The Tuesday February 2 announcement of a trade deal between the US and India has generated one-sided even blinkered euphoria in the corporate media. As this reflects whose interests they reflect.
Is this euphoria justified when we look at the interests of Indian farmers and workers? Seen together with a much criticised 2026 Union Budget by Farmers Unions and organisations. India is likely to witness more rounds of nationwide protests.
One,details of the agreement are not yet available. It is only when the full scope and details of the trade deal are available, one can make a proper assessment.
However, the announcement made by the US President Donald Trump on his
social media accounts indicate that Indian goods imports will face a 18 per cent tariff, while India reduces tariffs and non-tariff barriers on US goods to zero.
What does this one-sided deal mean? Eliminating tariffs will or may result in the flooding the country with US goods which will adversely affect industries and workers’ livelihoods. Removal of non-tariff barriers would mean eliminating subsidies and other measures, which protect and support Indian farmers.
Moreover. Trump has claimed that India has agreed to stop buying Russian oil and committed to buy $500 billion worth of US energy, technology and farm products. This, if true, shows up the highly unequal nature of the trade deal with India in a subordinate position, circumscribing its sovereignty.
Farmers unions, analysts and experts are now demanding that the government place the full trade agreement in the Parliament and in the public domain, so that there is a thorough discussion. Any harmful provisions must be rescinded to protect the interests of Indian industry, agriculture and working people.
Sharp Criticism of 2026 Union Budget, Agriculture Finds No Presence in the Union Budget by the All India Kisan Sanghatana (AIKS). Questioning the absence of any proposals for loan waivers and sharply criticising the reduction in fertilizer subsidy by Rs.15679 crores, the AIKS has called upon farmers to burn copies of the anti-farmer, anti-federal budget on February 3 across the country*
In a press note issued, AIKS states that, the Union Budget 2026-27 fails yet again to present any commitment towards the strategic regeneration of agriculture- the most crucial livelihood sector for the Indian people. Agriculture was largely ignored by the Finance Minister in her budget speech, small and marginal farmers were mentioned just once, while there was a conspicuous absence of any mention of rural labour. The budgetary figures echo this neglect.
According to the Economic Survey presented this week by the Union government, the average growth rate of agriculture in 2025 saw a fall. The growth rate registered in the previous quarter was 3.5 per cent, against the decadal average growth rate of 4.45 per cent.
Crop production witnessed the most drastic fall. Given this context of stagnation in the agriculture sector, it was expected that the Union Budget 2026-27 will deliver some relief and momentum. However, the Budget disappoints once again.
The total budget allocated to the Ministry of Agriculture and Farmers Welfare at about 1.40 Lakh Cr., is just a 5.3 per cent increase in nominal terms from the Revised Estimate 2025-26. Accounting for inflation, this implies that the real allocation to agriculture has not seen any substantial growth.
The Economic Survey also recognised that the yield rates of various crops including cereals, maize, soybean, and pulses continue to trail behind the global averages, making Indian production uneconomic.
However, according to the AIKS. The Budget fails in terms of providing any additional support to boost agriculture research and development.
Despite the Finance Minister mentioning enhancing agriculture productivity as a kartavya, the budgetary allocation to the Department of Agricultural Research and Education has been reduced from 10281 crores Revised Estimate (RE) 2025-26 to 9967 crores (BE 2026-27).
The rhetoric on investing in cash crops continued even in this year’s budget. The speech underlined a focus on coconut, cocoa, cashew, nuts, and sandalwood. However, in reality, missions such as Cotton Technology Mission, Mission on Pulses, Hybrid Seeds, and Makhana Board, introduced in the past, find no mention in the budgetary figures.
Talking of relief to farmers, the budget presents no remarkable proposal. The subsidy on fertilizers has seen a reduction from 186460 crores (RE 2025-26) to 170781 crores (BE 2025-26). Food subsidy has also seen a reduction from the revised estimates of previous year.
There was no mention of the MGNREGS scheme or even the newly passed VB-GRamG scheme in the budget speech, which indicates the total dismissal of the significance of rural employment.
VB-GRamG scheme has been allocated 95692 crores; however, this allocation is subject to the clause of 40 per cent mandatory state funding. 60 percent of the allocated budget under VBGRamG is 57,415 crores, which is drastically less than the 88000 crores allocated to MGNREGS under RE 2025-26. This means for the new scheme to function at the previous level, State governments have to bear the burden of 38,277 crores!
As per the economic review 2025-26, the number of states with surplus has been reduced from 19 in 2018-19 to 11 in 2023-24. The states are demanding 50% share of the divisible pool but the 16th Finance Commission has proposed 41% only. The state governments without financial autonomy will not be able to find adequate funds to support the employment guarantee scheme and even the average 47 days of employment under MGNREGS will not be available for the rural people this year under VB GRAMG Act. It is a gross assault on the rural workers and peasants as well as violation of the federal rights. This is not acceptable to the peasantry.
AIKS: The only major announcement concerning rural employment was the Mahatma Gandhi Gram Swaraj Yojana, promoting village industries; however, no significant financial allocations were made.
Among the Agriculture and Allied sectors, the only significant budgetary allocation has been made under Animal Husbandry and Dairying, from 5303 crores (RE 2025-26) to 6135 crores (BE 2026-27). However, here again the thrust has been on expansion of credit-infused veterinary hospitals, breeding in the private sector and garnering foreign investments.
The AIKS has called upon the farmers, rural workers and the people at large to strongly protest against the anti-farmer, anti-worker, anti-federal budget by burning copies in villages and tehsils on February 3, 2026 or any subsequent day. AIKS also appeals to all to ensure the General Strike on February 12 will be a great success and will reflect the anger against the anti-people Union Budget 2026-27.
Related:
ASHA Union Demands Hike in NHM Funds in Union Budget 2025, Social Security Benefits
Thousands of NREGA workers urge Modi to resume work in West Bengal, contribute to State Budget