Rahul Gandhi Accuses PM Modi of Being ‘Compromised’ in India-US Trade Deal

Published on: 04-02-2026
Rahul Gandhi addresses reporters outside Parliament on India-US trade deal

New Delhi – Congress leader and Leader of Opposition Rahul Gandhi on Tuesday sharply attacked Prime Minister Narendra Modi over the India-US trade deal announced just a day earlier. He said the Prime Minister had buckled under American pressure and “sold the hard work of Indian farmers.” Gandhi claimed Modi was “compromised” and afraid to let him speak in Parliament.

The row broke out hours after US President Donald Trump said he had spoken to Modi on February 2 and agreed to cut tariffs on Indian goods. Trump said the US would lower its reciprocal tariff from 25 per cent to 18 per cent and remove an extra 25 per cent penalty that was put on India for buying Russian oil. In return, Trump claimed India would stop buying Russian oil, cut its own tariffs on American goods to zero, and buy over 500 billion dollars worth of US products.

Prime Minister Modi thanked Trump for the tariff cut but did not mention the other parts of the deal in his public statement.

What the Trade Deal Means

For months, Indian exporters had faced high duties in the US market. The extra 25 per cent penalty, added in August 2025, made the total tariff as high as 50 per cent on many goods. The new 18 per cent rate brings India in line with several other Asian countries.

Donald Trump and Narendra Modi handshake on US-India trade deal
Modi and Trump Agree on Trade Deal

Trump said the deal would help American farmers, energy companies and manufacturers. He spoke about more sales of US oil, coal, defence items and farm products to India.

Indian officials, however, said the final details were still being worked out. Commerce Minister Piyush Goyal told reporters that agriculture and dairy sectors — very important for millions of Indian farmers — had been fully protected. He said a joint statement from both countries would come out soon with clear terms.

“No compromise has been made on the interests of our farmers,” Goyal said. “Sensitive sectors remain safe.”

Rahul Gandhi’s Strong Words Outside Parliament

Rahul Gandhi was not allowed to speak fully inside the Lok Sabha when he tried to quote from an unpublished book by former Army chief General M.M. Naravane. The government objected strongly, and the House was adjourned several times.

Speaking to reporters outside, Gandhi said the real reason for stopping him was fear of the bigger issue — the trade deal.

“The trade deal was stuck for four months. Nothing changed. Suddenly, yesterday evening, Modi signed it,” he said. “There is immense pressure on Narendra Modi. His image bubble, built with thousands of crores, can burst any time.”

Gandhi called Modi “compromised” and said he had sold the blood and sweat of Indian farmers.

He pointed to two “pressure points”:

  1. The case against industrialist Gautam Adani in the United States. Gandhi said there were over 1,100 cases linked to Adani, and they were actually aimed at Modi’s financial structure.
  2. The Jeffrey Epstein files. He said more material was still to be released, and the US was using it to put pressure on Modi.

“The Adani case is not just against Adani. It is against Modi because Adani is his financial backbone,” Gandhi said. “The Epstein files have more that concerns India. These are the two pressure points. The Prime Minister has been compromised.”

He also linked the Naravane memoir issue to the same fear. The book, which is still under review and not published, has excerpts that appeared in a magazine. Gandhi wanted to read them in Parliament but was stopped.

Government’s Reply

BJP leaders hit back hard. Union Minister Anurag Thakur asked if the Congress was standing with India’s interests or against them.

“Are the Congress and the opposition with the country or against it?” he said. “They are not letting Parliament work. They celebrated when America put tariffs on India. Now they are attacking a deal that helps Indian exporters.”

Government sources said the deal would bring more exports, better market access for Indian goods, and no harm to farmers. They pointed out that Adani and Reliance shares rose on Tuesday after the announcement, showing market confidence.

How the Tariff Fight Started

The trouble began last year when Trump returned to power and raised tariffs on many countries. India was hit hard because it continued to buy discounted Russian oil after the Ukraine war. The US saw this as helping Russia.

India said it needed the cheap oil to control fuel prices at home. Talks went on for months but got stuck on farm products, dairy, and non-tariff barriers.

The breakthrough came after India signed trade deals with the UK and the European Union. Trump did not want to be left behind, sources said.

Market Reaction

Stock markets reacted positively. Adani group companies and Reliance shares went up. Exporters in textiles, gems, jewellery, and engineering goods hoped for better days.

Farmers’ groups and some opposition leaders worried about cheaper American farm imports coming in later.

Why the Epstein and Adani Angle Matters

The US had indicted Adani and some of his companies in a bribery case last year. The matter is still in court. Rahul Gandhi has often said the Modi government is protecting Adani.

On the Epstein files, some old emails and documents have mentioned names from many countries. Rahul Gandhi said more damaging material was still hidden and the US was using it.

The government has never accepted these claims. It calls them baseless and politically motivated.

Parliament Chaos and the Naravane Memoir

The book by General Naravane, titled Four Stars of Destiny, is still awaiting clearance. Parts of it appeared in The Caravan magazine. They talk about the 2020 Ladakh stand-off with China and decisions taken at that time.

Rahul Gandhi wanted to read those parts to question the government’s handling of the border issue. Defence Minister Rajnath Singh, Home Minister Amit Shah and others stopped him, saying an unpublished book could not be quoted in the House.

Speaker Om Birla referred to rules of the House and asked Gandhi not to use unverified sources.

This is the second day in a row that the Lok Sabha saw major disruption over the same issue.

What Happens Next

The full text of the trade deal is not out yet. Officials say it will be shared soon. Opposition parties have demanded a discussion in Parliament.

The Budget Session is on, and more heated debates are expected.

The deal brings immediate relief to exporters but has opened a new round of political fighting. Both sides are digging in.

Rahul Gandhi has made his point clear: he believes the Prime Minister gave in because of personal pressure. The government says the deal is good for India and the opposition is just trying to create confusion.

Frequently Asked Questions

Q1: What exactly changed in the tariff rates?

US tariffs on many Indian goods will now be 18 per cent instead of 25 per cent (reciprocal tariff). The extra 25 per cent penalty for Russian oil purchases has also been removed. So the effective rate has come down sharply.

Q2: Did India really agree to stop buying Russian oil?

President Trump said yes, but Prime Minister Modi’s statement did not mention it. Government sources say the final terms are still being finalised.

Q3: Will American milk and farm products flood Indian markets?

Commerce Minister Piyush Goyal has clearly said no. Agriculture and dairy sectors are protected. India has always kept these sensitive areas safe in trade talks.

Q4: What is the Adani case Rahul Gandhi is talking about?

The US has filed a bribery case against Gautam Adani and his companies. The case is going on in American courts. Rahul says it puts pressure on the Modi government.

Q5: Are there really Epstein files that mention Modi?

Some old documents have been released over the years. Rahul Gandhi claims more material is still hidden and is being used as leverage. The government has dismissed these claims.

Q6: Why was Rahul Gandhi stopped from speaking in Parliament?

He tried to quote from General Naravane’s unpublished memoir. The government said an unpublished book cannot be used as a source in the House.

Q7: Who benefits from this deal?

Indian exporters get lower duties in the US market. American companies hope to sell more energy, defence and other goods to India. Farmers on both sides are watching carefully.

Aawaaz Uthao: We are committed to exposing grievances against state and central governments, autonomous bodies, and private entities alike. We share stories of injustice, highlight whistleblower accounts, and provide vital insights through Right to Information (RTI) discoveries. We also strive to connect citizens with legal resources and support, making sure no voice goes unheard.

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