Trump’s tariffs might not have a significant impact on India’s agricultural sector, according to economist Ashok Gulati

According to agricultural expert Ashok Gulati, the increased tariffs imposed by the United States may not have a significant impact on India’s agricultural exports. He says that depending on how tariffs are set for other nations, India may be able to gain an advantage through astute negotiating during bilateral trade talks

According to prominent Indian agricultural economist Ashok Gulati, who teaches at the Indian Council for Research on International Economic Relations (ICRIER), India is unlikely to suffer significant losses in its agricultural exports as a result of the additional tariffs that US President Donald Trump has imposed.

In fact, he said, India might even make some progress in bilateral trade discussions with the US if it negotiates sensibly.

Gulati stated, “India may lose out on exports of that goods if rival nations are subject to lower tariffs than India. India may not lose much in agriculture overall, it appears. However, we might benefit from wise BTA negotiations.

Gulati added that different agricultural products will be affected differently by these levies. The way the US imposes tariffs on India and other rival nations is one of the variables that will affect the outcome in the end.

According to the trade paper, Indian agricultural exports to the US are currently subject to a 27 per cent tariff under the new policy. What matters most, though, is how these tariffs stack up against those imposed on nations that rival India in the same product categories.

For instance, India may profit if rice from other countries like Vietnam and Thailand is subject to even higher taxes while Indian rice is only subject to a 26% tariff. However, India may lose market share in the US if those nations are subject to lower tariffs.

“The impact of Trump’s tariffication will be quite varied across different agri-commodities,” Gulati continued. One must consider both the tariff rate on Indian exports (26 percent) and the tariff rates on shipments from rival nations to the United States in order to calculate the anticipated impact.

Gulati underlined that strategic negotiating is crucial. India may be able to turn the tariff issue into an advantage if it can reach a positive bilateral trade agreement (BTA) with the US. “Overall, it seems India may not lose much in agriculture,” he stated. “But if we negotiate smartly in the BTA, we may gain.”