Mint Explainer | India vs Bangladesh: Who really wins in the US textile tariff reset?

Subscribe to enjoy similar stories. As the US resets tariff terms with key Asian suppliers, India and Bangladesh are emerging with sharply different textile outcomes. On paper, Bangladesh appears to have secured the bigger win.

Dhaka has been offered a zero reciprocal tariff on garments made using US-origin cotton and man-made fibres, a concession India does not have. But that advantage comes with strict sourcing conditions. Since Bangladesh’s garment sector is not built around fibre-based production, the benefit may be difficult to use at scale.

India, despite facing similar headline tariff levels, may gain more in practice. Its textile industry is vertically integrated and its market access is not tied to US-origin inputs, giving exporters greater flexibility. Mint explains how the two frameworks compare, and why India could emerge with more durable advantages.

Under the US–Bangladesh joint statement of 9 February, Washington agreed to cut reciprocal tariffs on Bangladeshi goods to 19% and provide zero reciprocal duty on garments made using US-origin cotton and man-made fibres. In practical terms, Bangladeshi garments that normally face a 12% US most-favoured-nation (MFN)tariff would attract a total duty of 31% unless they use US fibres, in which case the duty would fall back to 12%. On paper, that looks like a meaningful concession.

India’s textile exports to the US stood at $10.32 billion in FY25, compared with $7.4 billion from Bangladesh, even though Bangladesh is the world’s second-largest garment exporter. Because Bangladesh’s garment industry is not structured around fibre production. Less than one-third of its garments are made starting from fibre.