Prime Minister Narendra Modi took a resolute stand during his address today, declaring that he would act as a “wall” to safeguard the interests of India’s farmers, livestock rearers, and fishermen. His remarks come at a critical juncture as India navigates escalating trade tensions with the United States, which has imposed a 25% tariff on Indian goods, with an additional 25% set to take effect from August 27, bringing the total to 50%. These tariffs, partly linked to India’s purchase of Russian oil, have intensified negotiations over a proposed Bilateral Trade Agreement (BTA) between the two nations.

PM Modi’s unwavering stance centers on rejecting US demands for reduced tariffs on agricultural and dairy products, including corn, soybeans, apples, almonds, ethanol, and increased market access for US dairy. “India will never compromise on policies that harm our farmers, fishermen, and cattle rearers,” PM Modi asserted from the Red Fort, emphasizing that protecting the agricultural sector is a non-negotiable priority. This position aligns with India’s historical reluctance to grant duty concessions in agriculture, as seen in trade agreements with partners like Australia and Switzerland, where no such concessions were made.

The US tariffs, described as “unfair and unjustified” by Indian officials, are expected to impact 55% of India’s merchandise exports to the US, particularly in sectors like textiles, leather, jewelry, and seafood. Despite the economic pressure, India remains committed to ongoing trade talks, with the sixth round of BTA negotiations scheduled for August 25.

Commerce Secretary Sunil Barthwal noted that discussions are progressing on “four parallel tracks” involving negotiators, ministers, diplomats, and industry stakeholders, with a goal to double bilateral trade to $500 billion by 2030. However, PM Modi’s firm rhetoric signals that India will not yield on agricultural concessions, even as it explores alternative markets like the EU, UK, and Oman to diversify exports.

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India’s trade data reflects resilience, with July 2025 exports rising 7.29% year-on-year to $37.24 billion, driven by engineering goods, electronics, and pharmaceuticals, despite a widening trade deficit of $27.35 billion. The US remains India’s top export destination, with a trade surplus of $41.18 billion in FY25.

As global trade dynamics shift, PM Modi’s commitment to protecting farmers underscores India’s broader strategy to balance economic growth with the welfare of its agricultural community, even in the face of mounting international pressure.

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