which is not beneficial in any way for the Indian textile industry.

Since Mohammad Yunus took command after the overthrow of Sheikh Hasina, relations between India and Bangladesh have increased. Trade has reduced and there is a kind of uncertainty among the businessmen of both the countries, but if there is a change of power in Bangladesh after the general elections, then it is possible that a new business relationship can be established between India and Bangladesh, which will be in the interest of both the countries and through which the textile industry of both the countries can reach more markets of the world.

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India’s Textile and Apparel sector is the backbone of the economy and is considered the second largest sector after agriculture in terms of employment. The industry has big expectations from Budget 2026, especially when India has signed many FTAs, but their full benefits are not yet visible at the ground level. Textile sector contributes significantly to GDP, exports and industrial production and provides direct employment to about 4.5 crore people. About 80% of its production comes from MSMEs, which are struggling with high input costs, complex compliance, slow refunds and skill gaps. The industry expects Budget 2026 to focus on monetizing FTAs, faster refunds, working capital support, man-made fibres, technical textiles and infrastructure investment. With skill development, digital tools and R&D, India can move from cost-based model to capability-led growth. Now the question is – will Budget 2026 be able to make India a global textile hub?