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    COVER STORY                                                        FEBRUARY 20, 2026       |  The Indian Eye                    5

            you are able to export it to the US at
            zero duty.” He stressed, “The same
            concession is available to India also.”
                In other words, Indian garment
            exporters can access the US market
            at 0 per cent duty if they use Amer-
            ican cotton or yarn — a benefit sim-
            ilar to that extended to Bangladesh,
            which recently secured a 19 per cent
            reciprocal tariff and zero-tariff ac-
            cess for garments made with US cot-
            ton and man-made fibre.
                For Goyal, this does not threat-
            en Indian farmers. On the contrary,
            he predicts surging demand. “We will
            actually need to focus more on in-
            creasing productivity because there’s
            tremendous demand coming in for
            cotton given the EU FTA, given all
            the 38 countries whose markets we
            have opened up. So I can see before
            my eyes huge requirement for more
            cotton and a huge and a wonderful
            future for our country,” he said.
                The government’s broader ambi-
            tion is to more than double bilateral
            trade with the US from USD 191 bil-
            lion to USD 500 billion by 2030. The
            BTA, proposed in February 2025,
            aims to address non-tariff barriers
            and expand market access across in-  Lok Sabha LoP Rahul Gandhi leaves after the Budget Session ad-  Union Home Minister Amit Shah waves at the public meeting in Karai-
            dustrial and agricultural goods.    journs until the second phase, on Friday. (ANI Photo/Rahul Singh)  kal on Saturday. (@AmitShah/ANI Photo)
                 A “Trap” for Farmers

                  eader of Opposition Rahul   mous. “The textile industry and cot-  fishermen.” He contrasted the Modi   zero duty, domestic cotton demand
                  Gandhi sees the same numbers   ton farming are the backbone of live-  government’s approach with that of   could adjust in complex ways. Goy-
            Ldifferently. In a sharply word-  lihood  in  India.  Crores  of people’s   the previous Congress-led adminis-  al argues overall demand will surge
            ed post on X, he wrote: “18% Tariff vs   daily bread depend on these very sec-  tration, alleging that under Manmo-  due to expanded markets across 38
            0% — Let me explain how the expert   tors. Attacking these sectors means   han Singh “farmers’ interests were   countries, offsetting any substitution
            liar Prime Minister and his cabinet   pushing millions of families into the   sold” in global agreements.  effect. Gandhi fears displacement.
            are spreading confusion on this issue.   pit of unemployment and economic   “PM Narendra Modi has worked   Third, can India leverage the in-
            And how they are cheating India’s   crisis.”                        to provide 100 per cent protection to   terim deal into a more comprehen-
            cotton farmers and textile exporters   He accused the government of   our farmers and livestock owners,”   sive BTA that addresses non-tariff
            through the India-US trade deal.”  failing to negotiate in the national in-  Shah said, dismissing Gandhi’s cri-  barriers and eliminates remaining
                Gandhi’s central argument is   terest: “A visionary government that   tique  as  part of a pattern:  “Rahul   tariffs on key sectors?
            comparative. Bangladesh, he noted,   thinks in the national interest would   Gandhi’s policy is to lie, speak loudly   The  fine  print,  expected  in
            is being given “0% tariff benefit on   have negotiated a deal that protects   and publicly, and repeat the lie re-  March, will be critical. Goyal him-
            garment  exports  to  the US  — the   and ensures the prosperity of both   peatedly.”                 self has said that “when the interim
            only condition is that they import   cotton farmers and textile exporters.   The  rhetoric  has escalated be-  agreement  is  finalized…  one  would
            American cotton.” By contrast, Indi-  But exactly the opposite has hap-  yond trade arithmetic into a larger   get to see it in the fine print.”
            an garments face an 18 per cent tariff   pened.”                    ideological battle over who truly rep-  For now, the India–US trade
            unless they also import US cotton.    Opposition MPs echoed this crit-  resents farmers and workers.  deal has become a proxy battle-
                He questioned why this condi-  icism in Parliament during the Bud-   Economic & Politics          field — over economic nationalism,
            tionality was not highlighted earlier.   get session, calling the interim agree-                      farmer protection, industrial com-
            “If  we  also  want  the  same  benefit,   ment a “trap deal.”           tripped of political invective,   petitiveness and political credibility.
            we will have to import cotton from   Amit Shah’s Counterattack           the debate turns on three eco-  The government sees a calibrated
            America. Why was this fact hidden                                   Snomic questions.                 integration into global value chains,
            from the country till now?” he asked,   he government has responded     First, will the 18 per cent recip-  backed by 9 FTAs and expanding
            referring to a ministerial reply in Par-  with equal force. In Karaikal,   rocal tariff significantly erode India’s   markets worth Rs 45 lakh crore. The
            liament.                          TUnion Home Minister Amit         competitiveness vis-à-vis Bangladesh   Opposition sees asymmetry and risk,
                For Gandhi, the policy creates   Shah accused Gandhi of spread-  and others? Given that US imports   especially for “crores of people’s dai-
            a dilemma: “If we import American   ing misinformation. “Rahul Gandhi   USD 7.5 billion each from India and   ly bread.”
            cotton, our own farmers will be ru-  wants to mislead the country’s fisher-  Bangladesh, even small differentials   As  India  moves towards  2029
            ined. If we don’t import it, our textile   men and farmers. He wants to spread   matter in a price-sensitive sector.  and beyond, trade policy is no longer
            industry will lag behind and get de-  confusion by telling lies,” Shah said.  Second, how large will the shift   a technocratic domain. It is elector-
            stroyed.” He described it as a “well in   Defending the FTAs with the US,   towards US cotton be under the   al terrain. And in that terrain, tariffs
            front, ditch behind” situation.   UK and EU, Shah insisted they would   yarn-forward rule? If exporters pivot   are not just percentages — they are
                The stakes, he argued, are enor-  “be of great benefit to our country’s   heavily to American inputs to secure   political weapons.

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