The United States' recent trade deal with Bangladesh, coming just days after it sealed an agreement with India, has raised concerns within political circles, with opposition parties claiming it as a setback for New Delhi.
However, experts argue that India should not be overly concerned about the reciprocal trade deal between Dhaka and Washington. Veena Sikri, former High Commissioner of India to Bangladesh, offers two key reasons why the agreement is unlikely to impact India.
"First, the sectors where Bangladesh is likely to benefit from zero tariffs for access to the American market are linked to its purchases of man-made yarn, cotton yarn, and possibly even cotton from the USA. Secondly, these items are already supplied by India at highly competitive prices and with quick turnaround times. So, a Bangladeshi exporter could actually receive these goods from India within a week," Sikri told ANI.
#WATCH | Delhi: On the Bangladesh-US reciprocal trade agreement, Veena Sikri, Former High Commissioner of India to Bangladesh, says, "I don't think we should be worrying at all for two reasons. First of all, the places where Bangladesh is likely to receive zero tariffs for access… pic.twitter.com/zl3xJyFTFB
— ANI (@ANI) February 10, 2026
Sikri also expressed skepticism about Bangladesh's ability to purchase Boeing jets as promised in the deal, given the country’s struggling economy. According to the 32-page US-Bangladesh agreement released by the US Trade Representative's office, Biman Bangladesh Airlines plans to purchase 14 Boeing aircraft, with options for additional purchases.
“They’re buying a huge number of Boeing jets, but who is going to pay for them? Bangladesh would likely need an IMF loan or some other form of financing. Their economy will become weaker if they are going to get into all these debts,” Sikri added.
US and Bangladesh signed the trade agreement on Monday, under which Dhaka has secured a reduced 19 per cent US tariff on certain goods, with exemptions for textiles and garments made from US materials.
Muhammad Yunus, the chief advisor of Bangladesh's interim government, confirmed that Washington had "committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fibers to receive zero reciprocal tariffs in the US market."
While Bangladeshi garments made with US cotton will enjoy zero tariffs, Indian textiles will be subject to an 18% tariff. This has raised concerns that Bangladeshi apparel could become more competitively priced than Indian exports to the US.
