Rahul Gandhi Criticises India-US Trade Deal Over Textile Sector Impact

Leader of Opposition Rahul Gandhi has sharply criticised the recently negotiated interim trade deal between India and the United States, warning that it could devastate India’s textile industry and allied sectors. Gandhi claimed in public remarks and social media posts that the pact disproportionately favours competitors such as Bangladesh and undermines the interests of cotton farmers and textile exporters in India.

Speaking in a video message and online posts, Gandhi argued that the deal’s tariff provisions could distort the competitive landscape. He highlighted that while Bangladesh has secured zero-tariff access for certain garment exports to the U.S.—conditional on importing U.S. cotton—Indian textile exporters continue to face an 18 per cent tariff, putting them at a disadvantage. Gandhi asserted that this discrepancy may lead Bangladesh to reduce or stop purchasing cotton from India, which could cripple both India’s cotton farmers and its textile industry.

Gandhi’s comments were framed in stark terms. He warned that accepting these terms would leave Indian producers “destroyed” and “finished,” as rival exporters gain market share in the world’s largest consumer market. He reiterated that the textile sector supports millions of families across India, and any damage to its global competitiveness would have ripple effects on livelihoods.

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Political reactions have been mixed. While Gandhi’s stance has resonated with opposition parties, farmer organisations and unions who are already protesting against the trade framework, ruling party leaders have dismissed his claims. The government and Union Commerce Minister have defended the agreement, saying that tariffs have been reduced broadly for Indian exports and that the pact opens long-term market access opportunities, including for textiles and other goods.

Critics of the deal cite broader concerns beyond tariffs, including the future of India’s cotton export market and the strategic implications of preferential access granted to third-country producers. Economists and industry observers note that while incremental tariff reductions can support export growth, equitable market access and reciprocal arrangements are often essential in free-trade negotiations.

As political debate intensifies, the differing narratives underscore a broader national discussion about trade policy, domestic industry protection, and India’s positioning in global commerce. With general elections approaching, the controversy over the pact may continue to shape political discourse and economic policymaking.

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