• Source:PTI
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India-US Trade Deal: Commerce and Industry Minister Piyush Goyal said on Thursday that under the trade deal with the US, India will get preferential tariff access for US yarn and cotton textiles, similar to the exemption currently being given to Bangladesh.

The US will reduce the reciprocal duty on Bangladeshi goods to 19 percent, but only garments made from US cotton and man-made fibres will attract zero duty. Bangladeshi textiles currently attract a 31 percent duty (12 percent for Most Favoured Nation and a reciprocal duty of 19 percent), and if US fibres are used, the duty reduces to 12 percent.

"Bangladesh ko jo Mila hai, wo Bharat ko bhi milne wala hai final agreement me (Whatever Bangladesh has got, India will also get the same in the final agreement," Goyal told reporters as per PTI.

He explained that if an Indian company buys yarn and cotton forward from the US, manufactures fabrics, and re-exports them to the US, those fabrics will also get duty-free access to the US, just like Bangladeshi companies.

This is in the US-Bangladesh agreement, he said, and “it will be in our agreement as well,” adding that it will not affect Indian cotton farmers.

The minister noted that the US has limited cotton production, exporting only US$5 million, while India’s target is US$50 billion.

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India and the US have finalised the framework for the first phase of a bilateral trade deal. It is expected to come into effect in March.

The developments are significant as opposition leader Rahul Gandhi on Wednesday alleged that the India-US interim trade deal is a “total surrender”, handing over India’s energy security to the US and compromising the interests of farmers.

Meanwhile, speaking at an event on medical technology, innovation, and startups, Goyal said that the free trade agreements finalized by India will provide greater market access to the domestic medical device industry at preferential rates.

He added that some Indian medical devices will also receive tax concessions in some free trade agreements (FTAs).

"We are opening developed markets through the nine FTAs, which cover 38 countries with rich people and high per capita incomes," the minister said.

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He suggested finding space in states like Rajasthan and Uttar Pradesh to set up medical technology zones, similar to the AMTZ in Andhra Pradesh.

Goyal said the National Industrial Corridor Development Corporation (NICDC) could consider providing 50-100 acres of land for medical device units in the country.

(With Input From PTI)


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