'Raising domestic consumption need of hour amid tariff

INDIA faces challenges in finding new markets to offset the impact of US tariffs and for now, the government should focus on boosting domestic consumption and avoiding food restrictions during festivals, says Siraj Hussain, former secretary to the Ministry of Agriculture and Farmers Welfare, to Jitendra Choubey.

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He shares his views on how India can respond to US tariffs and emphasises the importance of careful communication by politicians and responsible reporting by the media to enable policymakers to negotiate more effectively. Excerpts:

How will the US tariffs impact India's rural economy overall?

Overall, the rural and agriculture-based economy may not see major changes, but some sectors will be hit hard.

India's exports of frozen shrimps and prawns to the US were $1.89 billion in 2024. India was the major source of imports into the US in this category, with a 40% share. US importers would rather import from Ecuador, where only a 15% tariff is payable. Seafood imports from India into the US also face an anti-dumping duty of 1.8% and a countervailing duty of 5.7%.

Similarly, rice exports of $408.6 million will suffer as imports of Thai and Pakistani rice will face a tariff of only 19% against 50% by India.