Saurabh Mukherjee
A sharp political row erupted on Saturday (February 7) after India and the United States released a joint statement outlining the framework for an interim trade agreement, with opposition parties accusing the Narendra Modi government of conceding ground on national interests, particularly in agriculture, dairy and energy policy.
Opposition leaders alleged that the agreement reflected undue pressure from US President Donald Trump, especially in the context of a White House executive order that claimed India would stop buying Russian oil. They charged the Modi government with “surrendering” to Washington in return for tariff relief.
The Congress party mounted the strongest attack, linking the trade understanding to allegations surrounding the Epstein files.
“Out of fear of the Epstein Files, Narendra Modi has completely surrendered to Donald Trump,” the party said in a statement.
“First, Trump punished India with a 25% tariff because India was buying cheap oil from Russia. Now, while removing that tariff, Trump makes it clear: India will stop buying oil from Russia and buy oil from America instead,” it said.
The Congress further claimed that Modi had been “compromised” and that “India’s decisions, dignity, and national interest have been placed at Trump’s feet – all to ensure that whatever is hidden in the Epstein Files never sees the light of day.”
From the Left, CPI(M) MP John Brittas described the agreement as a “betrayal” of farmers.
“You traded away: Farmer livelihoods, manufacturing protections, energy sovereignty, tech independence,” he said, while also posting his objections on X to the deal as announced by the US.
The Samajwadi Party also questioned the terms of the agreement. Party MP Akhilesh Yadav dubbed it the BJP’s “compromise mathematics” and asked why India needed to concede so much.
“The people of our country are telling the BJP that, as far as we know, a ‘deal’ is not one-sided. The people are asking the BJP: ‘Zero (0) is bigger or eighteen (18)?’ Does 18=0 in the BJP’s compromise mathematics? Apart from hollow words, does the BJP have any other shield or protection plan to save the country’s farmers, shops, and industries? What is the deep secret hidden behind the compulsion to surrender India’s interests?” he wrote on X.
According to the joint statement, the US levy on Indian products will stand at 18%, while India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products. These include dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. However, the statement does not quantify India’s commitments in tariff terms.
The controversy has been sharpened by a White House executive order which stated that if India “resumes” buying Russian oil, the US would reimpose a 25% tariff.
The document claimed that US officials had received “additional information and recommendations from senior officials regarding India’s efforts” related to the national emergency declared over Russia’s actions in Ukraine, and asserted that India had agreed not only to stop importing Russian-origin oil but also to shift part of its energy purchases to US suppliers.
Addressing his first press conference after the joint statement was released, Union Commerce Minister Piyush Goyal declined to directly answer questions on whether India had committed to halting Russian oil imports.
Responding repeatedly to queries on the executive order, he said, “The MEA [Union Ministry of External Affairs] will be able to give this information.”
Earlier, during the weekly media briefing on Thursday (February 5), MEA spokesperson Randhir Jaiswal had reiterated India’s position on energy security.
“So far as India’s energy sourcing is concerned, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government. Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s actions are taken and will be taken with this in mind.”
Goyal, however, firmly rejected opposition claims that the trade agreement compromised farmers or the dairy sector.
“The opposition is hapless. Even the country does not believe its efforts to mislead and spread lies. I reiterate that in India’s dairy sector, there has been no compromise of any kind, and no concessions have been made in any way, nothing has been opened,” he said.
He also insisted that core agricultural interests had been protected.
“In India’s critical agriculture sector, there has been no compromise on production of meat, poultry, dairy, GM food products, soyabean, maize, cereals, millets, jawar, bajra, raagi, fruits like bananas, strawberries, cherries, citrus fruits, green peas, moong, oil seeds, some animal seed products, ground nut, honey, non-alcoholic beverages, flour, starch, some essential oils, ethanol and tobacco. India’s farmers will celebrate today and are wholly satisfied,” Goyal said.
