Under the interim framework, Indian textile and apparel exports face an 18% tariff in the United States, whereas Bangladesh enjoys zero-duty access provided it imports American cotton. Gandhi argued this creates a dilemma for India: sourcing US cotton could hurt domestic farmers, while avoiding US cotton might restrict India’s textile exports. He further cautioned that Bangladesh might reduce or stop importing cotton from India, potentially undermining local producers.

“The textile industry and cotton farming are the backbone of livelihood in India. Crores of people depend on these sectors. Attacking them pushes millions of families into unemployment and economic crisis,” Gandhi said, asserting that the government failed to negotiate a deal that protects both farmers and exporters.

Responding to the criticism, Union Commerce Minister Piyush Goyal clarified that Indian exporters will receive the same zero-duty benefits as Bangladesh if they import cotton or yarn from the US. Goyal added that Congress lacks understanding of the economic framework, dismissing Gandhi’s claims as misleading.

The interim trade agreement, described as a framework for a broader reciprocal deal, includes tariff reductions on US goods including industrial products, tree nuts, fruits, soybean oil, wine, and animal feed. Indian exports such as textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, home décor, artisanal products, and certain machinery face an 18% tariff. However, the deal also anticipates the removal of US tariffs on generic pharmaceuticals, gems, diamonds, and aircraft parts once fully implemented.

Economic analysts note that the agreement is designed to enhance bilateral trade but could require careful implementation to protect domestic producers. While India gains access to the US market under certain conditions, critics like Gandhi warn of the short-term challenges for rural farmers and the labor-intensive textile sector, which employs millions nationwide.

The debate is likely to intensify as political parties scrutinize the impact of the trade framework ahead of upcoming state and national elections, particularly focusing on job security and the sustainability of India’s cotton and textile sectors.