Published: 13 February 2026NRI AffairsEconomy
Opposition Leader Rahul Gandhi Warns India-US Trade Deal Will 'Destroy' Textile Industry
Leader of Opposition in the Lok Sabha Rahul Gandhi on February 14, 2026 argued that the India-US trade deal will 'destroy and finish' the textile industry. He accused PM Modi and his ministers of inflicting deep damage on cotton farming and textile export industries.
The textile sector employs approximately 4.5 crore people, making it the second-largest employer after agriculture. Rajasthan's textile sector, centred around Bhilwara (known as the 'Textile City' of India), Pali, and Jodhpur, is a major contributor to state GDP. Textile exports account for about 8.63% of India's exports. Industry bodies sought clarity on specific tariff impacts.
0Mains angle
Q: Critically examine the concerns raised by the Leader of Opposition regarding the India-US trade deal's impact on India's textile industry, with particular reference to Rajasthan's textile hubs.
Answer (50 words):
On February 14, 2026, Leader of Opposition Rahul Gandhi warned the India-US trade deal would 'destroy and finish' India's textile industry, which employs 4.5 crore people as the second-largest employer after agriculture. Textiles contribute about 8.63 percent of exports; Rajasthan's Bhilwara ('Textile City'), Pali and Jodhpur anchor the exposed supply chain.
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Frequently asked questions
What did Rahul Gandhi say about the India-US trade deal and textiles?
**Leader of Opposition Rahul Gandhi** warned on **February 14, 2026** that the **India-US trade deal will 'destroy and finish' the textile industry**, accusing PM Modi of inflicting deep damage on **cotton farming and textile export industries**.
How significant is India's textile sector in terms of employment?
India's textile sector employs approximately **4.5 crore people** (45 million), making it the **second-largest employer after agriculture**. Textile exports account for about **8.63% of India's exports**, making any adverse trade policy impact significant.
Why is the India-US trade deal concerning for Rajasthan's textile sector?
Rajasthan's textile sector, centred around **Bhilwara** (known as the 'Textile City of India'), **Pali**, and **Jodhpur**, is a major concern. If US tariff reductions lead to cheaper American textile exports flooding Indian markets, Rajasthan's domestic textile manufacturers could face severe competition.
What is Bhilwara's significance in India's textile industry?
**Bhilwara** in Rajasthan is known as the **'Textile City of India'** — it is one of India's largest producers of synthetic yarn and fabric. The city houses hundreds of textile mills and exports extensively, making it highly sensitive to India-US trade terms.
What is the India-US Interim Trade Agreement Framework of 2026?
India and the USA announced a **Historic Interim Trade Agreement Framework** in February 2026 that reduced the US IEEPA reciprocal tariff on India from 25% to 18%. Critics like Rahul Gandhi feared this could expose India's domestic industries — especially textiles — to increased American competition.
