Zero tariff textiles exports to U.S. possible for India: Goyal
India's Commerce Minister Piyush Goyal confirmed on February 14, 2026, that Indian textile exporters will have access to zero-tariff exports to the U.S. under a "yarn-forward" principle. This arrangement ensures parity with benefits recently granted to Bangladesh in its own trade deal with the United States.
Key Provisions of the Zero-Tariff Access
- The "Yarn-Forward" Rule: To qualify for zero duty, Indian garments must be manufactured using raw materials (cotton or yarn) imported from the United States.
- Interim Trade Agreement: The specific details of these concessions are being included in the "fine print" of the India-U.S. interim trade deal, which is expected to be formally signed by mid-March 2026.
- Broad Tariff Reductions: Beyond the zero-tariff conditional access, standard reciprocal tariffs on Indian textiles and apparel have already been reduced from 50% to 18% following high-level negotiations in early February 2026.
Impact on the Textile Industry
- Competitive Parity: The deal addresses industry concerns that Bangladesh would gain a significant advantage after its February 9, 2026 agreement with the U.S., which also featured zero-duty access for products made with American inputs.
- Export Targets: Goyal noted that these trade deals could help double India's current textile exports from ₹5 lakh crore to ₹10 lakh crore ($60 billion to $120 billion approximately).
- Domestic Protection: The Minister emphasized that the deal is "calibrated" to protect domestic interests; roughly 90-95% of India's agricultural produce remains outside the ambit of the U.S. trade deal to safeguard local farmers.
Broader Trade Context (2026)
The India-U.S. trade negotiations gained significant momentum following a February 2, 2026 call between Prime Minister Narendra Modi and U.S. President Donald Trump. This reset followed a period of high tension where the U.S. had imposed tariffs of up to 50% on Indian goods since August 2025.
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