Bangladesh-US Trade Deal: Why India's Textile Dominance Remains Strong

• The Bangladesh-US trade agreement offers 0% tariff to Bangladesh for US-sourced cotton/yarn, sparking concerns in India's textile industry.
• Former High Commissioner Veena Sikri dismisses fears, highlighting strict conditions: Bangladesh must buy expensive US cotton (75-76 cents/pound) compared to cheaper Indian cotton (6,200-7,800 rupees/quintal).
• Logistical advantages favor India, with goods reaching Bangladesh in 3-7 days versus 30-45 days from the US, reducing interest and inventory costs.
• Bangladesh sources over 70% of its cotton from India due to cost-effectiveness and compatible supply chains; switching to US cotton requires significant investment and time.
• The 'zero tariff' is not universal across all textile categories, and Bangladesh's commitment to billions in US purchases (energy, agriculture, Boeing) could strain its economy.