India–US Trade Deal Sparks Farm-Sector Debate

India–US Trade Deal Sparks Farm-Sector Debate

Strategic Policy & Background

New Delhi | Staff Correspondent

The India–US trade deal has grabbed headlines not just for boosting business ties but for stirring a big debate in farm fields and villages. While the government says farmers and dairy producers are “protected and safe” under the pact, critics warn that cheaper, subsidised American farm goods could flood Indian markets and put pressure on local farmers’ incomes. For millions of Indians who depend on farming for their livelihood, this deal is not just about trade — it is a question of whether global markets will strengthen or squeeze India’s agricultural backbone. The agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat, Commerce and Industry Minister Piyush Goyal said. He added that several other sectors would see duties on exports to the United States being reduced from 50 per cent to zero. These include gems and diamonds, pharmaceutical products, aircraft parts, machinery parts, generic drugs, some auto parts, platinum, clocks and watches, essential oils, home décor items such as chandeliers and lamp parts, some inorganic chemicals, paper, plastic and wood items. Several agricultural exports will also see zero duty, including spices, tea, coffee, copra, coconuts and coconut oil, vegetable oil, arecanut, cashew nuts, chestnuts, and fruits such as bananas, mangoes, guavas, kiwi and papaya, along with mushrooms and some processed foods. The Commerce Minister acknowledged that India has reduced or removed tariffs on items the country does not produce or produces in insufficient quantities. Some items will see tariffs removed entirely, others in a phased manner, while a few will remain subject to quota-based tariffs. Economists continue to debate the implications of the deal. On social media, critics quipped that India’s trade slogan had shifted from “Make in India” to “Buy American”. Trade agreements may be signed in air-conditioned rooms, but their true test lies in open fields. If global markets overpower local voices, Indian agriculture risks turning into a bargain buyer’s market. A deal that boosts GDP but weakens farmers’ confidence can hardly be called a win.