Rahul Gandhi Warns India–US Trade Pact Could Severely Impact Textile Sector
Leader of the Opposition in the Lok Sabha, Rahul Gandhi, intensified his criticism of the interim India–US trade arrangement on Saturday, arguing that the agreement negotiated by Prime Minister Narendra Modi could deal a heavy blow to India’s textile ecosystem.
In a video message, Gandhi contended that a government genuinely focused on safeguarding national interests would have secured terms that protected both cotton cultivators and textile exporters.
Instead, he claimed, the current deal risks harming these two interlinked sectors. According to him, the agreement reflects weak bargaining that may leave domestic producers at a disadvantage.
Gandhi highlighted what he described as an uneven tariff structure, asserting that Bangladesh enjoys zero-duty access to the US market, while Indian textile exports face an 18 percent tariff.
He maintained that this disparity places India at a competitive disadvantage, particularly since Bangladesh is a major rival in the global garment trade.
“The agreement will undermine the textile sector,” Gandhi said, adding that nearly five crore families dependent on the industry could feel the economic strain.
He argued that such tariff terms could enable Bangladesh’s textile exports to outpace India’s in the American market.
The Congress leader has repeatedly raised concerns about the trade arrangement, including during his recent address in the Lok Sabha while discussing the Union Budget.
He also suggested that the government was under external pressure in its negotiations, referring to international controversies involving public figures — allegations that have been strongly rejected by those named.
Union minister Hardeep Singh Puri dismissed Gandhi’s claims as unfounded and politically motivated.
Meanwhile, Commerce Minister Piyush Goyal stated that the forthcoming agreement with the United States would include provisions similar to those extended to Bangladesh, allowing a limited volume of Indian textile and apparel exports to enter the US market at zero reciprocal duty.
Responding to this clarification, Gandhi questioned why such details were not disclosed earlier. He argued that the arrangement effectively creates a dilemma: importing American cotton to access trade benefits could disadvantage Indian farmers, while refraining from doing so might weaken India’s competitiveness in textiles.
He characterized this situation as a “policy trap” that could squeeze both agriculture and manufacturing.
Gandhi also pointed out that Bangladesh may scale back its cotton imports from India, potentially adding another layer of pressure on domestic cotton growers.
As debate intensifies over the implications of the proposed trade framework, the issue is shaping up to be a key political flashpoint — with questions centering on whether the deal ultimately strengthens India’s export prospects or exposes vulnerable sectors to heightened competition.
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