US Trade Deal: Cheaper Imports Threaten Indian Farmers Amidst Economic Gains

• India's interim trade framework with the US reduces or eliminates taxes on American industrial and agricultural products, while the US maintains an 18% reciprocal tax on Indian goods.
• The deal could significantly impact Indian farmers and the domestic agricultural industry due to cheaper imports of items like dried grains, soybean oil, nuts, fruits, wine, and spirits.
• Imported Dried Distillers Grains (DDGS) and red sorghum from the US could pressure Indian distilleries, maize farmers, and the poultry/animal feed industries.
• While consumers may benefit from cheaper soybean oil, nuts, fruits, and alcohol, Indian farmers face risks of reduced crop prices and agricultural income.
• The deal's long-term impact on India's balance of payments is a concern if imports surge without a corresponding increase in exports.