US-Bangladesh Trade Deal: India's Cotton Industry Faces Setback, Exports at Risk

• US and Bangladesh signed a trade deal, reducing tariffs by up to 19% for Bangladeshi goods, with zero tariffs on textiles using American cotton.
• This deal could significantly impact India's cotton exports, as Bangladesh is a major buyer of Indian raw cotton and fabrics.
• Experts estimate India's $1.5 billion cotton export could be affected, with $600-650 million related to raw cotton and yarn.
• Bangladeshi garments will enter the US duty-free, while Indian products face an 18% tariff, increasing competition for India's $3.6 billion textile exports.
• The deal benefits the US by creating a market for its surplus cotton and has led to a decline in Indian textile company shares.