Congress Critiques 2026 Union Budget and India-US Trade Deal

The Congress party has sharply condemned the 2026 Union Budget, with senior leader Jairam Ramesh characterizing it as a “damp squib” and a clear indication of what he calls “intellectual exhaustion.” Ramesh’s remarks followed a series of critiques aimed at the budget presented by Prime Minister Narendra Modi, suggesting that the government’s financial strategies lack innovation and fail to address pressing economic concerns.

In a statement made on February 15, 2026, Ramesh asserted that even the Prime Minister recognizes the budget’s shortcomings. He noted that the negative market reactions indicate a lack of investor confidence. “The PM knows that this year’s Budget has been a damp squib and shows every sign of intellectual exhaustion,” Ramesh stated on the social media platform X. He further claimed that Modi’s recent interview was an attempt to manage headlines in the wake of the opposition’s thorough criticism in Parliament.

Budget Focuses on High-Speed Rail Development

Despite the backlash, the 2026 Union Budget does outline plans for significant infrastructure development, particularly in sustainable transport. The budget proposes the establishment of seven high-speed rail corridors to enhance connectivity between major urban and economic centres. These corridors are designed to reduce travel times, lower emissions, and promote regional development. Proposed routes include Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri. Together, they aim to facilitate faster and cleaner mobility across India’s financial hubs and emerging cities.

Concerns Over India-US Trade Deal

In addition to the budget discussions, Congress has also voiced strong opposition to the recent India-US interim trade agreement. Ramesh criticized the deal, suggesting it would harm Indian farmers by making them reliant on imported agricultural products. He accused Modi of engaging in “headline management” to distract from what he termed a betrayal of farmers’ interests.

Leader of the Opposition in the Lok Sabha, Rahul Gandhi, echoed these sentiments, calling the trade deal a “betrayal of Indian farmers.” He raised concerns about the implications of importing Distillers Dried Grains (DDG) from the US, questioning whether it would lead to Indian cattle being fed grain made from genetically modified American corn. “Does this mean our milk production will become dependent on the American agricultural industry?” Gandhi asked in a post on X.

Ramesh also highlighted the potential impact of allowing imports of US genetically modified soybean oil on farmers in states such as Madhya Pradesh, Maharashtra, and Rajasthan. He inquired about the term “additional products” mentioned in the trade deal, implying that it could signal future pressures to open Indian markets to more imports.

Details of the India-US Interim Agreement, announced last week, outline a framework for a mutually beneficial trade relationship. It includes the elimination or reduction of tariffs on various US industrial goods and food products, including dried distillers’ grains, red sorghum, and soybean oil. In return, the United States would impose a reciprocal tariff of 18 percent on selected Indian goods, such as textiles and machinery. The agreement aims to enhance trade relations between the two nations while addressing concerns from various stakeholders in India’s agricultural sector.

As discussions continue regarding the implications of the budget and the trade agreement, the Congress party remains firm in its criticism, emphasizing the need for policies that genuinely support the interests of Indian farmers and the wider economy.