Guwahati: India and the United States have resumed trade negotiations, marking the first in-person talks after Washington imposed a steep 50% tariff on Indian goods last month.
The resumption comes after a notable shift in the US approach, with Washington offering concessions on niche agricultural products instead of demanding broad access to India’s sensitive dairy and farm markets.
A senior US official said the focus is now on selling premium cheese varieties—including blue-veined, artisanal, and powdered cheese—to India, rather than competing in the mass dairy segment.
These products are consumed by just 2–5% of India’s population and are already imported from countries like Italy, Lithuania, and the UK at duties of 30–40%.
In the agricultural sector, the US is seeking access for its corn exports, particularly genetically modified varieties. However, India currently prohibits GM corn for human consumption and cultivation due to health and ecological concerns. A potential compromise could involve using US GM corn for ethanol production rather than direct consumption.
The US shift comes amid declining profits in its agricultural sector, which has been hit hard by the trade war with China. Reduced Chinese orders for soybeans and corn have left American granaries overflowing, prompting Washington to adopt a more pragmatic stance with India.
India has largely maintained a measured approach throughout the trade tensions. Prime Minister Narendra Modi emphasized a “swadeshi” push and stood firm in protecting Indian farmers’ interests, while allowing negotiations to progress without escalating rhetoric.
The resumption of talks is seen as a strategic step for both nations. For India, symbolic concessions from the US may help pave the way for a reduction in tariffs. For the US, India represents a massive market and a key strategic ally in Asia, serving as a counterbalance to China.
This development signals a turning point in India-US trade relations, with both sides seeking pragmatic solutions to longstanding trade barriers while maintaining broader geopolitical and economic cooperation.