POLITICS

‘Namaste Trump beats Howdy Modi’: Congress takes swipe at India–US trade pact

India’s goods exports to US will face higher duties, with uncertainty looming over services exports, the Congress leader says

Congress general secretary in charge of communications Jairam Ramesh.
Congress general secretary in charge of communications Jairam Ramesh. IANS

The Congress on Saturday mounted a sharp attack on the government over the India–US joint statement announcing a framework for an interim trade agreement, claiming it is conspicuously “silent” on key details and mocking Prime Minister Narendra Modi for what it described as hollow diplomacy built on symbolism rather than substance.

Taking aim at the optics that have marked recent India–US engagements, the Opposition party said that “all the hugs and photo-ops have not amounted to much,” with Congress general secretary in-charge of communications Jairam Ramesh quipping that “Namaste Trump has scored over Howdy Modi.” He also invoked the iconic line “Dost dost na raha” from the 1964 Hindi film Sangam to underscore what he portrayed as a lopsided outcome.

In a post on X, Ramesh said the joint statement issued by India and the United States was notably short on specifics. “But from what has been revealed, it is clear that India will no longer import oil from Russia,” he said, adding that Washington has separately announced that a 25 per cent penalty could be reimposed if India resumes buying Russian oil, directly or indirectly.

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Ramesh further claimed that India has agreed to slash import duties to benefit American farmers, “at the cost of Indian farmers”, while warning that the country’s annual imports from the US would triple, wiping out India’s long-standing goods trade surplus. He also flagged continued uncertainty over India’s exports of IT and other services to the US and said Indian goods exports would face higher duties than before.

“India’s exports of goods to the US will face higher duties than earlier. There will be great uncertainty on services exports,” Ramesh said, reiterating that the political theatre surrounding India–US ties had delivered little tangible benefit. “Namaste Trump has scored over Howdy Modi,” he said, signing off with the refrain, “Dost dost na raha”.

Earlier in the day, India and the United States announced that they had reached a framework for an interim trade agreement aimed at boosting two-way trade through reciprocal reductions in import duties on a range of goods. The joint statement said both sides would “promptly” implement the framework and work towards concluding a mutually beneficial Bilateral Trade Agreement (BTA).

Reacting to the development, Prime Minister Narendra Modi welcomed the pact, saying it would strengthen the ‘Make in India’ initiative by opening up new opportunities for farmers, entrepreneurs and small businesses, while generating employment for women and young people.

“Great news for India and USA! We have agreed on a framework for an Interim Trade Agreement between our two great nations,” Modi said in a post on X, thanking US President Donald Trump for his “personal commitment” to strengthening bilateral ties.

According to the interim deal, the Trump administration has removed the 25 per cent additional import duty imposed on Indian goods last August over New Delhi’s purchases of Russian oil, citing “significant steps” taken by India and its commitment to stop directly or indirectly importing oil from Moscow.

The agreement is expected to open up a USD 30 trillion market for Indian exporters, particularly MSMEs, farmers and fishermen, with US duties on Indian goods set to come down to 18 per cent from an earlier level of 50 per cent.

Under the framework, India will eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, as well as several additional products.

The joint statement said both sides would move swiftly to operationalise the framework, signalling a renewed push towards a broader trade pact even as political debate over its implications gathers momentum at home.

With PTI inputs

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