Highlighting the benefits of the agreement, the minister said duties on several Indian exports to the US would be reduced from as high as 50% to zero. These include gems and diamonds, pharmaceutical products, aircraft parts, machinery parts, generic drugs, some auto parts, platinum, clocks and watches, essential oils, home decor items such as chandeliers and lamp parts, as well as certain inorganic chemicals, paper, plastic and wood items.
“The thing to celebrate – and is being talked about across the country – is how many farm goods will now enjoy zero duty in America, helping exports. Some people, who oppose Indian farmers and India, are aghast,” he said.
Goyal added that India has reduced or removed tariffs on items it requires, including DDGS, wines and spirits with a minimum import price, pista, walnuts, almonds, certain industrial inputs, medicines for cancer, heart and neurological treatment, some cosmetics, organic and inorganic chemicals, and products related to computers.
“On some items tariffs will be removed immediately, while others will be done in a phased manner, and some will have quota based tariffs,” he said.
He further said that there would be zero export duty on smartphones and described US agreement to supply ICT products as a major gain.
“That (authorisation requirement) is more directed towards safeguarding our interest from countries which are known to do predatory pricing or supply goods at irrational prices, which are even sometimes lower than the cost of manufacture in India,” Goyal said.
“Countries which have fair play and certainly and it is important that we all understand this, a country like the United States of America, where the cost of labour is probably 50 times the cost of labour in India, a country like the United States of America with a per capita income of $90,000 nearly, versus India which is at $3,000 per capita. There is certainly no competition. We actually complement each other,” the minister stated.
Linking the agreement to India’s technological needs, he added, “For our national security, we will certainly need many ICT products. For example, NVIDIA chips. We will certainly need AI equipment. We will certainly need data centres if we have to remain abreast with what is happening in the world. If our IT companies have to reorient themselves to start becoming more in tune with the needs of the world we will need these important ICT products. It is a big win for India that America has agreed to provide us all these ICT products which are the need of the hour in our country.”
Opposition leaders alleged that the agreement reflected undue pressure from US President Donald Trump, especially in the context of a White House executive order that claimed India would stop buying Russian oil. They charged the Modi government with “surrendering” to Washington in return for tariff relief.
The Congress party mounted the strongest attack, linking the trade understanding to allegations surrounding the Epstein files.
“Out of fear of the Epstein Files, Narendra Modi has completely surrendered to Donald Trump,” the party said in a statement.
“First, Trump punished India with a 25% tariff because India was buying cheap oil from Russia. Now, while removing that tariff, Trump makes it clear: India will stop buying oil from Russia and buy oil from America instead,” it said.
The Congress further claimed that Modi had been “compromised” and that “India’s decisions, dignity, and national interest have been placed at Trump’s feet – all to ensure that whatever is hidden in the Epstein Files never sees the light of day.”
From the Left, CPI(M) MP John Brittas described the agreement as a “betrayal” of farmers.
“You traded away: Farmer livelihoods, manufacturing protections, energy sovereignty, tech independence,” he said, while also posting his objections on X to the deal as announced by the US.
The Modi government will be defined by its blatant betrayal of Indian interests to suit the US agenda. Today’s revelations from the US directly contradict Piyush Goyal’s 3-page statement in Parliament.#IndiaUSJointStatement pic.twitter.com/sfDbrqWdz1
— John Brittas (@JohnBrittas) February 7, 2026
The Samajwadi Party also questioned the terms of the agreement. Party MP Akhilesh Yadav dubbed it the BJP’s “compromise mathematics” and asked why India needed to concede so much.
“The people of our country are telling the BJP that, as far as we know, a ‘deal’ is not one-sided. The people are asking the BJP: ‘Zero (0) is bigger or eighteen (18)?’ Does 18=0 in the BJP’s compromise mathematics? Apart from hollow words, does the BJP have any other shield or protection plan to save the country’s farmers, shops, and industries? What is the deep secret hidden behind the compulsion to surrender India’s interests?” he wrote on X.
