Rahul alleges cotton, textile sectors hit by India-US tariff deal

Metro India News | NEW DELHI

Congress leader Rahul Gandhi on Saturday accused the Centre of misleading the country over the India-US interim trade agreement, alleging that the deal harms both cotton farmers and textile exporters.

In a post on X, the Leader of Opposition in the Lok Sabha said the government failed to safeguard the interests of two key sectors that support millions of livelihoods. He argued that instead of negotiating balanced terms, the Centre agreed to provisions that could severely impact domestic cotton cultivation and garment exports.

Gandhi cited the tariff structure under the arrangement, pointing out that while Indian garments face an 18 per cent tariff in the United States, Bangladesh has been granted zero per cent tariff access, subject to importing American cotton. He questioned why this condition was not disclosed earlier.

Referring to his intervention in Parliament, Gandhi said that when he raised concerns about the concession extended to Bangladesh, a Union minister responded that India could avail similar benefits only if it agreed to import cotton from the US. He termed this a “policy trap,” arguing that such a move would place the country in a difficult position.

According to Gandhi, importing American cotton would hurt Indian farmers by undermining domestic demand, while refusing to do so would leave Indian textile exporters at a competitive disadvantage in the US market. He further claimed that Bangladesh is also indicating a possible reduction or halt in cotton imports from India, compounding the concerns.

The Congress leader emphasised that cotton farming and the textile industry form the backbone of employment and rural sustenance across the country. Any adverse impact on these sectors, he said, could push millions of families into economic distress and unemployment.

"A visionary government that thinks in the national interest would have negotiated a deal that protects and ensures the prosperity of both cotton farmers and textile exporters.

"But exactly the opposite has happened — Narendra 'Surrender' Modi and his ministers have made an agreement that is likely to inflict deep damage on both sectors," he said in his post.