A political row has erupted over the recently announced India-US Interim Trade Framework Agreement, with opposition leaders alleging that the deal compromises national interests, while the Union government has maintained that it safeguards farmers and small businesses.
Congress leader Pawan Khera on Saturday criticised the agreement, questioning whether India’s negotiating position had weakened under the current leadership.
“Where is the India which used to look Nixon, George Bush and Obama in the eye and forge practical relations? Why does it feel today that the interests of the common people of India are undermined before the interests of Narendra Modi and his two friends, Ambani and Adani? This is not an Agreement with the US, but a compromise with our self-respect…,” he said.
Khera also accused Narendra Modi, External Affairs Minister S. Jaishankar, and Commerce Minister Piyush Goyal of celebrating what he described as a “surrender.”
“Those who are attempting to show this as a reason to celebrate – Narendra Modi, his EAM and Piyush Goyal themselves know what has actually happened. This is not a deal, but a surrender,” he added.
Khera further alleged that Leader of the Opposition Rahul Gandhi had been prevented from speaking in Parliament on the matter, claiming that the government was avoiding debate on the terms of the agreement.
Rashtriya Janata Dal MP Manoj Kumar Jha also criticised the Centre, alleging that the country was being misled over tariff revisions under the agreement.
“On most things, our tariff, in the worst of times and the best of times, was 2.9%. Through threats, it was raised to 50%. Then it was reduced to 18%. Is this something to celebrate? Aren’t you misleading the entire nation? When this takes further shape and comes to the forefront, there will be unrest on the streets,” he said.
He further questioned the manner in which details of the framework were communicated.
Commerce Minister Piyush Goyal defended the agreement, asserting that Indian farmers and MSMEs would benefit from improved market access.
“Agricultural products from Indian farmers will be exported to the United States at zero duty. At the same time, no tariff concessions have been granted to US farmers for agricultural products entering the Indian market. The agreement also makes it clear that genetically modified (GM) food will not be allowed into India,” the minister said.
He added, “I can state categorically and without any hesitation that India’s farmers, MSMEs, artisans, and craftsmen will not suffer any loss. On the contrary, India will benefit from greater access to the US market.”
According to a joint statement, the United States will apply a reciprocal tariff rate of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor items, artisanal goods and certain machinery.
Subject to the successful conclusion of the Interim Agreement, reciprocal tariffs on several goods — including generic pharmaceuticals, gems and diamonds, and aircraft parts — may be removed.
Earlier, Kirit Bhansali, Chairman of the Gems and Jewellery Export Promotion Council, welcomed the framework, stating that it would provide relief to the sector and potentially reverse declining trade volumes with the United States.
The India-US Interim Trade Framework Agreement was jointly announced by both countries as a step toward reciprocal and mutually beneficial trade. However, the political debate surrounding its long-term implications continues.
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