India carves out industries to protect vs US imports

US President Donald J. Trump imposed a 25% tariff on Indian goods after prolonged talks that got bogged down over access to India’s labor-intensive agricultural sector, which New Delhi has pledged to protect.

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The United States is pressing India to open its markets to a wide range of American products, including dairy, poultry, corn, soybeans, rice, wheat, ethanol, fruits and nuts.

While India is willing to provide greater access for US dry fruits and apples, it is holding back on corn, soybeans, wheat, and dairy products.

A key reason for this resistance is that most US corn and soybeans are genetically modified (GM), and India does not permit the import of GM food crops.

GM crops are widely perceived in India as harmful to human health and the environment, and several groups affiliated with Prime Minister Narendra Modi’s ruling Bharatiya Janata Party (BJP) are opposing their introduction. The commercial cultivation of a high-yielding GM mustard variety that India developed itself is currently not allowed due to an ongoing legal battle.