Amid growing scrutiny over India's proposed trade deal with the United States, the Congress party on Monday issued a strong caution, warning against what it termed as "MASALA" deals — Mutually Agreed Settlements Achieved through Leveraged Arm-twisting. The warning came shortly after an economic think tank advised India not to rush into the agreement.
Congress general secretary in-charge of communications, Jairam Ramesh, raised the issue in a post on social media platform X (formerly Twitter), pointing to past examples of “Masala Bonds” — rupee-denominated bonds issued overseas by entities like the International Finance Corporation (IFC) in 2014 and 2015, followed by HDFC and NTPC. Citing a recent assessment by the New Delhi-based Global Trade Research Institute (GTRI), Ramesh said, “Given the totally arbitrary and frankly bizarre manner in which President Trump functions, GTRI has now drawn attention to what it calls MASALA — Mutually Agreed Settlements Achieved through Leveraged Arm-twisting.”
He added that while the acronym may be colourful — seemingly a nod to the prime minister’s penchant for acronyms — the warning should not be dismissed lightly. “In our desire to curry favour, we have to be very, very careful,” he cautioned. Ramesh further noted that President Trump has made 21 public statements since May 10 referencing his use of MASALA tactics, including what he described as efforts to force Operation Sindoor to halt abruptly.
The Congress leader's remarks echo the concerns raised by trade experts, who have advised India to proceed cautiously with the deal, especially in safeguarding core sectors like agriculture. Analysts warned that the United States is pursuing a hardline trade policy even with its closest partners, such as the European Union (EU). The US has already issued letters to 24 countries, including the EU, proposing tariffs as high as 50 per cent on Brazil and 30 per cent duties on key partners like the EU and Mexico, effective from August 1.
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According to GTRI, India must recognise that it is not alone in facing pressure from Washington. The US is currently negotiating trade deals with over 20 countries and is seeking trade concessions from more than 90 nations. “Most of these countries are resisting because they view MASALA deals as politically driven, transactional demands that offer no lasting trade certainty,” said Ajay Srivastava, founder of GTRI. He added that countries like the EU and Mexico, despite being major US trade partners, are also resisting these terms. In contrast, India may find it challenging to secure a fair and balanced agreement.
Another trade expert echoed these concerns, stating that India must tread cautiously during the ongoing discussions for the proposed Bilateral Trade Agreement (BTA). GTRI emphasized that nations such as Japan, South Korea, the EU, and Australia are rejecting trade proposals that involve unilateral tariff cuts, mandatory guaranteed purchases of US goods, and leave room for future tariffs even after deals are signed.
An Indian delegation of trade negotiators is expected to visit Washington soon to continue talks. Srivastava concluded with a stark warning: “India should stay the course and avoid trading away core sectors like agriculture. A hasty deal under pressure could have irreversible consequences, especially when such agreements may not survive the next shift in US politics.”
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