Archive · 18 Jul 2025
US-India Trade: Dairy Exclusion, GM Crops Cause Friction
The United States and India are negotiating a trade deal.
The US might exclude dairy products because India is sensitive about it.
However, the US wants India to allow imports of soyabean and corn, but India is worried about allowing genetically modified crops.
The US hopes to sell more to India, as China is buying less from them.
Some Indian farmer groups are against the trade, fearing it would harm their business.
This trade could affect what foods are available and how they are grown in both countries.
The US is considering keeping dairy out of the India-US trade deal.
The US is pushing for concessions on agricultural products including soybean and corn.
India is hesitant to allow imports of GM soybean and corn due to existing laws.
The US wants to increase its exports to India to compensate for declining exports to China.
Indian farmer bodies object to allowing subsidized US farm products and GM crops.
- Who
- The United States, India, and various farmer bodies.
- What
- Negotiations for a Bilateral Trade Agreement (BTA) between the US and India.
- When
- Negotiations ongoing, with the first phase of the BTA expected by Fall 2025.
- Where
- India and the United States.
- Why
- To establish a mutually beneficial trade agreement, resolve trade disputes, and increase market access.
Indian Farmer Concerns
US Trade Objectives
Agricultural Trade and GM Crops
Indian Farmer Concerns
Allowing subsidized US agricultural products and GM crops could harm Indian farmers.
US Trade Objectives
The US seeks greater access for its agricultural exports, including GM crops, to India.
- Trade Agreement
- India-US Bilateral Trade Agreement (BTA)
- US Stance
- Wants concessions on soybean and corn.
- India Stance
- Wants dairy excluded; hesitant on GM crops.
- US Exports to India (CY2023)
- $373 million
- India Exports to US (FY25)
- $6.25 billion
Sources
US may agree to keep dairy out of trade deal but is insistent on soyabean, corn, say sources
India says a strong 'no' to US 'non-veg milk': Know what is it and why India won't import American dairy
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India needs to be careful, clever while negotiating trade pact with US: Raghuram Rajan
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India must play it smart: Ex-RBI chief Raghuram Rajan sounds alert on agri trade with US - Telegraph India
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