Congress MP Jairam Ramesh criticised the newly announced India-US trade deal framework on February 7, raising concerns about India’s oil purchases from Russia after the White House said India had agreed to stop importing Russian oil.
In a post on X (formerly Twitter), Jairam Ramesh said lowering import duties on agricultural products would help American farmers but hurt Indian farmers. He wrote: “The United States-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.”
Criticism of Modi government and trade impact
He also took a swipe at Prime Minister Narendra Modi, suggesting that diplomatic optics had not delivered real gains for India. He said: “India will slash import duties to help American farmers at the cost of Indian farmers. India’s annual imports from the USA will triple, wiping out our longstanding goods trade surplus”.
Adding to it he mentioned that, “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. All the hugs and photo-ops have not amounted to much. Namaste Trump has scored over Howdy Modi. Dost dost na raha (A friend is friend no more).”
These remarks came after India and the United States announced a framework for an interim trade agreement aimed at reciprocal and mutually beneficial trade. The joint statement said both countries remain committed to continuing talks on a broader Bilateral Trade Agreement (BTA), which was launched by US President Donald Trump and PM Modi on February 13, 2025. The full agreement is expected to include wider market access and help strengthen supply chains.
Tariffs on Indian goods entering the US
As per the joint statement, the US will impose a reciprocal tariff of 18 per cent on goods coming from India. This will apply to products such as textiles and apparel, leather and footwear, plastic and rubber items, organic chemicals, home decor, handicrafts, and some machinery. At the same time, the US will remove tariffs on certain aircraft and aircraft parts imported from India that were earlier imposed on national security grounds.
The statement also said India will remove or cut tariffs on all US industrial goods and many food and agricultural products. These include dried distillers’ grains (DDGs), red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, along with other products.
In addition, India plans to buy goods worth $500 billion from the US over the next five years. These purchases will include energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal.