Congress has stepped up its attack on the newly announced India–US trade deal framework, alleging that the proposed concessions favour the United States at the cost of Indian farmers, exporters and energy security.
Congress MP and senior leader Jairam Ramesh criticised the agreement, questioning both its economic impact and its geopolitical implications. In a post on X, he said the joint statement released by India and the US lacked clarity but pointed to several outcomes that, in his view, put India at a disadvantage.
One of his main concerns was India’s reported commitment to stop importing oil from Russia. Ramesh said the White House had indicated that India had agreed to halt Russian oil purchases and warned that the US could reimpose a 25 percent penalty if India buys Russian oil directly or indirectly. He flagged this as a serious issue at a time when discounted Russian crude has helped India manage energy costs.
Ramesh also criticised the proposal to lower import duties on agricultural products. He argued that cutting tariffs would benefit American farmers while hurting Indian farmers, especially those already facing price pressure and rising input costs. According to him, India’s annual imports from the US could triple under the deal, erasing India’s long-standing trade surplus in goods.
Taking a swipe at Prime Minister Narendra Modi, the Congress leader suggested that strong diplomatic optics had not translated into tangible economic gains. He said Indian exports to the US, including IT and other services, would continue to face uncertainty, while Indian goods exports could be hit by higher duties than before. In a sharp political remark, he said that symbolic gestures and public displays of warmth had not delivered results for India.
The criticism comes a day after India and the United States announced a framework for an interim trade agreement aimed at promoting reciprocal and mutually beneficial trade. The joint statement said both sides would continue negotiations towards a broader Bilateral Trade Agreement, which was launched by US President Donald Trump and Prime Minister Modi on February 13, 2025.
Under the framework, the US plans to impose a reciprocal tariff of 18 percent on several Indian goods, including textiles, apparel, leather and footwear, plastic and rubber products, organic chemicals, handicrafts and certain machinery. However, the US will remove tariffs on some aircraft and aircraft parts imported from India that were earlier imposed on national security grounds.
India, for its part, has agreed to remove or reduce tariffs on all US industrial goods and many food and agricultural products such as animal feed grains, tree nuts, fruits, soybean oil, wine and spirits. India has also indicated plans to purchase goods worth $500 billion from the US over the next five years, including energy products, aircraft, technology items, precious metals and coking coal.