India-US trade deal: Goyal’s assurances mask deeper shifts in Global South trade politics |
Indian Trade Minister Piyush Goyal’s detailed briefing on New Delhi’s newly announced trade understanding with Washington marks a significant recalibration in India–US economic relations, with implications extending far beyond bilateral tariffs. While the Indian government has sought to reassure domestic constituencies-particularly farmers and dairy producers-that sensitive sectors will remain protected, the deal reflects broader geopolitical and economic realignments shaping the Global South, including Bangladesh.
Speaking at a press conference on February 3, Goyal emphasized that agriculture and dairy-long flashpoints in US-India trade negotiations-would remain shielded from American imports. “Prime Minister Narendra Modi has always taken care of agriculture and dairy,” Goyal said, stressing that the government remains committed to safeguarding livelihoods in these politically sensitive sectors. The remarks were clearly aimed at pre-empting backlash from farmers’ groups, whose protests in recent years have forced New Delhi to retreat from market-oriented reforms.
Agriculture has historically been the most contentious issue in US-India trade talks. The structural asymmetry is stark: Indian farmers typically operate on small, fragmented landholdings, while the average American farm spans around 440 acres (178 hectares), benefiting from scale, mechanization, and heavy subsidies. Any abrupt opening of India’s agricultural markets risks undercutting millions of small producers, a political reality no Indian government can afford to ignore.
Yet beyond domestic assurances, Goyal’s comments reveal a deal that is still evolving.........