{"id":21288,"date":"2025-07-19T11:00:09","date_gmt":"2025-07-19T11:00:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/21288\/"},"modified":"2025-07-19T11:00:09","modified_gmt":"2025-07-19T11:00:09","slug":"india-needs-to-be-very-careful-and-clever-in-us-trade-deal-talks-says-raghuram-rajan-flags-farm-import-risk","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/21288\/","title":{"rendered":"India needs to be ‘very careful and clever’ in US trade deal talks, says Raghuram Rajan; flags farm import risk"},"content":{"rendered":"

\"India India needs to be ‘very careful and clever’ in US trade deal talks, says Raghuram Rajan; flags farm import riskFormer Reserve Bank of India Governor Raghuram Rajan<\/a> has cautioned that India needs to be “very careful and clever” while negotiating trade agreements with the United States, especially in sectors like agriculture where developed economies provide far more subsidies to their producers.Speaking to PTI, Rajan said India\u2019s economic growth has \u201csort of settled in the range of 6\u20137 per cent\u201d, but warned that trade uncertainties \u2014 particularly around tariffs and subsidies \u2014 could hurt the country\u2019s farmers if not handled prudently.<\/p>\n

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\u201cI think where it is much more sort of difficult (trade negotiations) is in areas such as agriculture, where every country subsidises its producers, and our producers may be relatively smaller, may have somewhat lower subsidies\u2026 unconstrained flow of agricultural products into the country may create problems for them,\u201d Rajan said.His remarks come days after the Indian negotiating team concluded the fifth round of talks for a proposed Bilateral Trade Agreement (BTA) with Washington. US President Donald Trump has said any pact with India will be on the lines of the one signed with Indonesia \u2014 a deal that has sparked domestic political concerns in India over demands to open the agricultural and dairy markets.Rajan, now a professor at the University of Chicago Booth School of Business, said that India should explore alternative strategies such as encouraging foreign investment in value-added processing. \u201cCan we encourage more foreign direct investments from those countries to enhance the value added in some of those sectors \u2014 the milk for example, sort of improving the value added in our milk products, milk powder, cheese, etc, could be beneficial to our milk producers,\u201d he said.US tariff threats and India\u2019s positioningRajan added that while trade tensions are generally negative for exports and investments, India could gain in relative terms if it is seen as an alternative to other Asian manufacturing hubs affected by US tariffs.\u201cBut you must remember that there are opportunities also in what is happening to the extent that India is perceived as an alternative route to some of the other regions like the United States,\u201d he said.India has asked Washington to roll back additional tariffs \u2014 including 26% on key goods \u2014 and ease steep duties on steel, aluminium (50%) and autos (25%). Trump\u2019s proposed tariffs, first announced in April, were initially delayed to July 9 and are now set to take effect from August 1.Rajan downplayed immediate economic risks from such duties, noting that India’s manufacturing exports to the US are still small. \u201cAny kind of tariffs (on India) will have some modest dampening effect, but not a lot,\u201d he said.India must reverse some protectionismOn India’s own tariff regime, Rajan said that the country has become more protectionist in some areas and urged a rethink.\u201cThere are certain areas where India has become more protectionist\u2026 certainly we can reverse that protectionism,\u201d he said. \u201cThese are areas where India has been historically protectionist, and bringing down the level of tariffs, increasing competition in those sectors can be quite beneficial.\u201dHe cited car manufacturing as an example. \u201cWe have some advantages. We produce certain kinds of cars very well, and bringing competition in the automobile sector can actually be quite beneficial,\u201d Rajan said.In his view, India’s long-term economic prospects remain strong. While global tariffs may shave off a fraction of growth in the short run, he said, \u201cIn the longer term, this would spell opportunity for India.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"India needs to be ‘very careful and clever’ in US trade deal talks, says Raghuram Rajan; flags farm…\n","protected":false},"author":2,"featured_media":21289,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[19360,9087,28,101,19359,19358,19357,19356],"class_list":["post-21288","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-agriculture-market-opening","tag-bilateral-trade-agreement","tag-business","tag-economy","tag-foreign-investment-in-india","tag-india-agriculture-subsidies","tag-raghuram-rajan","tag-us-trade-deal-talks"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/21288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=21288"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/21288\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/21289"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=21288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=21288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=21288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}