Modi signals breakdown in US-India trade talks over agriculture issues

New Delhi: Prime Minister Narendra Modi, for the first time on Thursday, hinted at why US President Donald Trump is bullying India with mounting tariff threats.

At an event honouring the late M.S. Swaminathan, Modi sent a clear message to Trump that India will not compromise on the interests of its farmers, dairy workers, and fishermen, even at a personal cost.

Also read: Trump’s tariff bully: Why India must make the US rethink its big mistake

Modi’s statement is being seen as the first clear indicator that US-India Bilateral Trade Agreement (BTA) talks broke down, for now, over issues related to agricultural products.

A miffed US president is trying all tactics to pressure India through tariffs on the pretext of different, random issues, including BRICS and Russian oil.

A geopolitical observer told NewsDrum that it should not come as a surprise if Trump’s tirade on stopping the India-Pakistan war is part of his programme to trap India into an unfair trade deal.

Leader of Opposition in Lok Sabha Rahul Gandhi on Wednesday said US President Donald Trump's 50 per cent tariff on Indian goods is "economic blackmail" to bully India into an unfair trade deal.

Soon after Trump announced a penalty of another 25 per cent on India for buying Russian oil, the former Congress president said Prime Minister Narendra Modi should not let Indian interests be overridden.

The Prime Minister’s declaration that he is willing to pay a “personal price” to safeguard the livelihoods of India’s rural population is seen as the first response to Trump, that India will not bow down to his tricks.

This comes at a time when the US has been pushing for greater market access for its agricultural exports, a demand that India has resisted due to fears of adversely impacting domestic producers.

Historical trade discussions between the two nations have often been fraught with challenges, particularly over agricultural issues. India’s withdrawal from the Regional Comprehensive Economic Partnership (RCEP) in 2019, driven by concerns from peasants and rural communities, is a testament to the country’s prioritisation of its agricultural sector.

The current standoff with the US echoes these concerns, with Indian officials emphasising that any trade agreement must not undermine the welfare of its farmers and fishermen.

While Trump’s latest ammunition to bully India is the import of Russian oil, Indian officials have reiterated that there will be no change in policy regarding energy purchases from Russia.

The “personal price” Modi speaks of could imply political or economic repercussions, but it also signals a broader commitment to national interest over short-term gains.