Union Commerce and Industry Minister Piyush Goyal on Thursday asserted that India will never compromise on the interests of its farmers, fishermen, micro, small and medium enterprises (MSMEs) or its religious sentiments. This came as the country is currently navigating global trade challenges, including recent US tariff actions.
Earlier this year, Indian negotiators drew a firm line on the import of American dairy products. Authorities cited significant differences in animal feeding practices and confirmed that unless the US agreed to either alter these practices or adopt India’s vegetarian certification norms, India will stand firm on keeping dairy items such as butter and cheese off the table.
The Indian side also told the US side that the issue is not merely technical or commercial but also involves "deep social and cultural sensitivities."
“In the case of dairy products, it has been raised that the feeding practices in the US differ significantly from those in India,” one of the sources told Mint. “In the US, cattle are fed with stalled feed, which includes animal-based protein sources, a practice that raises concerns in India.
“India is predominantly a domestic economy. Our exports as a part of GDP are still relatively low, while imports are much higher. I don’t think the impact on GDP will be significant,” Goyal said, downplaying concerns that US tariff measures could dent growth of the country.
The minister highlighted that India’s exports to the US had already crossed $40–43 billion between April and August this year, compared to $86 billion in the last fiscal. “We still have seven months to go,” he said, adding that reciprocal tariffs were not across the board but applied to only 55–60% of exports.
Further talking about the Indian economy and US tariffs, Goyal also said newer markets were opening up as US tariff measures targeted many other countries as well. “Newer markets are opening up, the action on tariffs are on many other countries, which opens up trade with many other countries. We are looking at 50 nations on where we have trade compatibility,” he added.
Recalling the COVID-19 period, Goyal noted that India had posted a trade surplus because imports fell more sharply than exports. “During COVID, we landed up with a trade surplus because imports fell more than exports. So the Indian economy is more complex, I don't think the impact on GDP will be significant,” he said.
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