New Delhi, Feb 17 (NationPress) The textile and apparel export industry in India is bouncing back from a challenging phase and is expected to surpass previous performance levels once the nation’s new trade agreements take effect, as stated by industry experts.

Industry representatives have labeled concerns about competition from Bangladeshi exporters, who have secured zero reciprocal tariffs through a trade agreement with the US, as “exaggerated and unfounded”.

“With the US reducing tariffs to 18 percent and India’s Free Trade Agreement (FTA) with the EU providing zero-duty access for textiles and apparel, we anticipate a growth of at least 30-40 percent within the next two years,” emphasized Animesh Saxena, General Secretary of the Garments Exporters and Manufacturers Association.

Recent reports prompted panic in the sector over Bangladesh's perceived advantage with its “zero-tariff benefits” from the US agreement, following New Delhi’s own deal.

Commerce Minister Piyush Goyal reassured the industry, indicating that India is likely to obtain benefits akin to those of Bangladesh, which will become clearer once the interim trade deal's legal text is finalized, expected next month.

“There are inherent conditions that Bangladeshi exporters must adhere to, such as sourcing American cotton for their garment production,” pointed out R. K. Vij, President of the Textile Association (India).

“American cotton is costly, and logistical expenses will further increase the overall price, potentially negating the duty savings,” he added.

Regarding the interests of Indian cotton farmers against imports, industry leaders stated that the government supports them through the minimum support price (MSP) and import duties.

“US cotton won’t dominate the Indian market due to its high cost. Indian cotton remains a more affordable alternative. The imports mainly consist of premium American cotton that is otherwise unavailable in India,” noted an industry leader.

“Additionally, cotton prices are subject to fluctuations in the global market. Current prices may not remain stable,” Vij cautioned.

He also highlighted that India has a competitive advantage over other Asian nations in its trade agreement with the US, which has a reciprocal tariff of 18 percent. By contrast, Bangladesh faces a 19 percent duty, while Vietnam encounters a 20 percent tariff.

Typically, garments are subjected to a 12 percent duty under Washington’s Most Favored Nation (MFN) tariff, resulting in a total duty of 31 percent for Bangladesh and approximately 30 percent for India.

“The main concern previously was the uncertainty surrounding the India-United States trade deal,” admitted Dinesh Babu, Executive Secretary of the Tiruppur Exporters’ Association.

“Now that matters have been clarified and are progressing positively, I believe the future looks promising with all the FTAs with the EU and the UK,” he added.

With the “mother of all trade deals,” India’s global textile and apparel exports currently valued at Rs 3.19 lakh crore, including Rs 62.7 crore to the EU, will enjoy zero-duty access to at least 27 countries.

Industry leaders have also indicated that the details of New Delhi’s trade agreement with Washington will be revealed next month, while the FTA with the EU is expected to come into force in six to seven months.

“This will create a win-win situation for India’s textile and apparel exporters,” Saxena concluded.

From April 2025 to January 2026, India's textile exports saw a decline of (-)2.35 percent, according to data from the Confederation of Indian Textile Industry (CITI). Textile exports dropped by (-)3.68 percent, while apparel exports fell by (-)3.84 percent in January 2026 compared to January 2025, based on the data.