Rahul Gandhi alleges India–US trade deal will 'severely damage' textile sector

Leader of Opposition in the Lok Sabha Rahul Gandhi on Saturday renewed his attack on the Centre over the proposed India–US trade agreement, alleging that the deal could severely damage the country’s textile sector and mislead cotton farmers and exporters on tariff issues.

In a video message posted on X, Gandhi accused the Narendra Modi government and its ministers of “spreading confusion” over tariffs linked to the agreement and claimed that the textile industry, which he said supports crores of livelihoods, could face serious consequences.

“The textile sector of India provides employment to 5 crore families. This India–US deal will destroy the sector. Prime Minister Narendra Modi knows this and the entire country knows this,” Gandhi said in the video.

He also questioned the government’s communication around tariff structures, saying, “18 per cent tariff versus 0 per cent — let me explain how a prime minister and his cabinet, who are experts in lying, are creating confusion and how they are betraying India’s cotton farmers and textile exporters through this trade deal.”

Referring to Bangladesh’s garment exports to the United States, Gandhi alleged that Dhaka was being offered a “0 per cent tariff advantage” on the condition that it imports American cotton.

“After the announcement of an 18 per cent tariff on Indian garments, when I raised in Parliament the issue of special concessions being given to Bangladesh, a minister of the Modi government replied that if India wants the same benefit, we will have to import cotton from the US,” he said, questioning why this aspect was not disclosed earlier.

Gandhi asked whether such a policy would force India into a “no-win situation”, saying, “If we import American cotton, our own farmers will be ruined. If we do not import it, our textile industry will fall behind and be destroyed.”

He further claimed that Bangladesh had indicated it could reduce or stop importing cotton from India, which he said would add pressure on domestic farmers.

“Textile manufacturing and cotton cultivation are the backbone of livelihoods in India. Crores of people depend on these sectors. Any blow to them means pushing lakhs of families into unemployment and economic distress,” Gandhi said.

Calling for a more balanced approach, he said a government thinking in national interest would have negotiated an agreement that protected both cotton farmers and textile exporters.

“Instead, Narendra ‘Surrender’ Modi and his ministers have signed a deal that could deeply hurt both sectors,” he added.

The Centre has not issued an immediate response to the latest remarks.