Rahul Gandhi Alleges PM Modi Bowed to Pressure in India-US Trade Deal, Sparks Political Storm
New Delhi (TheTrendingPeople): Leader of Opposition in the Lok Sabha Rahul Gandhi on Tuesday launched a sharp attack on Prime Minister Narendra Modi, accusing him of being “compromised” and acting under pressure while finalising the recent India-United States trade agreement.
Speaking to reporters within the Parliament premises, Gandhi claimed that the agreement was signed not out of national interest but due to external pressure. His remarks have triggered a fresh political confrontation between the ruling Bharatiya Janata Party (BJP) and the opposition.
The India-US trade deal was finalised on Monday after a telephonic conversation between Prime Minister Modi and US President Donald Trump, marking a significant development in bilateral economic relations.
The India-US trade agreement comes after months of stalled negotiations and diplomatic engagement. Officials from both sides had been working to resolve tariff disputes and market access issues that had slowed trade growth in recent years.
Under the new arrangement, the United States agreed to reduce tariffs on several Indian exports to 18 per cent, benefiting sectors such as textiles, pharmaceuticals, engineering goods, and auto components. In return, India agreed to ease certain trade barriers on American products, including agricultural items, industrial equipment, and digital services.
Government sources have described the agreement as a step towards strengthening strategic and economic cooperation between the two countries. India-US bilateral trade has grown steadily over the past decade and currently exceeds $190 billion annually.
However, opposition leaders have questioned the timing and transparency of the deal, arguing that Parliament and key stakeholders were not adequately consulted.
Addressing the media, Rahul Gandhi alleged that the Prime Minister had signed the agreement after resisting it for several months.
“Modiji is scared. Everyone saw that the trade deal was on hold for four months. Suddenly, it was signed yesterday evening. There is pressure on him, and the image he has built with thousands of crores can burst soon,” Gandhi said.
He further accused the Prime Minister of compromising national interests.
“Indians should understand that Narendra Modi has sold your hard work, your sweat, and your blood. He has sold the entire nation because he is compromised,” Gandhi added.
Gandhi’s remarks came amid his repeated attempts to raise the Ladakh standoff and national security concerns in the Lok Sabha. For the second consecutive day, he sought to cite a magazine article linked to the 2020 India-China military confrontation, reportedly mentioned in an unpublished book by former Army Chief General M.M. Naravane (Retd.).
The Chair, however, ruled against quoting media reports and urged him to rely only on authenticated sources. Gandhi later alleged that he was being prevented from raising key national issues.
“For the first time, a Leader of Opposition was not allowed to speak during the Presidential address,” he claimed.
Meanwhile, senior Congress leader Jairam Ramesh also attacked the government through a post on X, accusing it of yielding to growing American influence in policy decisions.
Impact Analysis
Political Impact
The controversy has intensified political polarisation in Parliament. The opposition Indian National Congress has framed the trade agreement as evidence of weakened leadership, while the BJP has dismissed the allegations as politically motivated.
The issue is expected to dominate parliamentary debates and feature prominently in upcoming political campaigns, especially as foreign policy and economic sovereignty remain sensitive topics.
Economic Impact
Economically, the agreement is likely to provide relief to Indian exporters by making their products more competitive in the US market. Reduced tariffs could boost export volumes and improve foreign exchange earnings.
However, domestic industries, particularly small manufacturers and farmers, have expressed concerns about increased competition from American imports. Industry associations have urged the government to ensure adequate safeguards for vulnerable sectors.
Experts caution that while short-term export gains are possible, long-term benefits will depend on how effectively India protects its strategic industries.
Social and Industrial Impact
Socially, the deal has reignited debates on self-reliance, employment, and economic security. Critics argue that easier access for foreign products could hurt local businesses and informal workers.
Industrially, large corporations and multinational firms are expected to benefit from simplified regulations and better market access. Small and medium enterprises, however, remain cautious about pricing pressures and market dominance by global players.
Expert Opinion and Public Response
Trade analysts believe that the agreement reflects broader geopolitical realities.
A senior economic expert said, “India and the US are strategic partners. Trade agreements are inevitable, but they must be structured carefully to protect domestic interests.”
Political observers note that Gandhi’s allegations have resonated with sections of the opposition but may not significantly alter public perception without concrete evidence.
On social media, reactions have been sharply divided. Supporters of the government have defended the deal as a pragmatic move to strengthen India’s global position, while critics have echoed concerns over transparency and sovereignty.
Business groups have largely welcomed the agreement but have called for detailed implementation guidelines and sector-wise consultations.
Future Outlook
The trade agreement is expected to be implemented in phases, with regular reviews and joint monitoring mechanisms. Both governments are likely to hold further discussions to resolve sector-specific concerns.
In Parliament, opposition parties are expected to demand a detailed debate and disclosure of negotiation terms. The government may also face pressure to table impact assessment reports.
Diplomatically, the deal could open the door for deeper cooperation in defence manufacturing, technology, and energy security. At the same time, India will need to carefully balance its relations with other strategic partners, including Russia and China.
Politically, the controversy is unlikely to fade soon, and the trade pact is set to remain a key issue in national discourse.
Our Thoughts
The sharp exchange over the India-US trade agreement reflects a larger debate about India’s economic direction and political accountability. While global trade partnerships are essential in today’s interconnected world, they must be built on transparency, parliamentary oversight, and strong safeguards for domestic interests.
Allegations of external pressure are serious and deserve factual examination rather than political posturing. At the same time, the government must communicate clearly with citizens and stakeholders to build trust around major policy decisions.
As India expands its global economic footprint, balancing national priorities with international commitments will remain a defining challenge. The real test of this agreement will lie in how it benefits ordinary citizens, workers, and small businesses in the years ahead.