According to the joint statement, the US levy on Indian products will stand at 18%, while India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products. These include dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. However, the statement does not quantify India’s commitments in tariff terms.
The controversy has been sharpened by a White House executive order which stated that if India “resumes” buying Russian oil, the US would reimpose a 25% tariff.
The document claimed that US officials had received “additional information and recommendations from senior officials regarding India’s efforts” related to the national emergency declared over Russia’s actions in Ukraine, and asserted that India had agreed not only to stop importing Russian-origin oil but also to shift part of its energy purchases to US suppliers.
Addressing his first press conference after the joint statement was released, Union Commerce Minister Piyush Goyal declined to directly answer questions on whether India had committed to halting Russian oil imports.
Responding repeatedly to queries on the executive order, he said, “The MEA [Union Ministry of External Affairs] will be able to give this information.”
Earlier, during the weekly media briefing on Thursday (February 5), MEA spokesperson Randhir Jaiswal had reiterated India’s position on energy security.
“So far as India’s energy sourcing is concerned, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government. Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s actions are taken and will be taken with this in mind.”
Goyal, however, firmly rejected opposition claims that the trade agreement compromised farmers or the dairy sector.
“The opposition is hapless. Even the country does not believe its efforts to mislead and spread lies. I reiterate that in India’s dairy sector, there has been no compromise of any kind, and no concessions have been made in any way, nothing has been opened,” he said.
He also insisted that core agricultural interests had been protected.
“In India’s critical agriculture sector, there has been no compromise on production of meat, poultry, dairy, GM food products, soyabean, maize, cereals, millets, jawar, bajra, raagi, fruits like bananas, strawberries, cherries, citrus fruits, green peas, moong, oil seeds, some animal seed products, ground nut, honey, non-alcoholic beverages, flour, starch, some essential oils, ethanol and tobacco. India’s farmers will celebrate today and are wholly satisfied,” Goyal said.
Highlighting the benefits of the agreement, the minister said duties on several Indian exports to the US would be reduced from as high as 50% to zero. These include gems and diamonds, pharmaceutical products, aircraft parts, machinery parts, generic drugs, some auto parts, platinum, clocks and watches, essential oils, home decor items such as chandeliers and lamp parts, as well as certain inorganic chemicals, paper, plastic and wood items.
“The thing to celebrate – and is being talked about across the country – is how many farm goods will now enjoy zero duty in America, helping exports. Some people, who oppose Indian farmers and India, are aghast,” he said.
Goyal added that India has reduced or removed tariffs on items it requires, including DDGS, wines and spirits with a minimum import price, pista, walnuts, almonds, certain industrial inputs, medicines for cancer, heart and neurological treatment, some cosmetics, organic and inorganic chemicals, and products related to computers.
“On some items tariffs will be removed immediately, while others will be done in a phased manner, and some will have quota based tariffs,” he said.
He further said that there would be zero export duty on smartphones and described US agreement to supply ICT products as a major gain.
“That (authorisation requirement) is more directed towards safeguarding our interest from countries which are known to do predatory pricing or supply goods at irrational prices, which are even sometimes lower than the cost of manufacture in India,” Goyal said.
“Countries which have fair play and certainly and it is important that we all understand this, a country like the United States of America, where the cost of labour is probably 50 times the cost of labour in India, a country like the United States of America with a per capita income of $90,000 nearly, versus India which is at $3,000 per capita. There is certainly no competition. We actually complement each other,” the minister stated.
Linking the agreement to India’s technological needs, he added, “For our national security, we will certainly need many ICT products. For example, NVIDIA chips. We will certainly need AI equipment. We will certainly need data centres if we have to remain abreast with what is happening in the world. If our IT companies have to reorient themselves to start becoming more in tune with the needs of the world we will need these important ICT products. It is a big win for India that America has agreed to provide us all these ICT products which are the need of the hour in our country.”
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