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Indo-US Trade Deal Sparks Controversy in India

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  Published in Politics and Government on Tuesday, February 17th 2026 at 0:25 GMT by The New Indian Express
      Locales: INDIA, UNITED STATES

New Delhi, February 17th, 2026 - A proposed Indo-US trade deal is sparking significant controversy and raising serious concerns about India's economic sovereignty, with the Communist Party of India (Marxist) (CPM) leading a vocal opposition. The CPM has vehemently condemned the deal as a direct attack on the nation's independent economic policy and the welfare of its citizens, echoing growing anxieties across various sectors of Indian society.

The trade agreement, currently under negotiation between Indian and US officials, aims to deepen economic ties and increase bilateral trade. However, the CPM argues that the current draft disproportionately benefits US corporate interests while potentially devastating Indian industries, farmers, and workers. This isn't merely a disagreement over specific clauses; the CPM views the deal as a fundamental threat to India's ability to chart its own economic course.

"This trade deal, as it is being shaped, is a clear attempt to undermine India's economic independence and policy space," a recent press release from the CPM Polit Bureau stated. "It serves the interests of US multinational corporations and ignores the needs of our farmers, workers, and small businesses."

The core of the CPM's critique lies in several key areas. Intellectual property rights (IPR) are a major sticking point. The party fears the deal will enforce stricter IPR regulations, leading to higher costs for essential medicines - a critical concern for public health access in India. Concerns center around potentially extending patent protections on pharmaceuticals, hindering the production of affordable generic drugs and impacting access to life-saving treatments for millions. This aligns with longstanding debates about balancing innovation with accessibility, particularly in the pharmaceutical sector.

Data localization is another significant concern. The CPM worries that relaxing India's data localization requirements - rules that mandate storing sensitive data within the country - would compromise the privacy and security of Indian citizens' data. In an era of increasing cyber threats and data breaches, the party argues that safeguarding citizen data is paramount and should not be sacrificed for the sake of trade liberalization. The implications extend beyond individual privacy, potentially impacting national security.

The agricultural sector is also bracing for potential hardship. The CPM warns that any concessions made regarding agricultural subsidies could severely harm Indian farmers, who already face substantial economic challenges including volatile market prices, climate change impacts, and access to credit. The party points to historical examples of trade liberalization leading to increased competition from subsidized US agricultural products, potentially displacing Indian farmers and exacerbating rural distress.

This opposition isn't confined to the CPM. Farmer groups, labor unions, and numerous civil society organizations are increasingly voicing similar concerns, forming a broad coalition against the proposed agreement. Protests have been held in several major cities, and online campaigns are gaining momentum. These groups highlight the potential for job losses in domestic industries, increased reliance on imports, and the erosion of India's self-reliance.

Furthermore, the CPM is demanding greater transparency in the negotiation process. The party is calling for a full parliamentary debate on the implications of the trade deal, arguing that such a significant agreement requires thorough scrutiny and public input before being finalized. They accuse the government of conducting negotiations in secrecy, without adequately addressing concerns raised by stakeholders.

The current situation echoes previous trade negotiations where similar concerns about sovereignty and national interest were raised. Critics point to past agreements that they claim prioritized foreign interests over domestic needs. This historical context fuels the skepticism surrounding the current Indo-US deal.

Looking ahead, the CPM has pledged to continue mobilizing public opinion against the agreement, organizing protests, and lobbying policymakers to protect India's economic sovereignty. The coming months are likely to see increased political pressure on the government to address these concerns and ensure that the trade deal, if finalized, truly serves the interests of all Indians, not just multinational corporations. The debate highlights the complex balancing act between fostering international trade and safeguarding national interests in a rapidly globalizing world.