Rahul Gandhi Calls India–US Trade Deal a 'Wholesale Surrender' in Budget Debate; Government Seeks to Expunge Remarks
India’s Parliament saw a fresh political clash on Wednesday, February 11, after Leader of Opposition Rahul Gandhi used the Lok Sabha debate on the Union Budget 2026–27 to attack the India–US interim trade deal and allege that it compromises India’s interests on data, energy security and farming.
This prompted the government to accuse him of making unsubstantiated claims and to signal action to remove or expunge parts of his remarks from the House record.
 |
| Image Source: Who_Care on X |
He alleged that the interim deal represented a “wholesale surrender,” claiming it involved “free data flow” to the United States, no data localisation, limits on digital taxation, and no requirement for source code disclosure, while also asserting that India’s tariffs had risen from 3% to 18% even as US tariffs fell from 16% to 0%.
He further alleged that the deal would hurt Indian farmers by opening the door to “mechanised” American agriculture, and said India’s energy security would be constrained by US conditions on oil purchases.
During the speech, Parliamentary Affairs Minister Kiren Rijiju repeatedly objected, telling the House that Gandhi’s claims carried “serious connotations” and demanding that he authenticate his allegations.
Rahul Gandhi said in the House that he would authenticate his statements and also told reporters outside Parliament that he had data and would authenticate it, referring to US Department of Justice material while naming Union minister Hardeep Singh Puri and businessman Anil Ambani in connection with the “Epstein files.”
The Chair intervened to caution Rahul Gandhi against naming individuals not present in the House.
Rijiju later said the ruling alliance would issue a notice seeking expunging of “whatever lies Rahul Gandhi has spoken,” and asserted that Rahul Gandhi “cannot authenticate them because he lied,” according to statements attributed to him in the live updates provided.
The day’s confrontation unfolded amid continued Opposition protests in the Lok Sabha, including disruptions during Question Hour, slogan-shouting of “we want justice,” and a walkout by Opposition MPs around 11.30 am, according to the same timeline.
Separately, Union Finance Minister Nirmala Sitharaman, replying to the Budget debate, highlighted headline spending and devolution figures.
She told the Lok Sabha that the Budget raised public capital expenditure to Rs 12.2 lakh crore for FY 2026–27, and that “effective” capital expenditure—including allocations for states and union territories—would be Rs 17.1 lakh crore, which she said amounted to 4.4% of GDP.
Sitharaman also said 41% of devolvable taxes had been transferred to states in line with Finance Commission recommendations, and put total resources to be transferred to states in 2026–27 at Rs 25.44 lakh crore, describing it as an increase of Rs 2.70 lakh crore.
In her intervention, Sitharaman also addressed claims raised during the debate about data and technology, saying Gandhi’s assertion that India’s data was going to foreign countries was “not correct,” and said the government was pushing artificial intelligence education “for the masses.”
On infrastructure, she referred to an east–west freight corridor and said the Budget mention of Dankuni related to a new dedicated freight corridor from Dankuni to Surat, rejecting claims that it was a re-announcement of an earlier proposal.
The Budget Session, which began on January 28, is scheduled to adjourn for a recess on February 13 and reconvene on March 9, with the full session slated to conclude on April 2, according to the live updates you provided.
Watch Rahul Gandhi's full Lok Sabha speech here:
LIVE: Discussion on the Union Budget | 18th Lok Sabha https://t.co/1VcucD9fnD
— Rahul Gandhi (@RahulGandhi) February 11, 2026