India is following a dual-track approach in its trade deal strategy with the United States. It involves reducing tariffs on select non-essential imports while protecting domestic interests in sensitive sectors.
He stated that the Indian government would conduct a thorough analysis of the potential gains and losses before finalizing any agreement. “Our priority is to protect the interest of our farmers. India will not work closing its eyes. We will assess our gains and losses. Keeping that in mind, an agreement will be finalised,” Chouhan told PTI in an interview.
As part of the ongoing negotiations, India has proposed tariff reductions on specific U.S. agricultural products. These include almonds, cranberries, bourbon whiskey, and lentils. For example, India reduced the tariff on bourbon whiskey from 150% to 100%. However, India continues to resist lowering import duties on critical staples like dairy products, wheat, rice, and maize. The Indian government maintains that reducing tariffs on these commodities could hurt domestic producers. India’s stance aligns with its objective of shielding vulnerable farmer communities from global price shocks and competition.
India Seeks Market Access for Its Farm Exports in the US
India is also pushing for broader market access for its own agricultural exports to the United States. The government has identified pomegranates, grapes, and various rice varieties as high-priority products for export promotion. Officials stated that India expects reciprocal trade benefits and improved access for its products in the American market. By negotiating balanced terms, India aims to enhance its agri-export potential without compromising domestic agricultural sustainability. The trade talks also address phytosanitary barriers and certification processes that currently restrict Indian exports.
The Indian government is implementing several domestic measures to prevent distress sales and improve farmers’ earnings. Agriculture Minister Chouhan said the government is working on a new scheme that will allow farmers to sell their produce directly to consumers. “We will ensure that farmers get a fair price and avoid distress sales,” he said. The scheme will cut out middlemen and reduce farmers’ dependence on informal market structures. Authorities also plan to transfer new technologies and seed varieties to farmers faster, enhancing productivity and income.
India Adopts Dual-Track Approach in US Trade Deal Strategy
India is following a dual-track approach in its trade deal strategy with the United States. It involves reducing tariffs on select non-essential imports while protecting domestic interests in sensitive sectors. NITI Aayog and other policy bodies have advised this approach to manage trade-offs strategically. The Indian side is offering concessions only where local production does not meet demand. Meanwhile, officials are resisting any proposals that could negatively impact large sections of rural communities. This calculated approach ensures a fair, evidence-based negotiation with the U.S.
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