Union Commerce and Industry Minister Piyush Goyal on Thursday said India would secure tariff benefits identical to those extended to Bangladesh under its trade arrangement with the United States, dismissing Leader of Opposition Rahul Gandhi’s charge that
Dhaka had received a more favourable deal.
In a sharp response that spilled beyond Parliament, Goyal accused Rahul Gandhi of “spreading another lie” by claiming Bangladesh had gained an edge over India in trade concessions.
“Just as Bangladesh has a facility that if raw material is purchased from America, then if you process it and make cloth and export it, it will be available at zero reciprocal tariff. India also has the same facility and India will also get it,” Goyal said.
“When the interim agreement is finalised, then you will get to see this in the fine print,” he said. He maintained that the proposed arrangement would significantly boost Indian exports and directly benefit farmers, MSMEs, fishermen and traditional artisans.
“Indian farmers will also get the benefit that many such products will be exported to the US, the EU, Switzerland, the UK, Norway and Australia in large quantities. The Rs 5 lakh crore that we export today will become an export of Rs 10 lakh crore,” he said.
Goyal went on to demand an apology from Rahul to “the farmers of India, fishermen, workers working in MSME and Vishwakarmas” for allegedly misleading them. Party leader Pawan Khera accused the minister of inadvertently admitting that Indian cotton could be displaced if US raw material was incentivised under a zero reciprocal tariff mechanism. “Goyal in Blunder-land,” he said.
As per him — ‘Just as Bangladesh has a facility that if raw material is purchased from America, then if you process it and make cloth and export it, then it will be available at zero reciprocal tariff. India also has the same facility and India will also get it.’ Basically, what he means is that soon Indian cotton will be redundant in Indian markets. And Indian cotton farmers will be languishing,” Khaira said.
The sharp exchange underscores mounting political sensitivity around the proposed interim trade arrangement with the US, particularly in the textiles and agriculture sectors.
While the government projects the agreement as a pathway to expanded market access and export growth, the Opposition has raised concerns about possible adverse impacts on domestic producers if import-linked processing incentives tilt sourcing patterns.
With negotiations still underway, the fine contours of the reciprocal tariff mechanism — including rules of origin, value addition thresholds and sectoral coverage — remain to be finalised.
