India-U.S. Trade Deal Balances Tariff Cuts and Farmers' Interests

India and the U.S. have agreed to reduce tariffs on Indian goods in exchange for India ceasing Russian oil purchases and reducing trade barriers. While India won’t lower tariffs on GMOs, it might on certain fruits, nuts, and spirits. Agriculture remains politically sensitive due to India's vast farming populace.

India and the United States have finalized a significant trade deal aimed at reducing U.S. tariffs on Indian goods from 50% to 18%. In return, India is set to limit its purchases of Russian oil and diminish some trade barriers, showcasing a strategic vision for mutual growth.

Despite the agreement's broad terms, India remains resistant to lowering tariffs on genetically modified (GM) food crops like corn and soybeans, due to its domestic farming priorities. Indian farmers, who largely operate on a small scale, overwhelmingly oppose imported GM crops, making concessions in this area unlikely.

In contrast, New Delhi might reduce barriers for imported farm products such as almonds and berries, which align better with Indian agricultural interests. Opening up these niche markets could present a politically viable solution, benefiting farmers on both sides and maintaining sensitive agricultural balances.

(With inputs from agencies.)