Bengaluru: The India US trade agreement has triggered a sharp political debate, with Congress leaders calling the deal “economically uneven” and questioning why key details were being communicated by American officials instead of the Indian government. The BJP, however, has defended the agreement, calling it a major milestone that will boost trade, jobs and economic growth.
Karnataka minister for electronics Priyank Kharge compared the trade deal to the rollout of the Goods and Services Tax (GST), alleging that the government was celebrating tariff cuts while ignoring deeper imbalances. He claimed that while US tariffs on Indian goods have been reduced to 18%, American products are entering India at zero duty.
Congress Questions Tariff Structure
Criticising the government, Kharge said the celebration around the agreement made little sense. He argued that reducing tariffs after years and projecting it as a major achievement was misleading.
“The government first imposes high taxes, then reduces them after years, and then celebrates the reduction. The same logic is being applied here. Indian goods still face 18% duty in the US, while American goods come in duty-free. I don’t see what there is to celebrate,” he said.
Concerns Over Hidden Commitments
Industries minister MB Patil said that while tariff reductions could benefit Indian industries, the lack of transparency was worrying. He questioned whether India had made any commitments linked to Russian oil purchases as part of the negotiations.
“We know the tariff has come down to 18%, but what’s behind it is unclear. If it benefits industry, that is welcome, but the government must clarify if any other conditions were involved,” Patil said.
What the US Has Said
According to US officials, the agreement will allow greater agricultural exports to India, while Indian goods entering the US will continue to face an 18% tariff. Details of the full terms of the deal are yet to be officially outlined by New Delhi.
BJP Calls Deal a Milestone
The BJP’s Karnataka unit strongly defended the pact. State president BY Vijayendra described the India US trade agreement as a transformative step for the economy, saying it would benefit farmers, MSMEs, entrepreneurs and skilled workers.
In a post on X, he said the deal would strengthen the Make in India and Aatmanirbhar Bharat initiatives and help boost exports, job creation and economic growth.
Former chief minister Basavaraj Bommai also welcomed the agreement, calling it a significant step in strengthening ties between India and the United States. He said the deal would open new global opportunities, especially in technology, startups and development for farmers and small industries.
