Bangladesh's Zero-Duty US Access Challenges Indian Textile Exporters

• Bangladesh's zero-tariff access for select garments in the US poses a new challenge for India's textile exporters, despite recent US duty reductions for India.
• The US-Bangladesh Agreement lowers reciprocal tariffs and grants zero-duty access for Dhaka's textile and apparel products made with US-produced cotton.
• This agreement halves the tariff differential between India and Bangladesh from 2% to 1% and could impact India's cotton yarn exports to Bangladesh.
• Indian textile hubs like Tiruppur are urging the government to secure similar zero-duty access for finished garments made with US cotton to remain competitive.
• Bangladesh's ready-made garment exports to the US already significantly outpace India's, and this new advantage could intensify competition.