Summary of this article
The Opposition has labelled the deal a threat to sovereignty, farmers and digital autonomy, while the government insists it safeguards agriculture, boosts exports and preserves economic independence
Sloganeering in the House and demonstrations at Parliament’s Makar Dwar coincided with a nationwide strike by farmers and trade unions
As India defends its right to independent energy purchases, there was a separate US executive order warning of tariffs linked to Russian oil
The Lok Sabha was adjourned until noon on Thursday shortly after proceedings began, following protests by Opposition members over the India–US interim trade deal and other issues. As Question Hour commenced, Opposition MPs raised slogans and entered the Well of the House, prompting Speaker Krishna Prasad Tenneti, who was in the Chair, to suspend proceedings.
Outside Parliament, Opposition MPs staged a protest at the Makar Dwar, describing the India–US interim trade agreement as a “trap deal” and accusing the Centre of compromising national interests. The protest coincided with a nationwide strike by workers and farmers, called by central trade unions against labour codes, trade agreements, privatisation and policies they termed anti-worker and anti-farmer.
The demonstrations took place amid rising tensions during the ongoing Budget Session. Leader of the Opposition Rahul Gandhi has criticised the trade deal, arguing that India must negotiate with the United States on equal terms.
Speaking in the Lok Sabha on Wednesday, he accused the government of undermining national interests through both the trade agreement and the Union Budget. These remarks made the Treasury benches warn the Leader of the Opposition that a privilege notice would be moved against him.
What the Opposition Claims
Compromise of national interest and sovereignty
Rahul Gandhi has argued that the deal “mortgages the future of 140 crore Indians”, putting national interests at risk. He alleged that it jeopardised employment, farmers’ livelihoods and energy security, and alleges that the government negotiated under pressure from the United States rather than as an equal partner.
Adverse impact on farmers and domestic industry
The deal has been criticised for opening Indian markets to heavily subsidised US agricultural and industrial products, threatening small farmers, domestic producers and India’s self-reliance goals. This concern was voiced by Samajwadi Party leader Akhilesh Yadav too.
Threat to digital and strategic autonomy
The Opposition contends that India’s strategic assets, particularly data, are being surrendered. They accuse the government of weakening digital sovereignty by allowing unrestricted data flows to the US, diluting data localisation norms, limiting source-code disclosure, and offering extended tax concessions to foreign technology firms.
Unbalanced trade terms and tariff risks
The Congress party has warned that the tariff structure is skewed in favour of the US, allowing American imports to surge without adequate reciprocal access. The party argued that pre-committed purchase clauses could turn India’s current trade position into a long-term deficit.
What the government claims?
Protection of agriculture and farmers
The government maintains that sensitive sectors such as agriculture and dairy have been safeguarded, with only a limited range of farm products included in the framework. It claims that around 90–95 per cent of Indian agricultural goods remain excluded, protecting farmers from unregulated imports.
Improved market access for Indian exports
Pro-government voices highlight that the United States has agreed to significantly reduce tariffs on many Indian exports — from as high as 50 per cent to around 18 per cent — which could improve access to the US market and benefit sectors such as textiles and MSMEs.
Assertion of economic sovereignty
The Union government has insisted that India will continue to make independent decisions on energy purchases, including crude oil, based on price and quality considerations, underscoring that the agreement does not compromise national sovereignty.
In a separate executive order and not in the joint statement, US President Donald Trump said the US would monitor whether India resumed Russian oil purchases "directly or indirectly" and that would determine whether a 25 per cent import duty would be re-imposed on the country.