Rahul Gandhi Attacks India–US Trade Deal, Says Cotton Farmers And Textile Exporters At Risk
New Delhi: Congress leader Rahul Gandhi on Saturday intensified his criticism of the finalised India–US trade agreement, alleging that the deal could severely impact India’s cotton farmers and textile exporters. In a post on X, Gandhi claimed the government had walked into what he described as a “trap” that could push millions of families towards unemployment.
Gandhi questioned the tariff structure under the agreement, pointing to an 18 per cent tariff on Indian garments in the US market compared to what he claimed was a zero-tariff benefit extended to Bangladesh. He said he had earlier raised the issue in Parliament, asking why Bangladesh was receiving special concessions.
According to Gandhi, he was informed by a minister that if India wanted similar benefits, it would have to import cotton from the United States. He alleged that Bangladesh’s zero-tariff access was conditional on importing American cotton and warned that Bangladesh may reduce or halt cotton imports from India.
Calling the situation a “damned if you do, damned if you don’t” scenario, Gandhi argued that importing American cotton would hurt Indian farmers, while failing to do so would leave India’s textile industry at a competitive disadvantage. He further accused the government of misleading farmers and textile exporters about the implications of the agreement.
This is not the first time the Leader of Opposition in the Lok Sabha has criticised the deal. Earlier, he had alleged that the agreement compromised food security and farmers’ interests, claiming that Prime Minister Narendra Modi had opened India’s agricultural markets under external pressure.
The government, however, has strongly rejected the allegations. Union Commerce and Industry Minister Piyush Goyal responded on Friday, accusing Gandhi of spreading what he termed a “stage-managed and artificial narrative.” In a video message, Goyal said the government had fully safeguarded farmers’ interests in the agreement.
Goyal maintained that the deal would benefit multiple sectors, including farmers, fishermen, MSMEs, startups, artisans and the youth. He asserted that the government stood by its position with full responsibility and that the agreement would not harm agricultural producers.
The debate over the India–US trade pact is likely to continue in Parliament and political circles, especially as stakeholders from the agriculture and textile sectors seek clarity on tariff structures, cotton imports and export competitiveness.
Our Thoughts
Trade agreements often involve complex negotiations and sector-specific trade-offs. While concerns about farmers and exporters deserve careful examination, the broader impact of the India–US trade deal will depend on implementation details, tariff schedules and domestic safeguards. Transparent communication and data-backed clarification from the government can help address apprehensions, while constructive opposition scrutiny ensures accountability. Ultimately, balancing farmer protection with export competitiveness remains a delicate but crucial policy challenge.