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HomeIndiaUS-India deal will benefit farmers & traders—RSS affiliates come out in govt...

US-India deal will benefit farmers & traders—RSS affiliates come out in govt support amid Oppn attack

Factsheet says India intends, not pledges, to buy goods worth $500 billion from the US, Swadeshi Jagran Manch co-convener Ashwani Mahajan claims.

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New Delhi: Rashtriya Swayamsevak Sangh’s affiliate groups in the farming and trading sectors have backed the interim US-India trade deal, saying that the framework released by the two countries earlier this week will be beneficial to New Delhi’s economic interests.

The Bharatiya Kisan Sangh (BKS) and Swadeshi Jagran Manch (SJM) said the deal would serve India’s overall economic interests while addressing concerns through protective provisions.

SJM national co-convener Ashwani Mahajan told ThePrint the deal has several aspects and must be viewed unbiasedly. He said the agreement could benefit the labour-intensive industries particularly, though concerns about subsidised US agricultural products, including genetically modified varieties, needed addressing in the final agreement via “tariff rate quota provisions, as promised by the Commerce Minister”.

“The $500 billion figure sparked confusion. India expressed only an intention to buy—there is no firm commitment or pledge. The US statement has clarified it’s an intention, not a commitment,” Mahajan said.

He said more details would emerge over time, adding that rising imports stemmed partly from the lifting of US sanctions on India. “This includes aircraft, aircraft parts, tech, and ICT. No trade deal guarantees purchases; they depend on competitiveness and price,” he claimed.

The Opposition has criticised the BJP government over the deal, with the Leader of Opposition in Lok Sabha Rahul Gandhi telling the House on Wednesday that the India-US interim trade agreement compromises the country’s energy security and undermines farmer protections. He accused Prime Minister Narendra Modi of “surrendering” New Delhi’s interests under pressure, claiming that India faces an 18 percent tariff versus 0 percent for the US.

Responding to this, Mahajan said the relative tariff structure actually favours India. “We have been hearing that India faces 18 percent tariffs versus 0 percent for the US, but we should remember that other US partners endure over 18 percent. Trade theory emphasises relative tariffs—not absolute ones—which act as a tax on US consumers and producers, so India holds the advantage and all experts agree on this,” he said.

On Russian oil purchases, Mahajan said they would remain unaffected. “The US interim agreement lacks any framework on Russian oil, so it’s outside the deal. US statements imply India will drop its 25 percent punitive tariff on their goods in exchange for halting Russian oil buys—but India has no such obligation. We uphold our sovereign rights. Punitive US tariffs violated trade norms; their removal is welcome. Indian oil companies will decide purchases—private firms may avoid US confrontation,” he said.

He added that the advantage of Russian oil purchases has receded over the years, with oil companies now calculating disadvantages from US sanctions and taking informed decisions. However, he stressed: “It’s our sovereign right to decide what to buy from whom.”

“Beyond boosting exports, the deal resolves US sanctions blocking Indian shipments of strategic goods like aircraft parts. Exporters confirm they’re pleased—they can now operate smoothly,” Mahajan said.

He highlighted key changes in US statements. The original framework statement “pointed out that India (is) committed to buy more American products and purchase over $500 billion of US energy, information and communication technology, agricultural, coal, and other products”.

The revised statement, he said, now clarifies that India intends to buy more American products worth over $500 billion in US energy, ICT, coal, and other products. “Apart from dropping agricultural products from their revised ‘factsheet’, mention of pulses has also been removed. While signing the final deal, the government should ensure GM food does not enter Indian ports or kitchens,” Mahajan said.

BKS thanked the government for clarifying that GM crop imports are not permitted and welcomed the deal. “The Commerce Minister has clarified that GM crop imports are not permitted. Indian farmers, health professionals, and BKS are confident in this and thank the government,” the organisation said.

It said it does not support the politics surrounding the trade agreement, including protests, demonstrations, and Bharat Bandh calls in farmers’ names.

BKS general secretary Mohini Mishra told ThePrint that exporting Indian agricultural products to a major market like the US would help farmers get better prices. “In this context, many products—including spices, tea, coffee, coconut, coconut oil, betel nut, cashew, vegetable wax, avocado, banana, guava, mango, kiwi, papaya, pineapple, mushrooms, and some grains—that previously faced high US export duties will benefit from reduced or eliminated duties. The cap on US imports is expected to help Indian farmers,” he said.

“This will increase the likelihood of large and small farmers receiving good prices. BKS welcomes and thanks the government,” he added.

Mishra said farmers stand to gain substantially from the India-US trade agreement as per available information. “The ban on imports of many US agricultural products will move us towards self-reliance—something BKS welcomes. We will share views on crop processing issues like soybean oil and DDGS after getting more details from the government post-finalisation, likely in March. So far, the government’s decisions indicate Indian farmers will benefit significantly,” it said.


Also Read: Modi government’s trade deal with US resembles an IMF bailout


 

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1 COMMENT

  1. The affiliates are liars – just like their parent the sangh. double-speak is the name of their game – most untrustworthy T-Rex. Its better to admit that before the economic might o f the USA, we will have to surrender – as we gain by exporting billions of IT software.. Its like stooping to conquer – and some of the profits from the software sale can be diverted to support agriculture.

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