From April 2, the President of the United States will implement new fees in all countries. Due to this fee, the entire world and all their sectors are affected. But this fee of Trump will be a big problem for India. To be noted, Donald Trump’s agriculture is an important battlefield in this ‘trade war’. This is the reason for its major impacts in the Indian agriculture sector. But it is clear that despite the US fares, India will not leave the agricultural sector of India. The question is, why does US President Donald Trump want to grow his fare crop in India’s agriculture sector? We explain in detail on this issue.
What is Prasacrook fee?
First, there is a need to understand what this mutual fee is that Trump puts in all countries. In fact, the fee is the tax levied on goods imported from a country. When recruiting this fee, the highest tax on goods imported from the country in the country means that the US will impose the same tax on goods imported from the country. That is, the latitude fee is like a tight.
Why did he call it “the fare king” in India?
Donald Trump has repeatedly described India as “Payment King” and “a great misuse of business”. The US is pressing India to negotiate a major bilateral trade agreement. At the same time, he is strongly demanding to open the agriculture sector for US businesses. US Business Secretary Howard Ludnik recently criticized India’s trade policies and teased its market restrictions.
Ludnik accused the US of preventing the US farmers and urged the opening of its agricultural market. In addition to agriculture, the US has also demanded fee concession in areas such as some industrial products, automobiles, wine, petrochemical products and milk. India can consider cutting fees for labor -dominated sectors such as textile sectors.
What is the effect of Indian agriculture?
Explain that a ‘part -based’ negotiations will be held a few weeks to finalize the structure of the proposed bilateral trade agreement between India and the United States. Experts believe that India will not include its milk and agriculture sector in trade negotiations with the United States, even after putting a million pressure to open India’s agricultural sector. This is because it is a political and economically sensitive area.
Indian industries and exporters have requested the federal government to protect them from US mutual fees. The United States is the largest trading partner in India, which has been demanding exemption from this fee, which will cause a lot of damage to this Indian business and exporters. In the easiest language, the Indian agriculture sector is not less than the backbone of this country. Therefore, the Indian government will not allow the United States to clear the US on its back.
Why is Trump’s eye on Indian agriculture?
In fact, Indian agriculture is fighting with great challenges. Indian agriculture is still backward in productivity, infrastructure and market access. The global value fluctuating and climate change further increases this challenge. In addition, the yield of crops is behind the world. According to an article published on the BBC, Indian farmers work on an average hectare land, while American farmers have 46 hectares of land by 2020.
This is the reason why the productivity of Indian farmers is low. Although half of India’s population is used by agriculture, its contribution to GDP is only 15%. In comparison, less than 2% of the American population depends on agriculture. This structure of agriculture makes India’s trade policies more difficult against such transaction fees. Although India’s agricultural commodities are surplus, India has high fees for other countries to protect its farmers from cheap imports. These fees go up to 150% of agricultural imports.
Can Trump Plant ‘Payment Crop’?
It is not new that the US is pressing the maximum penetration in India’s agricultural sector. The United States considers Indian agriculture that is not being used. But India has always protected the food safety, livelihood and interests of millions of small farmers. Under this strategy, India’s biggest victory is to become a surplus-food force from a country that is defective. In the 1950s and 60s, India depends on the food aid of other countries, especially the United States to feed its population. But many revolutions in the field of agriculture changed this look.
Today, India has become sufficient for major foods and becomes the world’s largest dairy producer. The rapid growth of horticulture, poultry and aquatic agriculture has also expanded India’s food reserves. Today, India is not only feeding its 1.4 billion people, but as the eighth largest agricultural exporter in the world, it sends grains, fruits and dairy products around the world.
Big difference in Indo-US imports
According to Delhi -based Think Tank World Trade Research effort (GTRI), India weighed the average fees on US agricultural goods – the average duty rate for imported production – 37.7%, which is just 5.3% of Indian agricultural goods in the United States. In 2023-24, the United States was the largest trading partner in the US $ 119.71 billion with bilateral trade. In April 2000 and September 2024, India received US $ 67.8 billion foreign direct investment from the US.
According to PTI, US agricultural exports in India in 2024 are $ 1.6 billion. The main exports include almonds, pistachios, apples and ethanol. By 2024, India exported $ 32.7 billion to the US. The major exports from India to the United States include drug production, organic, telecommunications equipment, precious and semi -precious stones, petroleum products, gold and other precious metal jewelery, cotton ready -made wear, iron and steel products.
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