Liabooks Home|PRISM News
Modi-Trump Trade Deal Sparks Farmer Revolt in India
EconomyAI Analysis

Modi-Trump Trade Deal Sparks Farmer Revolt in India

2 min readSource

Indian farmer organizations blast New Delhi's trade pact with Washington, claiming agriculture was sacrificed for closer US ties. Political calculation meets ground reality.

200 million Indian farmers just got thrown under the bus. That's the harsh verdict from agricultural organizations across India, as they blast Prime Minister Modi's trade deal with Trump as a betrayal of the country's farming backbone.

The Deal's Double Edge

On paper, the agreement looks like a win. US tariffs on Indian goods dropped from 50% to 18%, opening doors for IT services, pharmaceuticals, and textiles. Companies like Tata Consultancy and Infosys are celebrating—their path to American markets just got smoother.

But dig deeper, and the picture darkens. The deal includes provisions for increased US agricultural imports and reduced farming subsidies. For India's 600 million people dependent on agriculture, this isn't progress—it's a death sentence.

Strategic Gains, Human Costs

Modi's calculation is clear: avoid Trump's tariff hammer while aligning with Washington against Beijing. The stock market agreed, surging 3.2% after the announcement. Foreign investors poured in, betting on India's tech sector boom.

Yet in Punjab's wheat fields, the mood is apocalyptic. "How do we compete with American wheat when our average farm size is 2.3 acres?" asks Rajesh Kumar, a farmer union leader. "This isn't free trade—it's economic colonization."

Winners and Losers Clearly Defined

The beneficiaries are obvious: large corporations with global ambitions. Wipro, Dr. Reddy's, and textile giants now have preferential access to the world's largest market.

The casualties are equally clear. Small-scale farmers producing wheat, rice, and sugar face an existential threat. Internal agriculture ministry projections suggest farm incomes could drop 15-20% over three years. For families already earning just $200 monthly, this could mean destitution.

The Political Gamble

Modi's betting that urban voters and corporate success will outweigh rural discontent. It's a dangerous wager. Farmers represent 58% of India's workforce, and they vote. The 2020-21 farmer protests nearly brought his government to its knees.

Opposition parties are already mobilizing. "Modi has sold India's soul to Trump," declared Congress leader Rahul Gandhi. With state elections looming, agricultural anger could reshape India's political landscape.

This content is AI-generated based on source articles. While we strive for accuracy, errors may occur. We recommend verifying with the original source.

Thoughts

Related Articles