Key facts
- Farm bodies and trade unions wrote to PM Modi opposing US FTA
- Groups fear cheap US agricultural imports will hurt Indian farmers
- Unions warn liberalised goods imports could cost manufacturing jobs
- India-US trade talks at sensitive stage with framework deal being pursued
A broad coalition of farm organisations and trade unions has formally written to Prime Minister Narendra Modi, calling on the government to resist any Free Trade Agreement with the United States that compromises the interests of Indian farmers and industrial workers, according to The Hindu.
The letter comes at a critical moment in India-US trade negotiations, with Trade Minister Piyush Goyal publicly pushing for preferential tariff access to the American market and both governments working toward a framework agreement. The farm bodies and unions fear that in the rush to secure a deal, New Delhi may agree to lower import duties on American agricultural commodities — including dairy, poultry, and genetically modified crops — flooding domestic markets and depressing prices that millions of Indian farmers depend on.
Labour unions have raised parallel concerns about the industrial goods dimension of any agreement. They argue that US-manufactured goods entering India at reduced tariffs could undermine domestic manufacturing in sectors the government is simultaneously trying to build up through its Production Linked Incentive schemes.
The opposition echoes concerns that have scuttled or delayed previous Indian trade negotiations, including talks with the European Union and the Regional Comprehensive Economic Partnership, which India ultimately chose not to join. Whether the Modi government can balance its export ambitions with the domestic sensitivities of the farm and labour constituency — both of which carry considerable political weight — will be one of the central tensions of the coming months of trade diplomacy.