India-US Trade Deal to Boost Cotton Demand, Says Goyal

• The India-US trade deal will increase cotton demand and textile exports
• India’s FTAs with 37 developed economies cover 70% of global trade
• Goyal highlighted the importance of US imports like coking coal for steel production

Commerce and Industry Minister Piyush Goyal announced recently that the India-US trade agreement will create higher cotton demand while benefiting Indian farmers through increased textile exports.

The India US trade deal is expected to boost cotton demand and exports, with Piyush Goyal highlighting the agricultural trade benefits, strengthening India US relations and ensuring farmer benefits while aligning with India’s trade growth and agriculture policy.

“This will also not hurt our cotton producers... I can see before my eyes a huge requirement for more cotton and a huge and wonderful future for our cotton”, Goyal stated.

He explained that India would obtain identical trade benefits which Bangladesh receives because this will allow Indian products to compete better, especially in the fields of textiles, leather, footwear, handlooms, handicrafts and marine goods.

“The same concession is available to India also. It's called a yarn forward. If you buy cotton or yarn from the US and process it and use it for making garments, you are able to export it to the US at zero duty. That's an established principle of theirs. And India will benefit from the same way of working”, Goyal added.

The minister demonstrated that US reciprocal tariff reductions from 50% to 18%, together with European textile tariffs, which remain at zero, create better worldwide business conditions for India.

 The market access should be developed into market share, according to him, while he anticipated strong expansion for major export industries.

Also Read: India-US Energy Talks Focus on Growth-Linked Priorities

Goyal explained that India's current free trade agreements (FTAs), which have been established through recent negotiations, protect sensitive industries while providing additional possibilities for international trade.

He assured that the US agreement would not affect essential agricultural products because the United States would protect farmers' interests. The dairy industry maintains complete trade agreement restrictions because it serves as essential income support for millions of small farmers.

India has finalized nine FTAs in the past three-and-a-half years with 37 developed economies, which now provide access to more than 70 percent of worldwide trade. The agreements work to create business certainty which will attract investments and strengthen India's connection to international markets.

Goyal explained that India will gradually implement economic opening measures, which will create a balance between consumer needs while protecting farmers and supporting export-driven economic development.

He noted that India needs to import coking coal from the US, which serves as its main source for steel production, while he described the aviation industry growth potential that includes Boeing aircraft imports, which could reach $100 billion during the next five years.