India-US Zero Duty Garment Deal Raises Concerns in Bangladesh

India may secure zero-duty access to the US for garments made from US-origin cotton, potentially reducing Bangladesh’s tariff advantage in the American market.

India exported over US$6.4 billion of raw cotton in FY 2024–25 and imported around 4.13 million bales of US cotton, while Bangladesh remains heavily reliant on imported cotton.

India levies a 12% import duty on cotton, whereas Bangladesh allows duty-free cotton imports, though India benefits from strong domestic cotton availability and an integrated value chain.

About 77% of US fashion brands and retailers sourced from India in 2025, with the trend likely to continue through 2027, intensifying competition in the US apparel market.