Opposition leader Rahul Gandhi on Saturday accused Prime Minister Narendra Modi of "betraying the country" by signing a trade deal with the United States. Speaking in Thiruvananthapuram, Kerala, Gandhi claimed the agreement would devastate India's farmers, compromise its energy security, and allow the US to extract valuable Indian data. He made these strong remarks during the concluding session of the state-wide 'Puthuyuga Yatra' and in an interaction with the IT community.[aninews+4]
Gandhi's Core Allegations
Gandhi, a prominent Congress leader and the Leader of Opposition in the Lok Sabha, stated the trade deal would have dire consequences for ordinary Indians. "I must say that the PM has let the country down. He has betrayed the country," Gandhi said, adding he did not use the word lightly. He warned that farmers, small and medium business owners, and workers would bear the brunt of the agreement.[aninews+2]
He specifically criticized the deal for opening India's agriculture sector to American competition. Gandhi alleged that large, mechanized US agricultural firms would now compete with small, labor-intensive Indian farms. This, he argued, would be "devastating" for sectors producing cotton, dal, soybean, and fruits. He also highlighted that no previous Prime Minister had ever opened Indian agriculture to American competition in such a manner.[aninews+2]
Impact on Agriculture and Energy
The Congress leader further claimed the trade agreement jeopardized India's energy security. He alleged that Prime Minister Modi had committed to US President Donald Trump that India would only purchase oil from countries approved by America. This would force India to curb its purchases of Russian oil and increase energy imports from the US, potentially even Venezuela, according to Trump's earlier statements.[aninews+3]
Gandhi questioned why India, a powerful nation, would need permission from the US to buy oil from Russia. He described this as a significant compromise of India's independent foreign policy and energy procurement strategy. Recent events saw the US Treasury announce a 30-day waiver allowing Indian refiners to purchase Russian oil, a move the opposition criticized as proof of India's diplomatic space shrinking under US pressure.[aninews+1]
Concerns Over Data Sovereignty and Imports
Rahul Gandhi also raised serious concerns about India's data resources. He alleged that the trade deal effectively allowed the US to extract data from India, claiming these valuable national assets were "handed over" to the United States. During an interaction with IT professionals, Gandhi argued that India failed to leverage the immense value of its data during negotiations. He suggested that if India had asserted the value of its data, it could have secured better terms, potentially avoiding taxes on agriculture or small and medium businesses.[aninews+4]
The deal is also expected to significantly boost imports from the US. Gandhi noted that imports from the US worth around Rs 9 lakh crore (approximately $108 billion) could enter India under the agreement. Earlier reports indicated proposals to boost imports by as much as $100 billion annually. Gandhi reiterated his view that no previous Prime Minister had signed a deal with such broad implications for increased imports.[english+1]
Context of the India-US Trade Relations
The India-US trade agreement, announced by US President Donald Trump on February 2, 2026, followed a telephone conversation with Prime Minister Modi. Trump stated that the deal included broad tariff reductions on Indian goods and an agreement for India to halt Russian oil purchases while increasing US energy imports. This bilateral agreement came shortly after India finalized a free trade agreement with the European Union on January 27, 2026.[businessworld+1]
The United States has been India's largest trading partner for four consecutive years as of 2024, with total bilateral goods trade reaching approximately $130 billion. The US recorded a trade deficit of about $45 billion with India in 2024. US Deputy Secretary of State Christopher Landau recently stated on March 5, 2026, that the trade deal was "almost at the finish line," suggesting finalization was imminent.[businessworld+1]
The agreement is said to address obstacles for US medical devices and eliminate restrictive import licensing procedures that affect US information and communication technology (ICT) goods. India has also committed to resolving barriers impacting US food and agricultural products. Within six months of the agreement taking effect, India will reportedly determine if US or internationally recognized standards can be accepted in specific sectors to facilitate smoother exports into the Indian market.[businessworld]
Political Reactions and Future Outlook
Rahul Gandhi's strong accusations are part of a broader criticism from the opposition regarding the Modi government's handling of international trade and foreign policy. Other opposition leaders, including Congress President Mallikarjun Kharge, have echoed concerns that India is becoming a "vassal state" due to perceived pressure from the US, especially concerning oil imports. Kharge alleged that the US was using various pressures, including the Epstein files and investigations into the Adani group, to influence the Prime Minister.[telegraphindia]
The opposition has pointed to the US Treasury's language of "waiver" and "allow" regarding India's Russian oil purchases as evidence that India's energy import policy has shifted under US pressure. Strategic thinkers have also noted a potential shift in India's foreign policy, making it more vulnerable to US influence. Kerala Chief Minister Pinarayi Vijayan also criticized the Centre, stating that India's sovereignty should not be subject to foreign "clearance."[telegraphindia]
The government has not yet issued a detailed response to Gandhi's latest specific allegations of betrayal. However, Indian officials have previously maintained that energy security and diversification remain key priorities, with no immediate directive to abruptly cease all Russian oil purchases. The coming months will likely see continued debate and scrutiny over the recently signed India-US trade deal and its long-term implications for India's economy and strategic autonomy.[en+1]
