Counterview: India’s CPI(M) Slams EU Free Trade Deal as Elitist and Harmful, Demands Parliamentary Scrutiny
The Communist Party of India (Marxist) has strongly condemned the India–European Union Free Trade Agreement signed on January 27, laeblling it a “wholesale surrender” of the country’s economic interests to European powers and a move that will primarily benefit elites at the cost of Indian workers, farmers and small producers.
In a scathing statement, the CPI(M) Polit Bureau said the deal entails drastic tariff cuts across key sectors, including automobiles, steel, pharmaceuticals, wines and spirits, processed foods, and meat.
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| Representational Image via CPIMSpeaks |
“These cuts will devastate India’s domestic industries,” the party said.
“The EU itself projects that its exports to India will grow by over 107% in the coming years.
Such steep tariff reductions will severely and adversely affect India's automobile, pharmaceutical and machinery industries, with direct consequences for employment.”
It argued that cheaper imported goods would flood Indian markets, undermining domestic production and jeopardising jobs.
“The reduced cost of cars and wines will only benefit the affluent,” the CPI(M) said, adding that this “FTA wrecks the livelihoods of workers, farmers and common people.”
The statement criticised the Modi government for repeatedly prioritising foreign investor interests and elite consumption over the well-being of India’s working classes and agrarian sector.
The party also raised political objections to the deal’s geopolitical dimension, particularly its alignment with the India-Middle East-Europe Economic Corridor (IMEC), which includes Israel’s Haifa port as a key node.
“At a time when the world is demanding Israel be declared an apartheid state and face sanctions for its genocidal aggression in Gaza, the Indian government is choosing to deepen ties with Israel through this FTA,” the CPI(M) said, calling the move “deplorable.”
The Polit Bureau demanded that the full text of the agreement be placed before Parliament during the upcoming budget session and subjected to a thorough debate.
It reiterated its longstanding opposition to the government’s free trade agenda, which it argued has consistently undermined national interests.
“All anti-people FTAs signed by this government must be rescinded, and the interests of farmers, workers and the people must be protected,” it said.
This intervention comes moments after Prime Minister Narendra Modi and European Commission President Ursula von der Leyen jointly announced the conclusion of the FTA during the EU-India summit in Delhi.
Describing the agreement as a “strategic choice,” von der Leyen hailed it as a foundation for stable rules and long-term investment, citing benefits for both economies across trade, research, innovation and skilled mobility.
Modi called the agreement “a new blueprint for shared prosperity” and emphasised the historic nature of the deal, which unites two major democratic powers in a global partnership.
While the government has positioned the FTA as a win for India’s long-term growth and export potential, the CPI(M)’s statement signals domestic opposition and ideological divergence over trade liberalisation and economic globalisation.