 warns, citing threats to domestic industry and policy autonomy.){kind=link}
The proposed India-US trade pact poses serious risks to India’s economy and national sovereignty, the Communist Party of India (Marxist) has warned, raising sharp objections to what it described as an unequal and corporate-driven agreement. The party said the India-US trade pact risk to economy cannot be ignored, especially when key sectors, domestic industries, and policy autonomy face potential dilution.
In a statement, CPI(M) leaders argued that such trade agreements often prioritise the interests of multinational corporations over farmers, workers, and small producers. They cautioned that India’s economic independence could weaken if strategic sectors open up without adequate safeguards.
The criticism adds a strong ideological dimension to the growing national debate on the proposed trade pact.
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India-US trade pact risk to economy, says CPI(M)
The CPI(M) said the India-US trade pact risk to economy lies in its potential to undermine domestic manufacturing and agriculture. According to the party, reduced tariffs and relaxed regulations could flood Indian markets with imported goods.
This situation, CPI(M) argued, would place Indian micro, small, and medium enterprises at a disadvantage. Therefore, local producers may struggle to compete with heavily subsidised foreign companies.
The party said such outcomes could lead to job losses and weaken self-reliant economic initiatives.
Sovereignty concerns at the core
Beyond economic impact, CPI(M) flagged serious concerns over national sovereignty. The party warned that trade agreements often restrict a country’s ability to frame independent policies.
According to CPI(M), clauses related to investment protection, dispute resolution, and intellectual property may limit Parliament’s authority to legislate in public interest. Therefore, the India-US trade pact risk to economy also extends to democratic decision-making.
The party said sovereignty does not only mean territorial integrity but also policy independence.
Impact on farmers and agriculture
CPI(M) leaders said Indian farmers could face severe consequences if agricultural markets open further under the trade pact. They argued that US agribusiness enjoys heavy state support and technological advantages.
If Indian agriculture faces direct competition without protection, farm incomes could suffer. Therefore, the party said food security and rural livelihoods remain at stake.
The CPI(M) added that previous trade liberalisation experiences have already shown negative effects on farmers.
Threat to public sector and labour rights
The party also expressed concern that the India-US trade pact risk to economy includes pressure on public sector enterprises. CPI(M) warned that commitments made under trade agreements often push privatisation and reduce government control.
Labour rights, the party said, may also weaken if regulatory standards come under pressure to attract foreign investment. As a result, workers could face job insecurity and reduced protections.
The CPI(M) said trade policy must strengthen, not dilute, labour welfare.
Criticism of corporate-driven trade model
CPI(M) criticised what it called a corporate-driven trade model that prioritises profits over people. The party argued that multinational corporations often shape trade agreements through lobbying.
Therefore, the India-US trade pact risk to economy reflects deeper structural issues in global trade governance. According to the party, such agreements widen inequality rather than promote inclusive growth.
CPI(M) called for trade policies that serve national development goals instead of corporate interests.
Reference to past trade experiences
The party cited past trade agreements as cautionary examples. CPI(M) said earlier liberalisation measures failed to deliver promised employment and industrial growth.
Instead, they argued, these policies increased imports and weakened domestic production. Therefore, the party urged caution before entering another major trade pact.
Learning from history, CPI(M) said, remains essential for sound policymaking.
Demand for transparency and debate
CPI(M) demanded full transparency on the terms of the proposed trade pact. The party said the government must place details before Parliament and the public.
Without open debate, CPI(M) warned, democratic accountability suffers. Therefore, they called for consultations with farmers’ groups, trade unions, and industry bodies.
The India-US trade pact risk to economy, they said, must be evaluated collectively rather than decided behind closed doors.
Opposition to investor-state dispute mechanisms
A key concern raised by CPI(M) involves investor-state dispute settlement mechanisms. The party said such provisions allow foreign companies to sue governments over policy decisions.
This, CPI(M) argued, undermines sovereignty and discourages public-interest regulation. As a result, governments may hesitate to enact social or environmental protections.
The party urged India to reject any clause that weakens judicial and legislative authority.
Strategic sectors and national interest
CPI(M) said strategic sectors such as defence, energy, digital infrastructure, and pharmaceuticals require strong national control. Opening these areas indiscriminately could pose long-term risks.
The India-US trade pact risk to economy, they argued, includes dependence on foreign technology and supply chains. Therefore, national interest must guide trade decisions.
The party stressed that economic strategy should prioritise resilience and self-reliance.
Political reactions and broader debate
CPI(M)’s statement has added momentum to opposition criticism of the trade pact. Other political voices have also sought clarity on terms and safeguards.
Supporters of the pact argue it could boost investment and exports. However, CPI(M) maintained that growth without sovereignty and equity remains unacceptable.
The debate highlights contrasting visions of India’s economic future.
Call for alternative trade approach
CPI(M) advocated an alternative trade approach based on South-South cooperation and protection of domestic priorities. The party said India should strengthen ties with developing economies on equal terms.
Trade agreements, CPI(M) argued, must support employment, food security, and public welfare. Therefore, policy choices should reflect social goals, not just market access.
The party reiterated its commitment to resisting policies that harm common people.
What lies ahead
As negotiations continue, CPI(M) said it will mobilise public opinion and parliamentary pressure against the trade pact. The party indicated it would raise the issue in legislative forums.
Public scrutiny, CPI(M) said, remains essential to safeguard economic and political interests.
The coming months may see sharper political confrontation over trade policy.
Conclusion
The CPI(M)’s warning that the India-US trade pact poses risks to the economy and sovereignty underscores deep concerns about the direction of India’s trade policy. By highlighting threats to domestic industry, farmers, labour rights, and policy autonomy, the party has framed the debate around national interest rather than market access alone.
As discussions progress, the India-US trade pact risk to economy will remain a contested issue. Whether the government addresses these concerns transparently will shape not only the fate of the pact but also public trust in India’s approach to global economic engagement.
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