Bharat Bandh On February 12: No To India-US Trade Deal? Farmers Call For Nationwide Strike Next Week

Farmers are likely not happy with the latest India-US trade deal, which was much anticipated and expected widely. As per reports, several farmers' organizations, such as SKM, AIKS, and others, have criticized the mega trade deal and have threatened to go on a nationwide strike next week. Unlike the farmers, majority of experts have given thumbs up to the US' tariff cuts on major goods and services, which is expected to boost India's exports and drive the economy.

Nationwide Strike:

The Samyukt Kisan Morcha (SKM) issued a statement on Saturday, saying, the proposed interim trade agreement framework between India and the United States amounted to a "total surrender" of Indian agriculture to American multinational corporations, as per PTI report.

SKM further demanded the immediate resignation of Commerce Minister Piyush Goyal. The leaders reportedly claimed that dairy products are part of the FTAs signed with the U.K., New Zealand and European Union, and the fresh revelations have undoubtedly proved the Commerce Minister is consciously propagating falsehood and betraying the farmers and the entire people.

While addressing the press, SKM leaders stated that the nationwide protests will be held across India in villages.

Meanwhile, PTI also cited that All India Kisan Sabha (AIKS) leader Krishna Prasad said the trade deal will have a deep impact on the agriculture sector by opening the market for items like dried distillers' grains, red sorghum for animal feed and soybean oil, and also claimed it would impact the dairy sector.

Prasad believes that the US and European Union Trade deals were done to benefit their own economy and not particularly beneficial for India.

The unions have said they would burn effigies of US President Donald Trump and Prime Minister Narendra Modi in protest.

Bharat Bandh On February 12

SKM has urged farmers to demonstrate a nationwide strike on February 12, and offer support to general strike of workers.

India-US Trade Deal:

In the late hours of February 2nd, President Trump said, "It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine."

Trump revealed that PM Modi has agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.

Hence, with effect from February 2nd, Trump reduced reciprocal tariffs from 25% to 18%. This will eventually lead to scrap the additional 25% tariffs that was imposed in August last year.

By mid-2025, US tariffs on Indian exports reached 50% which was a combination of 10% baseline, 15% reciprocal making 25% plus additional 25% punitive duty imposed with effect from August 27, 2025.

What Experts Say About India-US Trade Deal?

According to Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments, the US-India trade deal is a big boost for India's labour intensive export sectors like textiles and apparels, gems and jewellery, leather and footwear and marine processed foods. From the employment perspective, this is a big positive. It is important to understand that India has a $41 billion export surplus in trade with the US. This may come down as we import more energy, defense and aviation-related goods and high technology stuff from the US. The exclusion of cereals, dairy, and poultry safeguard the interests of India's farmers interests.

"The India-US trade agreement is about reducing friction between two deeply linked markets. For Indian exporters, the biggest gain is improved predictability. They get clear pricing, fewer disruptions, and more confidence in planning production and capital. If used well, this agreement gives exporters a practical window to stabilize operations, rebuild demand, and deepen India's role in global supply chains," said Pushkar Mukewar, Founder and CEO , Drip Capital.

Further, as per Janakiraman Rengaraju, Chief Investment Officer - India Equities, Templeton Global Investments, the US is India's largest trading partner, absorbing nearly 20% of goods exports, valued at ~ $86.5 billion in FY2025 (~2.2 % of GDP), along with a $41 billion trade surplus (our exports to the US are more than our imports from the US). India's exports to the US were particularly losing steam since September 2025, when higher tariffs came into effect (exports to the US averaged -1.4% MoM since August down from +1.9% MoM in the Jan-Jul 2025 period). This deal will help reverse some of those losses. India's labour-intensive sectors like textiles, marine products, gems and jewellery were greatly at risk of losing out to other neighbouring peers which were taxed lower. This risk will be largely mitigated if not completely ruled out. Thus, the new announcement further boosts our export competitiveness more so in the context of the recent European Union and United Kingdom free trade agreements.

Adding, Rengaraju said, India is also undertaking domestic level reforms to attract FDI, including higher foreign participation in state run banks, tax concessions for setting up data centers, in the nuclear power domain as well as aircrafts and semiconductors. This trade deal will help cement many of these on the ground. These trends increase the chances of a Balance of Payments surplus, help to boost banking system liquidity, improve credit‑deposit ratios, create room for lower interest rates, and in turn support stronger GDP growth.