India to get Bangladesh-like US garment duty benefits under trade pact, says Piyush Goyal – The Times of India

India will obtain concessional duty entry for clothes made utilizing American yarn and cotton under the proposed trade settlement with america, comparable to benefits at the moment obtainable to Bangladesh, Commerce and Business Minister Piyush Goyal stated on Thursday.The US has lowered reciprocal tariffs on Bangladeshi items to 19%, although clothes appeal to zero duty provided that they’re manufactured utilizing US cotton and man-made fibres, PTI reported.At current, a Bangladeshi garment faces a 31% levy — comprising 12% most-favoured nation duty plus 19% reciprocal tariff. If US fibres are used, the duty falls to 12%.“Bangladesh ko jo Mila hai, wo Bharat ko bhi milne wala hai remaining settlement me (No matter Bangladesh has acquired, India may also get the identical within the remaining settlement,” Goyal instructed reporters.He stated the supply shall be included within the superb print of the India-US pact.The minister defined that if Indian corporations procure yarn ahead and cotton ahead from the US, manufacture clothes and export them to the US, these merchandise would additionally get duty-free entry, comparable to Bangladeshi companies.That provision exists within the US-Bangladesh settlement, and “it will likely be in our settlement additionally”, he stated, including that the association won’t affect Indian cotton farmers.The US has restricted cotton manufacturing and exports about $5 million price of cotton, whereas India is concentrating on $50 billion, he stated.In trade agreements, yarn ahead and cotton ahead are guidelines of origin (RoO) that require particular manufacturing phases inside the free trade space to qualify for duty concessions. These guidelines guarantee clothes use supplies sourced from companion international locations, thereby strengthening regional manufacturing.Timeline for implementation and uncooked materials importsThe profit for India’s attire sector will come into impact after India and the US signal the authorized settlement for the interim trade deal, anticipated by mid-March.India and the US have already finalised a framework for the primary section of the bilateral trade settlement, which is probably going to be carried out in March.Goyal stated there shall be no quota on the import of uncooked supplies reminiscent of cotton.He added that US companies are more and more viewing India as a trusted companion.The minister stated most agricultural merchandise grown by Indian farmers — together with dairy, cereals, poultry, soyameal, maize, most vegetables and fruit, ethanol, tobacco, many pulses and millets — are outdoors the scope of the trade deal.“Round greater than 90-95 per cent of the merchandise grown by farmers are out of the US trade deal,” Goyal stated whereas responding to opposition allegations that India has conceded a big half of its agricultural market.“What India wants and what we import even now and gadgets that won’t harm farmers in India in any means, solely these gadgets have been opened in a calibrated method after cautious consideration. This may also profit India in a means and farmers additionally,” he added.The minister’s remarks come after Chief of Opposition Rahul Gandhi alleged that the interim India-US trade deal was a “wholesale give up”, claiming that India’s power safety and farmers’ pursuits had been compromised.Goyal stated the Congress chief ought to apologise to the folks of India.Individually, talking at a Medtech, innovation and startup occasion, Goyal stated India’s free trade agreements would supply important concessional-duty market entry to the home medical gadgets sector.In sure FTAs, Indian medical gadgets will obtain duty concessions, he stated.“We’re opening developed markets via the 9 FTAs, which cowl 38 international locations with wealthy folks and excessive per capita incomes,” the minister stated.He recommended exploring land in states reminiscent of Rajasthan and Uttar Pradesh for creating a medtech zone comparable to the Andhra Pradesh MedTech Zone (AMTZ).Goyal added that the Nationwide Industrial Hall Growth Company (NICDC) might think about reserving 50-100 acres of land for medical system manufacturing models.Commenting on the US-Bangladesh association, Attire Export Promotion Council (AEPC) Chairman A Sakthivel stated the commerce minister had indicated that India is predicted to signal the settlement with the US quickly.He added that benefits comparable to these prolonged to Bangladesh’s textile sector are possible to be prolonged to India as properly.