Textile Sector at Centre of Political Storm: Rahul Flags Industry Threat, Goyal Fires Sharp Rebuttal

A sharp political confrontation has erupted between Leader of Opposition Rahul Gandhi and Commerce Minister Piyush Goyal over the proposed India–US interim trade deal, with the spotlight on a contentious “zero-tariff” issue impacting India’s $150-billion textile sector.

Gandhi has warned that the agreement could severely damage the domestic textile industry, arguing that while Indian garments currently face an 18% tariff in the US market, competitors like Bangladesh may gain zero-duty access if they use American cotton. He claims this creates a double blow for India — either import US cotton, hurting Indian farmers, or refuse and risk losing competitiveness to Bangladesh’s cheaper exports.

Goyal has strongly rejected these allegations, calling them misleading and economically flawed, asserting that the agreement safeguards key crops including cotton and opens larger US market access for Indian products. He maintains the deal will boost textile exports, expand demand for Indian cotton, and strengthen farmer incomes rather than weaken them.

As political tempers rise, the government says the final agreement details — expected by March 2026 — will clarify protections, while the BJP has accused Gandhi of spreading misinformation in Parliament, intensifying the trade debate into a full-blown political flashpoint.