India-US trade deal will expand cotton demand, benefit farmers: Piyush Goyal
Times of India
by TNNFebruary 13, 2026
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The India-US trade deal is set to boost cotton demand and benefit Indian farmers by enhancing textile exports, according to Commerce and Industry Minister Piyush Goyal. He emphasized that the agreement will not harm domestic cotton producers but instead open up new opportunities for them. The deal includes a "yarn forward" mechanism, allowing Indian manufacturers to import US cotton or yarn, process it into garments, and export these products duty-free to the US. This provision, similar to what Bangladesh enjoys, makes Indian textiles more competitive in the US market.
Goyal highlighted that the reduction of US tariffs on Indian textile imports from 50% to 18%, along with zero duties for textiles exported to Europe, significantly strengthens India's export capabilities. He projected strong growth in sectors like textiles, leather, footwear, and marine products, driven by increased market access. The deal also protects sensitive agricultural sectors such as rice, wheat, corn, and millets, ensuring farmers' interests are safeguarded. Additionally, the dairy sector remains closed to protect millions of small farmers who rely on it for supplementary income.
The trade agreement with the US is part of India's broader strategy to integrate more deeply into global markets while balancing consumer, farmer, and export-led growth interests. Over the past three-and-a-half years, India has finalized nine free trade agreements with 37 developed economies, opening up access to over 70% of global trade. These pacts aim to provide certainty for businesses, attract investment, create jobs, and enhance India's economic integration on the global stage.
Goyal also noted that imports, particularly coking coal from the US to boost steel production, will play a crucial role in India's industrial growth. He expressed optimism about increased aircraft imports, which could benefit the aviation sector by boosting tourism, improving connectivity, and potentially reducing airfares. The minister stressed that free trade agreements are not just about tariffs but also about building trust, transparency, and long-term certainty to attract investment and drive economic growth.
Overall, the India-US trade deal represents a strategic move to enhance India's global
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Originally published on Times of India on 2/13/2026