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Interim Trade Agreement

Lok Sabha

New Delhi, February 11, 2026: Leader of Opposition Rahul Gandhi on Wednesday criticised the interim trade agreement between India and the United States, describing it as “one-sided” and alleging that the government had compromised national interests. Speaking in the Lok Sabha, he said the agreement amounted to a “wholesale surrender” and claimed it affected India’s energy security and farmers’ interests.

During his address, Mr. Gandhi alleged that the government had “sold Bharat Mata” through the agreement. He argued that the deal had placed India in a disadvantageous position in negotiations with the United States. He further stated that if an INDIA Bloc government had negotiated the agreement, it would have insisted that India be treated as an equal partner.

Referring to U.S. President Donald Trump, Mr. Gandhi said an alternative government would have clearly conveyed that India must be respected as an equal in bilateral trade discussions. He emphasised that trade negotiations should protect domestic economic priorities and strategic autonomy.

The interim trade agreement between India and the United States has been positioned by the government as a step toward strengthening economic cooperation between the two countries. While specific details of the agreement were not elaborated upon during the debate, it is understood to involve trade facilitation measures and sector-specific adjustments aimed at boosting bilateral commerce.

India and the United States are major trading partners, with cooperation spanning goods, services, technology, defence, and energy. In recent years, both sides have sought to resolve tariff disputes and expand market access in sectors such as agriculture, energy, and manufacturing. Interim agreements are typically seen as transitional arrangements while broader negotiations continue.

Opposition members raised concerns in the House about the potential impact of the agreement on farmers and domestic industries. Mr. Gandhi stated that India’s energy security had been “handed over to America,” though he did not provide detailed data during his speech to substantiate the claim. He maintained that any trade arrangement must safeguard critical sectors and ensure that Indian producers are not placed at a disadvantage.

The government has not yet issued a detailed response to Mr. Gandhi’s remarks in Parliament. However, officials have previously stated that trade discussions with the United States are guided by national interest and aim to create opportunities for Indian businesses while maintaining strategic balance.

Trade agreements often involve complex negotiations over tariffs, quotas, regulatory standards, and market access. Such agreements can influence multiple sectors, including agriculture, energy imports, manufacturing exports, and digital services. Analysts note that interim deals are sometimes used to build confidence between negotiating partners before finalising comprehensive frameworks.

The debate in the Lok Sabha reflects broader political differences over economic diplomacy and trade policy. While the ruling coalition has emphasised deeper economic integration with key global partners, the Opposition has called for greater transparency and stronger protections for domestic sectors.

Further details regarding the implementation timeline and sectoral impact of the interim trade agreement are expected to emerge as discussions continue.

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