India Vows to Protect Farmers Amid US Tariff Hike

Generated by AI AgentTicker Buzz
Thursday, Aug 7, 2025 5:10 am ET1min read
Aime RobotAime Summary

- India's PM pledges to protect farmers amid U.S. 50% tariff hike on Indian goods, prioritizing domestic agricultural interests over trade concessions.

- U.S. seeks expanded dairy and GMO crop exports to India, but faces resistance over cow-related religious sensitivities and India's GMO cultivation ban.

- As world's top milk producer and major crop grower, India maintains strict market controls to shield politically vital farming sector from foreign competition.

- Tariff dispute highlights stalled trade negotiations and domestic backlash risks, with farmers comprising a critical electoral bloc in the world's most populous nation.

In response to the United States' decision to double tariffs on Indian goods, the Indian Prime Minister has vowed to protect the interests of the country's farmers. This pledge comes amidst growing pressure from the U.S. to open Indian markets to American exports, particularly in the dairy and genetically modified crops sectors.

The Indian Prime Minister, speaking at a conference in New Delhi, emphasized that the welfare of farmers remains a top priority for the nation. The government is continually working to enhance farmers' incomes, reduce cultivation costs, and expand livelihood opportunities. The Prime Minister did not directly address the U.S. President's move to increase tariffs on Indian products to 50%, a measure aimed at penalizing India for purchasing Russian oil.

This statement comes at a time when Washington is seeking to expand exports of U.S. dairy products and genetically modified crops to India. It underscores the Indian government's efforts to safeguard a politically sensitive sector amidst stalled trade negotiations and potential domestic backlash.

The Prime Minister stated, "Our government views the strength of farmers as the foundation of national progress. For us, the welfare of farmers is of

importance." India is the world's largest milk producer and the second-largest producer of rice, wheat, sugar, and cotton. However, the country does not permit the cultivation of genetically modified food crops, despite their potential to increase yields.

Previously, there were reports suggesting that India might consider relaxing some market access restrictions on U.S. dairy products. Currently, dairy products from cows fed with animal-derived feed are not allowed into India, as the majority of the population, who are predominantly Hindu, consider cows sacred.

In the world's most populous nation, farmers constitute a significant voting bloc. The Prime Minister asserted, "India will never compromise" on the interests of farmers, fishermen, and the dairy industry.

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