Finance Minister Nirmala Sitharaman on Wednesday strongly defended the India-US interim trade deal and the Union Budget for 2026-27 in the Lok Sabha, asserting that Prime Minister Narendra Modi “always acts in India’s interest.”
Responding to Leader of the Opposition Rahul Gandhi’s “Bharat Mata sold” remark attacking the trade pact, Sitharaman said the Centre’s approach to trade negotiations prioritises national interest and safeguards domestic sectors, including agriculture.
“Prime Minister Narendra Modi will always act in India’s interest whereas it was the Congress which surrendered before WTO, sold the poor, farmers during its regime when it signed the Bali agreement in 2013,” she said, referring to the first comprehensive multilateral trade agreement concluded by the World Trade Organization.
“Those who wanted to negotiate with Pakistan at Sharm-el-Sheikh are now giving us suggestions on negotiations. It is the Congress which sold the government, farmers, the poor and the nation. It was you who hyphenated India with Pakistan,” she said. She argued that recent agreements are calibrated to expand market access for Indian exporters while ensuring protections for vulnerable segments such as farmers and small producers.
Highlighting Budget measures aimed at boosting trade and manufacturing, Sitharaman announced that eligible Special Economic Zone (SEZ) units will be allowed, on a one-time basis, to sell goods in the Domestic Tariff Area at concessional duties. The move, she said, is designed to ease inventory pressures and improve liquidity for SEZ manufacturers affected by global trade disruptions. Complementing this, she noted, customs reforms will promote export competitiveness through a trust-based compliance framework and simplified procedures.
To support micro, small and medium enterprises (MSMEs) and artisans, the government will remove the `10-lakh value cap on courier exports, enabling small exporters to access overseas markets more easily. A unified digital clearance window integrating multiple approvals is slated to go live by April 2026, streamlining trade processes.
On welfare and agriculture, Sitharaman underlined that the Budget provides Rs 2.27 lakh crore for food subsidies to support around 800 million beneficiaries. The Ministry of Food Processing Industries has been allocated Rs 4,064 crore, with a strong push for the PM Formalisation of Micro Food Processing Enterprises scheme to promote value addition and rural entrepreneurship. An additional Rs 350 crore has been earmarked for “support for high value agriculture,” alongside targeted initiatives for crops such as coconut, cashew, cocoa and sandalwood, signalling a shift toward diversification and export-oriented farm output.
Addressing federal fiscal concerns, she cited the 16th Finance Commission’s findings that from 2018-19 to 2022-23, the Centre’s devolution to states matched recommended levels each year. For 2026-27, states’ share is estimated at Rs 25.44 lakh crore — Rs 2.7 lakh crore higher than the previous year — adding that cesses and surcharges are also channelled to states for development works beyond the constitutionally mandated 41% tax devolution.
On technology and data sovereignty, Sitharaman said incentives for domestic cloud and data centre infrastructure will help keep data within India while creating jobs, with `1,000 crore allocated to the IndiaAI Mission for 2026-27.