9 Feb 2026·Source: The Hindu

5 min

International RelationsEconomyNEWS

CPI(M) Criticizes India-U.S. Trade Deal, Citing Risks to Farmers

CPI(M) criticizes India-U.S. trade deal, alleging threats to farmers and sovereignty.

Photo by Vitaly Gariev

The Communist Party of India (Marxist) [CPI(M)] has strongly criticized the India-U.S. trade agreement, calling it a "shameful surrender" that threatens India's economic security and sovereignty. The CPI(M) Polit Bureau alleged that the government granted sweeping concessions to the U.S., including zero-tariff access for several U.S.

agricultural exports. They warned that these decisions would inflict severe losses on Indian farmers, particularly apple, cotton, and soybean growers. The party also expressed concern over reports that India had agreed to dismantle non-tariff barriers on food and agricultural goods, potentially rolling back farm support and subsidies.

The CPI(M) demanded full disclosure of the trade deal before Parliament.

Key Facts

CPI(M) calls the India-U.S. trade deal a "shameful surrender."

The party alleges the deal threatens India's economic security and sovereignty.

CPI(M) claims the government granted sweeping concessions to the U.S.

The deal includes zero-tariff access for several U.S. agricultural exports.

The party warns of severe losses for Indian farmers, particularly apple, cotton, and soybean growers.

UPSC Exam Angles

GS Paper 2: International Relations - Bilateral agreements involving India

GS Paper 3: Economy - Impact of trade agreements on agriculture and industry

Potential question types: Statement-based MCQs on trade agreements, analytical questions on the impact of trade policies

Visual Insights

Key Agricultural Regions Potentially Impacted by India-U.S. Trade Deal

This map highlights the regions in India where apple, cotton, and soybean farmers are concentrated, and thus most likely to be affected by the India-U.S. trade deal. It also shows the location of Washington State, a major apple-producing region in the U.S.

Loading interactive map...

📍Jammu & Kashmir, India📍Maharashtra, India📍Madhya Pradesh, India📍Washington State, USA

More Information

Background

The India-U.S. trade relationship has evolved significantly over the decades. Initially characterized by protectionist policies on both sides, the economic liberalization in India in the 1990s marked a turning point. This led to increased trade and investment flows, though disagreements over market access and intellectual property rights have persisted. Key agreements like the General Agreement on Tariffs and Trade (GATT), now the World Trade Organization (WTO), have shaped the framework for these interactions. Bilateral trade agreements between India and the U.S. have been a subject of ongoing negotiations. These agreements aim to reduce tariffs and non-tariff barriers, promoting greater market access for goods and services. However, differences in agricultural subsidies, intellectual property protection, and data localization have often stalled progress. The Trade Policy Review Mechanism of the WTO plays a crucial role in monitoring and evaluating the trade policies of both countries. Agricultural trade between India and the U.S. is particularly sensitive due to the large number of farmers dependent on agriculture in India. Issues such as market access for U.S. agricultural products, sanitary and phytosanitary measures, and domestic support programs in India have been contentious. The Agreement on Agriculture (AoA) under the WTO provides the framework for regulating agricultural trade, but its implementation remains a challenge. Historically, concerns about economic sovereignty and the impact on domestic industries have influenced India's approach to trade agreements. The debate often revolves around balancing the benefits of increased trade with the need to protect vulnerable sectors and maintain policy autonomy. The role of parliamentary oversight and public consultation in trade negotiations is also a significant aspect of this process.

Latest Developments

Recent years have seen increased scrutiny of trade agreements worldwide, with a focus on ensuring fair trade practices and protecting domestic industries. The rise of protectionist sentiments in some countries has led to trade disputes and renegotiations of existing agreements. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) are examples of major trade agreements that have reshaped global trade dynamics. India's approach to trade agreements has become more cautious, with a greater emphasis on protecting its agricultural sector and promoting self-reliance. The government has been actively pursuing bilateral trade agreements with various countries while also focusing on strengthening its domestic manufacturing capabilities through initiatives like Make in India. The role of the Ministry of Commerce and Industry is crucial in formulating and implementing trade policies. The ongoing debate on agricultural subsidies and market access continues to be a key challenge in India-U.S. trade relations. Issues such as the U.S. concerns over India's minimum support prices (MSP) for agricultural products and India's concerns over U.S. agricultural subsidies remain unresolved. The future of India-U.S. trade relations will depend on the ability of both countries to address these concerns and find mutually beneficial solutions. Looking ahead, the focus is likely to be on deepening economic cooperation in areas such as technology, innovation, and digital trade. The development of a robust framework for data protection and cross-border data flows will be essential for fostering greater trade and investment between the two countries. The role of multilateral institutions like the WTO in resolving trade disputes and promoting a rules-based trading system will also be critical.

