India-US trade deal: Industry leaders hail agreement; Opposition cries 'total surrender'

The new India–US trade deal announced by US President Donald Trump on Monday drew praise from industry leaders, market watchers and members of the ruling NDA, but the Opposition remained sceptical, accusing the Narendra Modi government of "totally surrendering" to Washington.

Congress MP K.C. Venugopal moved an adjournment motion in the Lok Sabha, seeking a discussion on the agreement. He alleged that the deal could have “adverse consequences” for Indian industries and farmers.

“The US President has claimed that the trade deal was concluded at the request of the Hon’ble Prime Minister of India and has further stated that India has agreed to reduce tariff and non-tariff barriers to zero, effectively opening Indian markets to US goods. Such a move is likely to have far-reaching adverse consequences for Indian industries, traders, MSMEs and farmers,” Venugopal said.

He also flagged reports suggesting that the agreement may involve opening India’s agriculture sector to US exports, warning that this could jeopardise farmers’ livelihoods and income security.

“Further, it has been stated that the Government of India has agreed to stop purchasing oil from Russia and instead procure oil from the United States and Venezuela, raising serious questions about India’s strategic autonomy, energy security and independent foreign policy,” he added.

The Congress party also pointed to claims that India would increase imports from the US under the deal, arguing that this runs counter to the objectives of the government’s ‘Make in India’ programme.

Congress general secretary Jairam Ramesh criticised the government’s diplomatic approach, describing it as “huglomacy”, and alleged that Prime Minister Modi had “completely surrendered” before Trump.

He said that a year ago, when Modi visited the White House after Trump’s re-election, India–US ties appeared strong and trade negotiations had begun on a positive note. However, he claimed relations had since deteriorated following Trump’s announcements, including the halt of Operation Sindoor.

Ramesh further criticised what he described as a pattern of major policy developments being communicated first by the US side.

“It seems that Prime Minister Modi and President Trump spoke to each other today. This information has been provided not by the Indian side but by the US Ambassador to India. This now seems to be the routine — India gets to know of its government’s actions only from President Trump or his appointees. Trump-nirbharta,” he said.

Samajwadi Party chief Akhilesh Yadav also attacked the agreement, calling the opening of Indian markets to American agricultural products a “betrayal” of the nearly 70 per cent of the population dependent on farming for their livelihood.

Shiv Sena (UBT) leader Priyanka Chaturvedi echoed the concerns, saying she would wait for the full details but added that the deal, as described by Washington, did not appear to be a “win-win” arrangement for India.

India Inc hails deal

In contrast, industry leaders welcomed the agreement, saying it could accelerate growth and strengthen India’s position as a globally competitive manufacturing and innovation hub.

Mahindra Group CEO and Managing Director Anish Shah called the deal “a significant step forward in strengthening bilateral trade and investment ties.”

Mahindra Group Chairman Anand Mahindra said the development demonstrated the benefits of patience, noting that “when the noise subsides, two natural partners will come together.”

Aditya Birla Group Chairman Kumar Mangalam Birla said lower tariffs would deepen strategic and economic ties while creating fresh opportunities for investment and collaboration.

TVS Motor Company Chairman Sudarshan Venu said the reduction in reciprocal tariffs would enhance export competitiveness and reinforce confidence in long-term bilateral economic relations, aligning with the government’s vision of Viksit Bharat 2047.

RPG Enterprises Chairman Harsh Goenka and SpiceJet Chairman and Managing Director Ajay Singh were also among the industry leaders who welcomed the pact. “First the mother of all deals with the EU, now the father of all deals with the US — a great achievement by the Modi government. Patience pays,” Goenka wrote on X.