As Lok Sabha proceedings began, Opposition members shouted slogans against Prime Minister Narendra Modi, and the Lok Sabha Speaker Om Birla adjourned the House. Several Opposition MPs, including senior Congress lawmaker K C Venugopal, moved adjournment motions seeking a discussion on the trade deal between India and the US. Rajya Sabha saw opposition members walk out in protest after sloganeering over how the deal was announced and its implications for farmers and national interest.

Congress MP Manish Tewari said, “The trade deal, which has been put in the public domain by Trump, raises very serious questions… If the government thinks they have a historic deal, we demand they should come and discuss it in Parliament.”

Speaking outside Parliament on the US-India trade deal, Leader of Opposition (LoP) Rahul Gandhi says PM Narendra Modi has been "compromised", and referred to the case against Gautam Adani in the US, alleging there is pressure on PM Modi. Details about the deal will be coming out soon, then the country will exactly know what actually happened.

Congress MP KC Venugopal submitted an Adjournment Motion notice in the Lok Sabha seeking discussions on India-US trade deals writing, “This House do now adjourn to discuss a matter of urgent public importance, namely the serious concerns arising out of the reported trade deal between India and the United States, which has been publicly announced by the President of the United States, Donald Trump, and not by the Government of India. The US President has claimed that the trade deal was concluded at the request of the Hon’ble Prime Minister of India and has further stated that India has agreed to reduce tariff and non-tariff barriers to zero, effectively opening Indian markets to US goods. Such a move is likely to have far-reaching adverse consequences for Indian industries, traders, MSMEs, and farmers.”

From the government side, Union Minister J P Nadda, the leader of the House in the Rajya Sabha, said that government will make a suo motu statement in Parliament and is ready to answer all questions about the deal. Ruling NDA partners have supported the deal.

The storm over the deal is still in the making. However, it is already known by now, that India, through its Budget 2026-27, has quietly met U.S. trade demands through tariff rationalisation, sectoral openings, and strategic incentives. Opposition alleges that the Union Budget 2026-27 was tailored to benefit the United States and to appease Trump and to protect the “friends of the government”. Budget has already been criticised that it has little for the common people of India.

India’s budget for the year 2026-27 has in reality goes beyond merely a fiscal document, and used by the Modi government as a diplomatic instrument. It quietly but decisively addressed several long-standing US trade demands.

For years, the U.S. Trade Representative (USTR) had criticised India for high import tariffs, limited market access, and not-tariff barriers. The Budget became New Delhi’s instrument to signal flexibility — without announcing a formal trade concession.

One of Washington’s biggest complaints was India’s elevated customs duties. The Budget cut or removed duties on over two dozen items, including: Aircraft parts and components; Defence and civil aviation MRO inputs; Medical devices and life-saving drugs; and Capital goods for clean energy and battery manufacturing. These reductions directly benefit U.S. exporters in aerospace, defence, pharmaceuticals, and clean energy — sectors repeatedly flagged by U.S. negotiators.

It is through the budget India has opened strategic sectors for US firms. It should be recalled that the U.S. has long pushed for deeper access to India’s strategic and high-technology sectors. Union budget has either zero or concessional duty on: Aircraft maintenance and training equipment; Capital goods for lithium-ion batteries and energy storage; and Critical mineral processing equipment. Apart from these the budget has extended customs exemptions for nuclear power projects until 2035. These measures lower entry barriers for U.S. defence, energy, and high-tech manufacturers, aligning with American demands for predictable, long-term access.

On the consumer side tariff rationalization, India has also addressed criticism that its tariff regime discouraged imports. Customs duty on all dutiable personal imports was halved from 20% to 10%. Though modest in revenue terms, this sent a political signal of tariff rationalisation, reinforcing India’s willingness to soften protectionist perceptions.

India budget has facilitated US Energy and defence sales. The Budget complemented broader trade commitments by aligning policy with India’s pledge to increase purchases of U.S. goods. Lower duties and clearer rules support imports of: U.S. crude oil and LNG; Defence platforms and aircraft; and High-end industrial and telecom equipment. These steps dovetail with India’s trade-deal commitment to boost U.S. sourcing in energy and defence.

The budget has tried to balance concessions with export support. To offset domestic concerns, the Budget simultaneously strengthened export facilitation: Easier duty-free import of inputs for export-oriented sectors; Extended timelines for export obligations; and Faster customs clearances and longer validity for advance rulings. This helped shield Indian exporters who had been hit by earlier U.S. tariff hikes, ensuring domestic industry buy-in.

Shortly after the Budget, the U.S. announced it would: Cut tariffs on Indian goods from punitive levels (25–50%) to about 18%; and Restore predictability to India-U.S. trade flows.

In return, India committed to: Greater market access for U.S. goods; Higher imports of U.S. energy, defence equipment, and aircraft; and Strategic alignment on supply chains and sourcing. (IPA Service)