Modi Under Fire Over Trade Deals with US and EU Following Trump’s Announcement

The opposition has labeled this a "diplomatic failure" and is demanding to know why New Delhi remained silent on such a significant economic decision. The issue has sparked heated debates in the Lok Sabha during the ongoing budget session.

According to Trump's claims, India will shift its oil purchases from Russia to the United States and has committed to buying nearly $500 billion worth of American goods. In exchange, India is expected to slash tariffs on US products. Congress leaders are concerned that these undisclosed terms might involve opening up India's sensitive agricultural sector to US competition, which could devastate local farmers and small businesses. Furthermore, critics argue that replacing discounted Russian oil with more expensive US crude will lead to higher domestic energy prices and hurt the economy.

The heat intensified as India also signed a trade pact with the EU, agreeing to eliminate or reduce tariffs on 96.6% of products. The opposition fears that simultaneous liberalization with two major global markets could deliver a massive blow to domestic industries. Drawing parallels to last year’s India-Pakistan ceasefire—which was also first revealed by Trump—critics are accusing the Modi government of compromising national interests. They are now demanding that the full text of the trade agreements be made public and presented for detailed scrutiny in Parliament.