Chidambaram Questions US-India Trade Framework as Unbalanced and Opaque
Former finance minister P Chidambaram has launched a sharp critique of the United States-India joint statement on the interim trade deal, released on February 6, 2026. He asserts that what the Indian government has celebrated as a diplomatic victory is, in reality, an unclear and one-sided framework rather than a substantive agreement.
Framework Details and Criticisms
Chidambaram emphasized that the joint statement explicitly states "no Bilateral Trade Agreement (BTA) has been reached" and that both nations have only agreed on a "framework for an interim agreement" to advance broader BTA negotiations initiated in February 2025. He argued that the language is so complex that without closely examining the referenced US executive orders, it is "not possible to understand the exact nature of the commitments undertaken by the US." According to him, the disclosed commitments indicate a deal "heavily tilted in favour of the U.S." rather than a balanced pact.
He questioned the substance of the framework, noting that India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products. In contrast, the United States will apply a reciprocal tariff rate of 18 percent on a broad swathe of Indian exports, including textiles, leather, organic chemicals, and certain machinery. Removal of these tariffs is contingent on the successful conclusion of the interim agreement.
Additional Concerns and Political Reactions
Chidambaram also pointed out that US tariffs on items such as steel, copper, and aluminum will largely continue, subject to separate provisions in the framework. He highlighted that an ongoing US trade investigation under Section 232 continues to loom over the pact. "How is this 'framework for an Interim Agreement' a matter of celebration?" he asked, challenging the government's positive narrative.
Congress General Secretary Jairam Ramesh amplified these concerns in his own statement, portraying the revealed contours of the deal as detrimental to India's economic interests. Ramesh stated that the framework commits India to cease importing oil from Russia, with the United States indicating that a 25 percent penalty could be reimposed if India buys Russian oil directly or indirectly.
He contended that India will reduce import duties in ways that benefit US farmers but harm Indian farmers, and warned that India's annual imports from the United States will triple, effectively erasing the country's long-standing goods trade surplus with Washington. Ramesh further expressed deep uncertainty over the future of India's services exports, particularly IT, saying the framework leaves India's service exporters "in limbo," while Indian goods could face higher effective duties than before in the US market.
Government Stance and Broader Implications
Dismissing the pomp surrounding the announcement, Ramesh wrote that "all the hugs and photo-ops have not amounted to much. Namaste Trump has scored over Howdy Modi. Dost Dost Na Raha!" — alluding to the symbolic optics of the visit and the perceived political triumph portrayed by the government.
The United States-India Joint Statement describes the framework as a step toward a broader BTA, reaffirming commitments to reciprocal and mutually beneficial trade. It outlines cooperation on tariff reductions, non-tariff barriers, digital trade rules, market access, and resilient supply chains. The statement also includes India's intention to purchase a substantial volume of US goods—such as energy products, aircraft parts, technology products, and precious metals—over the next five years.
