Image Source: NDTV
The U.S.-India interim trade agreement, set for finalization in March 2026, promises tariff reductions and expanded market access. However, critics argue it undermines India’s sovereignty, compromises farmers’ livelihoods, and pressures New Delhi into aligning with U.S. geopolitical interests, raising questions about whether partnership is edging into pressure.
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India and the United States began three-day talks on February 23 to finalize the legal text of their interim trade agreement. The deal follows a February 6 joint statement announcing a framework that eliminates U.S. tariffs on Indian imports while requiring India to reduce duties on American industrial and agricultural goods.
The agreement is positioned as a step toward a broader bilateral trade pact, but domestic critics argue it comes at the expense of India’s sovereign decision-making.
Key Highlights
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India agreed to reduce tariffs on U.S. industrial goods and agricultural products, while the U.S. removed a 25% tariff on Indian imports.
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The U.S. decision was linked to India’s commitment to halt Russian oil imports and expand defense cooperation, raising concerns about external pressure shaping India’s policy choices.
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Congress leaders, including Rahul Gandhi and Sachin Pilot, accused Prime Minister Narendra Modi of “compromising” national interests, arguing the deal undermines farmers’ livelihoods and energy security.
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Supporters of the agreement highlight its potential to strengthen supply chains, boost bilateral trade, and provide relief to Indian exporters after the U.S. Supreme Court struck down Trump’s global tariffs.
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Critics warn that trade concessions tied to geopolitical conditions risk eroding India’s economic self-reliance and sovereignty.
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The interim deal is expected to be signed in March 2026, marking a pivotal moment in India-U.S. relations, but the debate underscores the tension between partnership and pressure.
Sources: Business Today, Firstpost, Daily Excelsior, The White House, TaxNewsFlash
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