Tuesday, 02 January 2024 12:17 GMT

India's PM Modi Vows No Compromise On Farmers' Interests Amid U.S. Tariff Hike


(MENAFN- Khaama Press) Indian PM Modi firmly stated he will not compromise on farmers' interests, despite the U.S. imposing steep new tariffs on Indian agricultural exports.

Indian Prime Minister Narendra Modi has made his first remarks following U.S. President Donald Trump's decision to impose steep tariffs on Indian goods. Modi declared he would not compromise on the interests of Indian farmers, even if it came at a high personal or political cost.

Trump recently introduced an additional 25% tariff on Indian imports, raising the total tariffs against New Delhi to 50%. While Modi did not directly mention the U.S. move, his comments were seen as a firm stance in response.

One of the main sticking points in failed trade talks between the two nations has been India's refusal to open its agricultural and dairy markets to U.S. products. India has cited cultural sensitivities and the need to protect local producers as key reasons for its resistance.

The U.S. has long urged India to liberalize these sectors, but after five rounds of negotiations, talks collapsed without an agreement. Another source of friction has been India's ongoing oil trade with Russia, which remains controversial in Western diplomatic circles.

Speaking at an event on Thursday, Modi reiterated:“For us, the welfare of our farmers comes first. India will never compromise on the interests of its farmers, dairy industry, or fishermen.”

Modi now faces mounting domestic pressure from both supporters and opponents, including members of the Indian National Congress, who demand a strong and dignified response to the U.S. tariffs.

As trade tensions escalate, the spotlight remains on how India balances global diplomacy with internal economic priorities, particularly in safeguarding its vulnerable agricultural sectors.

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