'No matter how much pressure comes...': PM Modi's promise to small entrepreneurs amid US tariffs

Prime Minister Narendra Modi on Monday assured farmers, small shopkeepers, and entrepreneurs that his government would protect their interests amid rising trade tensions with the United States.  

Speaking at an event in Ahmedabad, Modi said global politics was increasingly being shaped by economic interests but stressed that India's rural economy would remain safeguarded. "Today in the world, everyone is busy doing politics based on economic interests. From this land of Ahmedabad, I will tell my small entrepreneurs, my small shopkeeper brothers and sisters, my farmer brothers and sisters, my animal husbandry brothers and sisters and I am saying this on the land of Gandhi - be it the small entrepreneurs, farmers, or animal keepers of my country, I promise you again and again, your interests are paramount for Modi,” he said.  

He added that his government would not bend under outside pressure. "My government will never let any harm come to the small entrepreneurs, farmers, and animal keepers. No matter how much pressure comes, we will keep increasing our strength to withstand," the prime minister said.  

Highlighting the state's role in India’s economic journey, he said: "Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work."

Modi's remarks come as trade negotiations between India and the US face a deadlock. Washington has been pressing for greater access to India's agricultural and dairy markets, demanding tariff cuts on goods such as genetically modified (GM) crops, corn, soybeans, dairy, apples, almonds, and ethanol.  

New Delhi, however, has resisted, citing the livelihoods of millions of rural households. According to Sankhanath Bandyopadhyay, economist at Infomerics Valuation and Ratings, "Agricultural and dairy product protections remain primary concerns, as these sectors are politically and economically sensitive for India. Hence, India is negotiating with the U.S. against any tariff reductions on dairy, rice, wheat, and genetically modified (GM) crops like corn and soybeans citing the livelihoods of over 700 million rural citizens, including 80 million smallholder dairy farmers."  

Bandyopadhyay added that the US continues to push for wider access. "The US is pushing for greater access to India's agricultural market, particularly for GM crops, dairy, and products like corn, soybeans, apples, almonds, and ethanol, insisting on tariff reductions in these sensitive sectors, a move India continues to oppose," he said.  

Officials in New Delhi argue that lowering tariffs in these areas would put at risk food security and rural incomes. They point out that while India has opened its energy and defence sectors to US imports, Washington has not reciprocated with equally strong commitments.