
A fierce political exchange unfolded in the Lok Sabha as Union Finance Minister Nirmala Sitharaman rebutted Leader of Opposition Rahul Gandhi’s sharp attack over the India-US interim trade agreement, rejecting his claim that the government had “sold Bharat Mata” and asserting that Prime Minister Narendra Modi “always acts in India’s interest”.
Responding during the discussion on the Union Budget 2026, Sitharaman accused the Congress of misrepresenting facts on trade, artificial intelligence, and data policy, and said the previous Congress government had itself compromised the interests of farmers and the poor.
India-US trade deal sparks war of words
Rahul Gandhi, speaking earlier in the House, questioned the Centre’s approach to the trade arrangement with the United States. He alleged that India’s national interests were being diluted under pressure and asked whether the government was “not ashamed of selling India”.
“You yourself admit that we are facing a global storm -- that the era of one superpower is over, that geopolitical conflicts are intensifying, and that energy and finance are being weaponised. Yet, despite acknowledging this reality, you have allowed the United States to weaponise energy and financial systems in ways that impact us,” Gandhi said.
He added, “When America says we cannot buy oil from a particular country, it effectively means our energy security is being dictated externally -- that energy itself is being weaponised against us. Are you not ashamed of this? I am saying you have compromised India’s interests. Have you no shame in what you are doing? It is as though you have sold ‘Bharat Mata’.”
The Congress leader further suggested that external forces were influencing the Prime Minister. “The interesting thing is that I know that the Prime Minister would not sell India under normal circumstances. You know why he sold India? Because they are choking him. They have got a grip on his neck… We can see fear in the eyes of the Prime Minister,” he said.
Sitharaman counters ‘surrender’ allegation
Replying to the debate, Sitharaman rejected the accusations outright. “PM Modi will always act in India’s interest whereas Congress govt surrendered before WTO, sold poor, farmers during its regime,” she told the House.
She said the Congress record on trade negotiations contradicted its current position and accused Gandhi of making sweeping statements without understanding policy details.
The finance minister also addressed concerns raised about data and artificial intelligence. Gandhi had expressed apprehension that India’s digital resources could be compromised under the trade framework. In response, Sitharaman said such claims were misplaced.
“…I would like to answer all his (Rahul Gandhi’s) points. He expressed concerns over AI and data, that India’s data is going out to foreign countries. This is not correct,” she said in the Lok Sabha. “We are incentivising data centres through which data can remain in India and Indian youth can get jobs. Without understanding this, he is saying we are giving our data to foreign countries.”
India AI Mission allocation highlighted
Later, Sitharaman shared a clip of her remarks and underscored the budgetary support earmarked for artificial intelligence initiatives. Referring to the India AI Mission, she said there was a dedicated outlay of Rs 1,000 crore for 2026-27.
“Leader of the Opposition Shri Rahul Gandhi expressed concerns over Artificial Intelligence and data. I want to tell that we are incentivising setting up of Cloud and Data Centres in India, so that the data is stored here and our youth gets employment opportunities. The India AI Mission has a dedicated allocation of Rs 1,000 crore for 2026-27,” she posted on X.
Gandhi, however, reiterated his stance in a separate post, arguing that the agreement would weaken India’s ability to control and benefit from its own data. He described the Prime Minister as “helpless” and claimed he had “surrendered to the US ‘chokehold’ in the trade deal”.
“…in a few days, the government is hosting a grand AI Summit. It should have been an opportunity for India to assert leadership – to demonstrate how a country of 1.4 billion people can use our data to shape the global AI future ON OUR OWN TERMS. Instead, a helpless PM Modi, has surrendered to the US ‘chokehold’ in the trade deal. Under the pretext of ‘clearing barriers to digital trade’, every move to use our data for our own benefit will be opposed,” Gandhi wrote.
He further argued that global technology firms already have a dominant presence in India’s digital ecosystem and warned that the deal would make it harder for India to securely store data, access source codes and tax profits generated from Indian users.
Tariff and import claims
In his speech, Gandhi also focused on tariffs and projected trade flows. He said the average tariff had increased significantly and claimed imports from the US were set to rise sharply.
“Secondly, what have you done on tariffs? Earlier, the average tariff stood at around 3 percent. It has now risen to 18 percent – a six-fold increase. At the same time, US imports into India are projected to rise from 46 billion dollars to 146 billion dollars. This is absurd. Absolutely absurd. There is no firm commitment from the United States towards us, yet we are committing to increase imports by nearly 100 billion dollars annually. We are making concessions, but receiving nothing concrete in return. It appears as though we are standing there like fools. Our tariffs have increased from 3 percent to 18 percent, while theirs have reportedly fallen from 16 per cent to zero,” he said.
Personal barbs in the House
Beyond trade and data, Sitharaman also criticized Gandhi for remarks directed at former party colleague Ravneet Singh Bittu. She pointed out that while Gandhi had expressed respect for Jagdambika Pal because of his past association with Congress, he had labelled Bittu a traitor.
“LoP Rahul Gandhi spoke on several issues. He spoke the language of Jujutsu and Martial Art – grip and control. He also told Jagdambika Pal, who was on the Chair, that he respects him because he was once in his party. But he called Bittu a traitor, who was also once in his party,” she said.
The sharp exchange capped a heated session in the Lok Sabha, with both sides accusing each other of compromising national interest while defending their respective positions on trade, data policy and India’s global engagement.
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