India EU FTA: Modi Govt Shields Farmers from Import Duty Cuts in Major Trade Move

In the ongoing Free Trade Agreement (FTA) negotiations between India and the European Union (EU), the Narendra Modi-led government has taken a firm stand to prioritize the interests of Indian farmers. Despite international pressure to open up markets, India has clearly demarcated sensitive sectors that will remain protected from any import duty concessions. This move is seen as a significant victory for the domestic agricultural community.

Protected Sectors: No Compromise on Agriculture

According to official sources from the Ministry of Commerce, India has excluded several key sectors from the ambit of duty relaxations. These include dairy, rice, wheat, pulses, tea, coffee, and genetically modified (GM) products. By keeping these items in the 'sensitive list,' the government ensures that high import duties will continue to. Act as a barrier against cheap foreign imports that could potentially destabilize the local market and hurt farmers' income.

The Red Line on Dairy

The dairy sector remains a non-negotiable area for India. As the world's largest milk producer, India's dairy industry is the. Backbone of its rural economy, supported by millions of small-scale farmers. The government has reiterated its long-standing policy of not granting import duty concessions for dairy products in any FTA. Officials emphasized that protecting this sector is crucial for social stability and rural livelihood. Other protected items include poultry, cheese, maize, nuts, edible oils, fruits, vegetables, and tobacco.

EU's Reciprocal Exclusions

The negotiations are a two-way street, and the European Union has also sought to protect its own sensitive industries, while the 27-nation bloc has excluded products such as meat and meat-related items, honey, rice, dairy products, sugar, and tobacco from the deal. This balanced approach ensures that while trade is liberalized in many areas, the core agricultural interests of both regions remain safeguarded.

A Boost for Indian Exports

While protecting domestic interests, the FTA is designed to provide a massive boost to Indian exports. Under the proposed agreement, many Indian agricultural products will gain duty-free or preferential access to the vast European market, while india is expected to get primary access for nearly 87% of its tariff lines in categories like spices, table grapes, tea, and coffee. This opens up a high-value market for Indian farmers and exporters.

Expanding the Marine Product Market

One of the biggest winners of this FTA will be the marine products sector, while currently, the EU imposes duties ranging from 0% to 26% on various seafood items. The agreement aims to Importantly reduce these tariffs. With the EU's marine import market valued at approximately Rs 4. 67 lakh crore, Indian exporters stand to gain a substantial share, leading to increased foreign exchange earnings and job creation in coastal regions.

Safeguarding Small and Marginal Farmers

The core philosophy behind these tough negotiations is the protection of small and marginal farmers. Unlike large-scale industrial farming in the West, Indian agriculture is characterized by small landholdings. By refusing to cut duties on essential crops, the Modi government is ensuring. That these farmers aren't exposed to unfair competition from subsidized European products. This strategic positioning aligns with the 'Atmanirbhar Bharat' initiative, fostering self-reliance in the food sector.