India won't yield to US' farm sector demands under any pressure
Govt source
This story was originally published at 14:30 IST on 1 August 2025
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NEW DELHI – New Delhi will not agree to Washington's demand to get access to India's farm and dairy market under any pressure, a government official said. The US, under the trade deal, wants access to the Indian agri-market, which is a major point of contention in the negotiations between the two parties.
The US also wants to push its genetically modified crops into the Indian market. "India will not allow GM crops, we are committed to protecting our farmers and small entrepreneurs," the government officia1 said.
On Thursday, Commerce and Industry Minister Piyush Goyal had also said that the government will prioritise national interests in negotiations with the US. The government is also committed to protecting Indian farmers and small entrepreneurs, Goyal had said in Parliament.
India and the US have held five rounds of negotiations so far and the next one is likely to begin Aug. 25, more than a fortnight after the US begins collecting the 25% duty. The White House, in its latest executive order, said that all Indian goods would attract 25% reciprocal tariffs in the US from Aug. 7.
The government official, quoted above, said that the impact of the US tariffs on the Indian economy is likely to be marginal. However, this may not be completely true as the US is India's top export destination with a nearly 20% share in total outbound shipments. Experts foresee a fall of 30% in India's goods exports to the US in FY26. Economists have also estimated a downside risk of at least 20 basis points to India's economic growth due to the tariffs.
India had exported goods worth $86.51 billion to the US in 2024-25 (Apr-Mar) and had a trade surplus of $40.82 billion during the period, according to commerce ministry data. End
US$1 = INR 87.45
Reported by Krity Ambey
Edited by Akul Nishant Akhoury
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