Indo–US trade deal: Deal with America: A global guarantee for the farmer
“Today, India stands as a beacon of hope in the global economy. The numerous trade agreements India is signing reflect the world’s confidence in the country. Nearly 15 percent of global growth is coming from India.”
IMF Managing Director Kristalina Georgieva
The trade deal concluded between India and the United States once again proves this statement true. With the visionary leadership of Prime Minister Narendra Modi, India is emerging as a powerful economic force on the global stage. Over the past decade, India’s foreign policy has evolved beyond mere diplomacy into an economic engine driving national development. The latest example of this transformation is the historic trade agreement signed with the United States.
This deal is not merely about numbers; it represents international recognition of the self-reliance of 1.4 billion Indians. Currently, bilateral trade stands at approximately $190 billion. The goal of this agreement is to increase it to $500 billion over the next five years, marking a new chapter in India’s economic history.
Under this agreement, Indian exporters will gain immense opportunities. Import duties imposed by the US on Indian textiles, engineering goods, and pharmaceutical products, ranging from 20% to 35% are set to be significantly reduced. This is expected to generate an additional $10 billion annually for Indian exporters. Not just large corporations, but also micro, small, and medium enterprises (MSMEs) across the country will receive special access to American ecommerce platforms. Economic experts estimate that nearly 2.5 million new jobs could be created as a result.
Additionally, the transfer of advanced technologies such as semiconductors and artificial intelligence will strengthen “Make in India,” transforming it into a global brand. “I have tremendous confidence in India’s future. India has more potential than any other major country. Prime Minister Modi is working strongly for India’s interests, and under his leadership, India is certain to become a top global economic power” said Elon Musk.
This sentiment reflects the broader global perspective. That is why many countries are eager to sign trade agreements with India. In the past year alone, India has concluded five historic trade agreements. For the first time since independence, India has signed trade agreements within a single year with five of the world’s most powerful economies, an economic diplomatic achievement under Prime Minister Modi.
These five economies together account for over 50% of global GDP. This means Indian goods now have direct access to markets representing half of the world’s wealth. This historic development positions India not only as a “Vishwaguru” (global leader) but also as a global economic hub.
The strategy behind these agreements is profound. Along with the UAE, Australia, and Mauritius, India has signed agreements with key European nations. As a result, tariffs on Indian products have been drastically reduced. Indian textiles, jewelry, and agricultural products will now be more competitively priced in international markets, enabling exports to potentially reach the trillion-dollar mark in the near future.
Unlike trade agreements during the Congress era, which were seen as opening India’s markets to foreign goods, today’s agreements are framed under the “Make in India” vision, designed to enable Indian goods to dominate global markets. Signing agreements with countries representing half of global GDP in a single year reflects India’s growing economic strength.
These agreements are expected to generate employment for millions of youth, open global markets for lakhs of MSMEs, and ensure remunerative prices for farmers. This is not merely trade; it is a strong foundation toward building a “Viksit Bharat” (Developed India) by 2047.
Another key aspect is reducing dependence on China. These agreements will help India strengthen its position in the global supply chain. However, the Congress party continues its opposition campaign against trade agreements, claiming the US deal contains anti-farmer provisions. In reality, the Modi government has acted strategically to elevate Indian agriculture to the global stage.
Contrary to opposition claims, foreign goods will not flood Indian markets. The government has established a “negative list” as a protective shield. Critical sectors such as dairy, wheat, rice, and sugarcane, backbones of small and medium farmers are included in this list, protecting them from cheap imports. Thus, the domestic market remains stable, and farmers face no risk from foreign competition.
On the other hand, this agreement opens new income avenues for Indian farmers. Previously, strict phytosanitary regulations and high tariffs limited exports to countries like the US. Now, Indian mangoes, grapes, pomegranates, and non-basmati rice will gain access to the US market at zero or minimal duty. This reduces intermediaries and ensures better global prices for farmers’ produce. This is not just trade; it is a transformative step toward making Indian farmers global exporters.
Opposition criticism regarding US chicken legs and meat imports must also be clarified. The Indian government has respected religious and cultural sentiments and has not compromised on quality standards. Genetically modified products and items contrary to Indian food habits will continue to face strict restrictions.
As seen in agreements with Australia and the UAE, India has safeguarded its interests, and the same approach applies to the US deal. The agreement is also expected to bring significant US investment in agri-technology and cold storage, reducing post-harvest losses and ensuring value for every grain produced.
Allegations that the government compromised on intellectual property rights, leading to higher medicine prices, are baseless. India remains a global medical hub, and the availability of affordable generic medicines will not be threatened. Patent laws continue to prioritize national interest.
Similarly, concerns about data privacy and sovereignty are exaggerated. India has enacted strict laws ensuring data protection. US tech companies must comply with Indian laws, and data localization norms remain intact.
Compliance with global environmental and labor standards will improve product quality and enhance India’s global brand image. Today, India is revitalizing industries by opening major global markets like the US.
As India moves toward becoming a $5 trillion economy, this agreement marks a powerful step forward. India is no longer just a market . it is emerging as a decisive force in the global supply chain. This trade agreement represents a major milestone for New India’s aspirations and the ambitions of its youth.
(The writer is BJP National Council Member)
