Opposition leaders, including SP's Rajeev Rai and TMC's Saket Gokhale, have slammed the India-US trade agreement framework. They call it a 'compromise on dignity', 'disastrous', and 'one-sided', warning of farmer destruction and a rising trade deficit.
Opposition Slams 'Dignity Compromise'
Samajwadi Party National Secretary and MP, Rajeev Rai, on Saturday slammed the Centre over the framework of the India-US trade agreement, calling it a "compromise on the country's dignity."
In an X post, Rai alleged that the framework agreed upon by India and the US will lead to "destruction of farmers". "The joint declaration of the United States and India has been issued. This is not just a compromise on our interests, but also a compromise on the country's dignity. The destruction of farmers has been written into it. India will impose no tax on many American agricultural products and other goods, but the United States will continue to charge 18 per cent tax on goods from India. Until now, weak governments used to collect heavy taxes from the United States and, in return, gave either no tax or a negligible tax. But the 56-inch government has handed over everything to its 'my dear friend Trump'. Won't you clap?" the Samajwadi Party leader wrote on X.
As per the joint statement by the two nations, the US will apply a reciprocal tariff rate of 18 per cent on Indian originating goods, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery.
Rai's criticism came as the joint statement said that India will eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
TMC MP Calls Deal 'Disastrous'
TMC MP Saket Gokhale termed Prime Minister Narendra Modi a "hostage of the US", stating that the framework for the trade deal is "disastrous" for New Delhi.
Concerns Over $500 Billion Import Commitment
As per the framework, India intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years. Gokhale said that the exponential increase in India's export from the US will either lead to imports at higher prices or will "skyrocket" the trade deficit.
The TMC MP wrote on X, "Why the India-US trade deal framework announced last night is disastrous for India. The annual value of imports from the US to India for the last 3 years has been between USD 40-42 billion. Now, India has committed to increasing that by 11X to USD 500 billion over 5 years. Imagine - an increase in US imports to India from USD 40 billion to USD 500 billion in JUST 5 years. India's TOTAL annual imports (merchandise) from all countries are valued at USD 720 billion."
"This means either 3 scenarios: 1. India will import goods from the US at higher prices just to meet the USD 500 billion commitment 2. India's total import bill will rise hugely to meet the USD 500 billion commitment to the US, as well as to ensure that we keep importing goods from other countries which the US doesn't produce 3. Our current annual value of exports (merchandise) is USD 450 billion. Therefore, India's trade deficit will skyrocket unless we start exporting 11X more in just 5 years. All 3 scenarios are dangerous for India," he added.
Further, Gokhale called the framework of the agreement "one-sided", favouring the US. "We have committed to increase US imports to India to USD 500 billion in just 5 years. With the rupee hitting rock bottom against the US Dollar, we will spend enormously higher amounts for these imports. The rupee will further fall in value, with a huge impact on our economy. This trade deal framework is one-sided & benefits only the US. Modi keeps talking of 'Atmanirbhar Bharat', but he's literally sold our country to the US. Modi, who has become a hostage of the US, must resign instead of destroying India's economy with his pathetic capitulation," the X post read.
Framework for Interim Agreement
Earlier today, India andthe US announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. The joint statement said that the framework reaffirms the countries' commitment to the broader Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains. (ANI)
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