Hugs haven’t helped: Congress slams Centre over India-US trade pact

Reacting on the India-US joint statement on the interim trade pact, Congress on Saturday (February 7) said the agreement was "silent" on details and mocked Prime Minister Narendra Modi, saying "all the hugs and photo-ops have not amounted to much".

The Opposition party also took a jibe at the government with the iconic line from the Mukesh song "Dost dost na raha" from the 1964 film "Sangam".

Also read: India-US interim trade agreement: Here are the key points

India and the US on Saturday (February 7) announced to have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.

‘Namaste Trump won’

Congress general secretary in charge of communications, Jairam Ramesh, said the US-India joint statement just issued is silent on details.

"But from what has been revealed, it is clear that: India will no longer import oil from Russia. Separately, the US has announced that a 25 per cent penalty could be reimposed if India buys oil directly or indirectly from Russia," he said on X.

It has also been revealed that India will slash import duties to help American farmers at the cost of Indian farmers, Ramesh claimed.

"India's annual imports from the USA will triple, wiping out our longstanding goods trade surplus. There will continue to be great uncertainty on India's exports of IT and other services to the US. India's exports of goods to the US will face higher duties than before," Ramesh said.

Also read: India, US seal trade deal framework; tariffs on Indian goods cut to 18%

"All the hugs and photo-ops have not amounted to much. Namaste Trump has scored over Howdy Modi," the Congress leader said, adding, "Dost dost na raha".

Boost for ‘Make in India’

Commenting on the development, Prime Minister Narendra Modi said the agreement will strengthen the 'Make in India' initiative by opening up new opportunities for farmers and entrepreneurs, and create jobs for women and youngsters.

The Prime Minister also thanked US President Donald Trump for his personal commitment to robust ties between India and the US.

"Great news for India and USA! We have agreed on a framework for an Interim Trade Agreement between our two great nations," Modi said in a post on X.

"It strengthens 'Make in India' by opening new opportunities for India's hardworking farmers, entrepreneurs, MSMEs, startup innovators, fishermen and more. It will generate large-scale employment for women and youngsters," the prime minister said.

Deal details

According to the interim trade deal, Trump has removed the 25 per cent tariffs, or additional import duty, imposed on India last August for purchasing Russian oil, citing that the country has undertaken "significant steps" and New Delhi has committed to stop directly or indirectly importing oil from Moscow.

The interim pact will open a USD 30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen, as US duties on Indian goods will come down to 18 per cent from 50 per cent earlier.

Also read: India fully protects sensitive wheat, rice, poultry under trade pact with US: Piyush Goyal

According to the joint statement, the two countries will "promptly" implement this framework and work towards finalising the interim agreement with a view to concluding a mutually beneficial Bilateral Trade Agreement (BTA).

India will eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products, the statement said.