India’s agriculture and dairy products are not reaching the market to the United States, which is likely to not reach a trade agreement in the S&P Market Intelligence Report released on Friday.
The report further states, if 25 percent of the tariff we applied remains beyond September 2025, then India’s GDP will be adjusted downwards. S&P Market Intelligence has estimated India’s GDP for FY 2025-26 for FY 2025-26, below the GDP growth of 6.5 percent in FY 2024-25.
“This launch is likely to be adjusted down when 25 percent of tariff is implemented. Its application will leave India relatively deprived versus regional contestants who have achieved low tariff rates.”
The report states that India is never going to provide market access to the US in the areas of agriculture and dairy products as it will directly affect farmers who represent an important electoral group in the country.
“The Government of India will be highly reluctant to provide market access to the US in the areas of agriculture and dairy products, making it difficult for India to reduce its tariffs on American exports of soy, corn, wheat and rice as farmers represent an important electoral group in the country.” Noted S&P.
Other controversial areas include Section 232 in contact which includes ‘national security’. For us, tariffs on exports of electronics and pharmaceuticals, which is 12.3 percent of India’s exports and 17.8 percent (according to 2024 export data). The US has given exemption or low rates in both these areas for the European Union deal, it will put Indian manufacturers in a competitive loss until a similar deal is interacted with us
The report further states that the import of Russian oil and defense equipment with Russia may be another issue delayed in trade agreement.
“While India will be ready to increase the import of American crude oil, the government will not be ready to pursue this policy change especially due to American demands. India will instead to import LNG from the US, in view of its growing domestic demand and to expand the US supply capacity, India-US trade (with the US-US trade (with the US $ 45.7 Billion Squishing).
Trump has threatened a fine on India if it continues to import from Russia, however, has not been announced so far. (AI)
