%20(3).jpg)
Why Agriculture Remains India’s Most Sensitive Sector in Global Trade Talks
In India, agriculture is not just a source of employment, but a part of rural life, providing livelihoods to over 700 million people. Large companies from developed countries can impact farmers' incomes by supplying cheap grains to the Indian market. The US, Australia, and Europe consider India a key market for agricultural exports.
In the case of India, agriculture is not just an economic activity, it is a way of life and a highly sensitive sector for the Indian economy. Agricultural and animal husbandry activities are the backbone of the Indian economy in the rural sector, employing over 700 million people. While agriculture in developed economies is highly mechanized and corporate in nature, in the case of India, it is a matter of survival.
More than 90% of the world food trade is dominated by only five multinational corporations, which have traditionally employed competitive pricing strategies in the market. If India allows duty exemptions on agricultural imports to multinational corporations of developed countries, which heavily subsidize their farmers, then India may be flooded with cheap food items. This would affect the income of Indian farmers adversely.
India is largely self-sufficient in grain production, while agriculture is a major commercial industry for countries like the United States, Australia, and the European Union. Large-scale mechanized farming and heavy government subsidies make the United States and other developed countries consider India an attractive market for their export expansion. According to a report, US agricultural exports were expected to reach $176 billion in 2024, representing approximately 10% of India's total commodity exports.
%20(5).jpg)
