33 C Agriculture / The Economic Times
The Indian government announced a significant transformation in the agricultural sector over the past 11 years, driven by increased budgetary support and farmer-centric schemes. This has led to a surge in foodgrain production, rising MSP for key crops like wheat and paddy, and substantial financial assistance to farmers through PM-KISAN and Kisan Credit Card schemes.
Despite the newly imposed 26% tariff by the U.S. on Indian goods, agricultural economist Ashok Gulati believes India may maintain or even expand its agricultural exports to the U.S. compared to regional competitors facing higher tariffs. With countries like China (34%), Vietnam (46%), and Thailand (36%) facing steeper duties, India holds a relative tariff advantage, especially in seafood and rice exports.
India has invoked the peace clause at the WTO for the sixth time after exceeding the 10% subsidy ceiling for its rice farmers, reaching around 12% with $6.81 billion in subsidies. The country explained that the support is aimed at ensuring food security for its poor and vulnerable population.