India's Modi unwilling to compromise on agriculture as US tariff war escalates

NEW DELHI, Aug 7, 2025 (AFP): Prime Minister Narendra Modi said Thursday he would not compromise on the agriculture sector, a day after US President Donald Trump announced 50 percent tariffs on Indian goods.

Washington announced the hike in levies on Wednesday, citing New Delhi's purchasing of Russian oil, a key revenue source for Moscow's war in Ukraine.

For New Delhi, one of the main sticking points in trade negotiations has been Washington's demand to access India's vast agricultural and dairy market.

India has remained steadfast about its labour-intensive agricultural sector, unwilling to risk angering farmers, a powerful voting bloc.

"We will not compromise with the interests of our farmers, our dairy sector, our fishermen," Modi said during a speech at a conference in New Delhi, his remarks widely seen as his first public response to the tariffs.

"I know I will have to pay a personal price for this, but I am ready for it," he added, without giving further details.

India has also refused to allow the import of genetically modified products.

Additionally, New Delhi fears that allowing the import of dairy products may upset the cultural and religious sensitivities of India's majority Hindus, who revere cows as sacred.

It seems a far cry from India's early hopes for special tariff treatment.

In February, Trump said that he found a "special bond" with Modi when he visited Washington -- complimenting Modi as being a "much tougher negotiator" than he was.

Successive US administrations have seen India -- the world's most populous nation and fifth-largest economy -- as a key partner, with like-minded interests in the face of powerful China.

India and neighbouring China have long been intense rivals competing for strategic influence across South Asia.

Modi, meanwhile, according to Indian media but not confirmed by officials, may visit China in late August, which would be his first visit since 2018.

Modi and China's President Xi Jinping last met in Russia in October 2024.