In a strong message against the tariff imposed by the United States, Prime Minister Narendra Modi said on Thursday that farmers remain the highest priority of India and the country will never compromise on their interests.
“For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know that we will have to pay a heavy price for this and I am ready for it. India is ready for it,” PM Modi said while addressing.
Amidst the chaos on the Trump administration, his comment doubles India to impose tariffs up to 50 percent on goods. During the trade talks, the United States was pushing for more access to India’s agricultural market, especially corn, soybeans and cotton.
However, India has so far opposed the inauguration of the agricultural sector, and dairy products, due to concerns about domestic livelihood and possible impacts on farmers.
Earlier on Wednesday, US President Donald Trump signed an executive order, imposing 25 percent additional tariffs on imports from India.
According to the order issued by the White House, Trump cited matters of national security and foreign policy concerns, as well as to increase other relevant trade laws, claiming that India’s imports, directly or indirectly, are “unusual and extraordinary threats” to the United States. Following the order, the total tariff on Indian goods will be 50 percent. While the initial duties become effective on August 7, the additional levy will become effective after 21 days and will be imposed on all Indian goods imported in the US, in addition to completion of goods or specific discounts already.
The executive order also allows for amendments based on changing circumstances, including other countries a potential vengeance or steps taken by Russia or India to address the national emergency.
Meanwhile, economists feel that American additional tariff steps may reach India’s GDP growth in FY 26 to 0.4 percent.
Bank of Baroda economics expert, Sonal Badhan, told ANI, “We initially put 25–26 percent tariffs on imports from India, about 0.2 percent influence (on GDP growth).
He said that on the basis of the final trade agreement, the total effect of these tariffs on GDP growth could be between 0.2–0.4 percent. The possibility of being affected includes garments, precious stones, electronics, pharma, auto parts and MSMEs.
While the Executive Order imposes tariffs on most Indian imports, some items are excluded under the Annex II of the Executive Order 14257. These include some mineral substances, metallurities ore, fuel, industrial chemicals and pharmaceutical pioneers. (AI)
