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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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