The United States has agreed to give Bangladesh zero tariffs on certain textile and apparel goods based on using U.S. cotton and man-made fibre inputs. Following worries from India’s textile sector, Indian Commerce Minister Piyush Goyal said India will receive the same facility. Indian garment and textile exporters will also benefit from similar tariff relief. Bangladesh imports $16.1 billion of textile inputs yearly, with $3.1 billion coming from India. It buys large amounts of cotton from India and other countries to feed its 500 spinning mills. Bangladesh exported $50.9 billion in garments in 2024, with $7.4 billion going to the U.S. India exported $16 billion in garments that year, about one-third to the U.S. Indian exporters believe the U.S.-Bangladesh deal will not immediately change trade dynamics since Bangladesh mainly serves the EU market duty-free. However, to use the U.S. zero-tariff deal, Bangladesh must shift to using U.S. cotton and build new fabric-processing units. Indian yarn exporters note Bangladesh’s mills face a crisis. India imports about five lakh bales of U.S. cotton annually and is a major customer of premium American PIMA cotton. Goyal assured Indian exporters of equal access to the U.S. market as Bangladesh exporters. The U.S. tariff on Indian goods is 18 percent, down from higher rates for Bangladesh due to the deal. Experts warn Indian exporters face questions about whether India's government will cut import duties on U.S. cotton or allow duty-free imports to help garment makers use American cotton. Indian exporters also worry about U.S. cotton price rises and how the U.S. will verify the cotton content in garments to qualify for tariff relief. Both India and Bangladesh benefit only on reciprocal tariffs using U.S. cotton, not on basic duties. The Indian garment sector hopes the government will address these practical issues soon to maximize benefits.