New Delhi: Leader of Opposition in the Lok Sabha Rahul Gandhi on Saturday accused the government led by Prime Minister Narendra Modi of misleading the public over tariff provisions in the recently announced India-US interim trade agreement, claiming the arrangement would hurt India’s cotton farmers and textile exporters.
In a post on X, the Congress MP alleged that Indian garments would face an 18% tariff in the United States, while Bangladesh would enjoy zero tariffs on garment exports to the US on the condition that it imports American cotton. He questioned why this aspect of the arrangement was not disclosed earlier and said a minister had indicated in Parliament that India would need to import US cotton to secure similar benefits.
Gandhi argued that such a policy would create a difficult situation for India. According to him, importing American cotton could negatively affect domestic cotton farmers, while refusing to do so might disadvantage India’s textile industry in global markets. He further claimed that Bangladesh was signalling a possible reduction or halt in cotton imports from India, which he said could compound challenges for Indian producers.
Describing the textile and cotton sectors as critical to livelihoods across the country, Gandhi said any adverse impact on these industries could push millions towards unemployment and financial distress. He also criticised the government’s negotiation strategy, asserting that a trade deal in the national interest should have safeguarded both farmers and exporters.
The India-US Interim Agreement, announced last week, is positioned by the government as a framework for a broader reciprocal trade pact. The arrangement includes elimination or reduction of tariffs on a range of US industrial, food and agricultural products entering India.
In return, the United States will impose a reciprocal 18% tariff on selected Indian goods, including textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, home decor items and certain machinery. However, tariffs on items such as generic pharmaceuticals, gems and diamonds, and aircraft parts are set to be removed once the agreement is fully implemented.
The Centre has maintained that the agreement is designed to expand bilateral trade and ensure balanced market access for both countries.
