Congress to Raise Indo US Trade Deal During Budget Debate in Lok Sabha
Finance Saathi Team
11/Feb/2026
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Congress plans to highlight concerns over the Indo-US trade agreement during the Budget debate, with Rahul Gandhi set to address the House.
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Opposition agrees to allow smooth functioning of Lok Sabha while raising key economic and policy issues during discussion.
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Trade pact’s impact on farmers, MSMEs and Make in India likely to dominate political narrative in Parliament.
As the Budget discussion gets underway in the Lok Sabha, the Congress party is expected to sharpen its attack on the Centre over the proposed Indo-U.S. trade agreement, making it a central theme of its intervention in Parliament. Senior Congress leader Rahul Gandhi is scheduled to speak during the debate, and party sources indicate that the trade deal will feature prominently in his remarks.
The Opposition, after several days of disruptions over multiple issues, has agreed to allow the normal functioning of the House so that it can raise crucial concerns — including the trade agreement — during the structured Budget discussion. This marks a strategic shift from protest-led disruptions to issue-based debate within parliamentary rules.
Trade Deal at the Centre of Political Debate
The proposed trade arrangement between India and the United States has already triggered sharp reactions from Opposition parties. Congress leaders have described it as a one-sided deal that may disproportionately benefit American exporters.
By bringing the issue into the Budget debate, the Congress aims to frame it as not just a foreign policy matter but as an economic issue directly affecting citizens, particularly farmers and small businesses.
The party’s leadership believes that the Budget discussion provides an opportunity to connect trade policy with:
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Domestic employment
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Agricultural sustainability
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Industrial competitiveness
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The future of Make in India
Rahul Gandhi is expected to question whether the agreement safeguards India’s economic sovereignty and protects vulnerable sectors.
Rahul Gandhi’s Expected Line of Attack
Congress insiders suggest that Rahul Gandhi may focus on three broad areas in his speech:
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Impact on Farmers:
Concerns that increased access to American agricultural products could hurt Indian farmers, especially in sectors such as dairy and food processing. -
Effect on MSMEs:
Fears that tariff concessions may expose micro, small and medium enterprises to unfair competition from U.S. firms. -
Transparency in Negotiations:
Demands for clarity on the exact concessions India has offered and what reciprocal benefits it has secured.
The Congress leadership is likely to argue that trade policy cannot be separated from the broader economic challenges facing the country, including unemployment and rising costs.
Opposition Strategy: Debate Over Disruption
In a significant move, Opposition parties have reportedly agreed to allow Parliament to function normally during the Budget discussion. This decision comes after consultations among various Opposition leaders who believe structured debate may be more effective than continuous adjournments.
By participating fully in the debate, the Opposition intends to:
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Place its objections on official record
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Seek detailed responses from the government
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Engage in issue-based confrontation
This approach allows the Congress to present itself as a responsible Opposition while still strongly criticising the government.
Government’s Likely Defence
The Centre has consistently maintained that trade discussions with the United States are balanced and guided by national interest. Government representatives are expected to defend the agreement during the debate, emphasising:
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Potential export gains
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Increased foreign investment
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Strengthened strategic partnership
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Safeguards for sensitive sectors
Ministers may argue that global trade engagement is essential for India’s long-term growth and that integration into global supply chains enhances competitiveness.
They are also likely to highlight that negotiations are ongoing and that no final agreement has been concluded without careful consideration.
Budget Debate as a Broader Economic Forum
The Budget discussion traditionally covers taxation, expenditure priorities and economic outlook. However, trade agreements often become part of the debate because they influence revenue, domestic industries and employment.
By linking the trade deal to the Budget, the Congress seeks to argue that:
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Revenue implications must be assessed.
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Domestic sectors need protection mechanisms.
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Policy coherence between trade and industrial strategy is essential.
The debate may also touch upon the government’s vision of Atmanirbhar Bharat and whether the trade agreement aligns with it.
Political Significance
The upcoming exchange in the Lok Sabha carries political weight beyond policy details. It will showcase:
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Rahul Gandhi’s economic positioning ahead of future elections.
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The government’s ability to defend its economic diplomacy.
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The Opposition’s strategy of constructive engagement.
If the Congress manages to effectively connect trade policy with everyday economic concerns, the issue could gain wider traction outside Parliament.
Farmers and Industry Watching Closely
Farmer groups and industry associations are closely observing the developments. Some agricultural organisations have already expressed caution regarding greater market access for foreign products.
Industry reactions are mixed. Export-oriented sectors see potential opportunities, while smaller domestic manufacturers remain wary of import competition.
The outcome of parliamentary debate may influence public perception of the agreement.
What Happens Next?
As the Budget debate continues, both sides are expected to present detailed arguments supported by data.
Key questions likely to arise include:
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What specific tariff reductions are under discussion?
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What safeguards are in place for vulnerable sectors?
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How does the agreement align with India’s growth and employment goals?
The answers will shape the narrative around the trade pact.
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