Frequently Asked Questions

1. What are the key concerns raised by the CPI(M) regarding the India-U.S. trade deal that are relevant for the UPSC Prelims exam?

The CPI(M) has raised concerns about the potential negative impact on Indian farmers, particularly apple, cotton, and soybean growers, due to zero-tariff access for U.S. agricultural exports. They also worry about the dismantling of non-tariff barriers and the rolling back of farm support and subsidies. Remember these points as potential areas for MCQ-based questions.

Exam Tip

Focus on the potential impact on the agricultural sector and the concept of tariff and non-tariff barriers for the Prelims exam.

2. What is meant by 'economic sovereignty' in the context of the CPI(M)'s criticism of the India-U.S. trade deal?

In this context, 'economic sovereignty' refers to India's ability to make independent economic decisions without undue influence or pressure from other countries, in this case, the U.S. The CPI(M) suggests that the trade deal compromises this sovereignty by granting significant concessions to the U.S., potentially harming domestic industries and farmers.

3. How might the India-U.S. trade deal, as criticized by the CPI(M), affect common citizens, and how would you analyze this impact in a UPSC interview?

The deal could affect common citizens through its impact on farmers' incomes and the availability/pricing of agricultural products. If Indian farmers face losses due to increased competition from U.S. imports, this could lead to rural distress and potentially affect food prices. In an interview, I would analyze both potential benefits (e.g., access to cheaper goods) and costs (e.g., impact on livelihoods) while acknowledging the complexities and uncertainties involved.

4. What are tariff and non-tariff barriers, and why are they important in the context of the India-U.S. trade deal?

Tariff barriers are taxes or duties imposed on imported goods, while non-tariff barriers are restrictions like quotas, regulations, or standards that make it difficult for foreign products to enter a market. The CPI(M)'s concern is that India has agreed to reduce both, giving U.S. products an advantage and potentially harming Indian businesses.

5. According to the provided information, why is the India-U.S. trade deal in the news recently?

The India-U.S. trade deal is in the news because the CPI(M) has strongly criticized it, alleging that it threatens India's economic security and sovereignty and will negatively impact Indian farmers. This criticism has brought the details and potential consequences of the deal into public discussion.

6. How can understanding the CPI(M)'s perspective on the India-U.S. trade deal help in writing a balanced answer in UPSC Mains?

Understanding the CPI(M)'s perspective provides a critical viewpoint on the potential downsides of the trade deal, particularly concerning the agricultural sector and economic sovereignty. Incorporating this perspective, along with potential benefits, allows for a more nuanced and balanced answer, demonstrating a comprehensive understanding of the issue.

Practice Questions (MCQs)

1. Consider the following statements regarding the Communist Party of India (Marxist) [CPI(M)]'s criticism of the India-U.S. trade deal: 1. CPI(M) alleges the trade deal grants zero-tariff access to several U.S. agricultural exports. 2. CPI(M) is concerned about the potential dismantling of non-tariff barriers on food and agricultural goods. 3. CPI(M) supports the trade deal, viewing it as beneficial for Indian farmers. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statements 1 and 2 are correct as per the news summary. The CPI(M) has criticized the India-U.S. trade deal, alleging that it grants zero-tariff access to several U.S. agricultural exports and expresses concern over the potential dismantling of non-tariff barriers. Statement 3 is incorrect because the CPI(M) does NOT support the trade deal; they strongly criticize it.

2. In the context of international trade agreements, what does 'zero-tariff access' typically imply?

A.Goods can be imported or exported without any taxes or duties.
B.Goods are subject to a fixed tariff rate regardless of their origin.
C.Goods are only allowed to be traded between specific countries.
D.Goods are exempt from non-tariff barriers but still subject to tariffs.

Show Answer

Answer: A

Zero-tariff access means that goods can be imported or exported without any taxes or duties. This promotes trade between countries by reducing the cost of goods. Options B, C, and D are incorrect because they describe different trade scenarios involving tariffs or restrictions.

3. Which of the following is NOT typically considered a 'non-tariff barrier' in international trade?

A.Import quotas
B.Sanitary and phytosanitary measures
C.Subsidies to domestic producers
D.Customs duties

Show Answer

Answer: D

Customs duties are tariffs, which are a direct tax on imports. Import quotas, sanitary and phytosanitary measures, and subsidies to domestic producers are all examples of non-tariff barriers. Non-tariff barriers are restrictions on trade that do not involve taxes or duties.