According to the Global Trade Research Initiative (GTRI), India must carefully assess every trade-related demand from the US, ensuring alignment with its national priorities, development objectives, and cultural values. As the US continues to pressure India to amend its trade policies, GTRI emphasises the importance of safeguarding key domestic interests in agriculture, digital governance, and public health.
Risks in agriculture and food safety
One of the key concerns raised by the US Trade Representative’s (USTR) National Trade Estimate (NTE) Report 2025 is India’s restriction on dairy imports. India mandates that dairy products must come from animals that have not been fed meat, blood, or internal organs of other animals. The US views this requirement as overly strict, but for India, it is a non-negotiable aspect of food safety and religious beliefs. GTRI underscores that any compromise on this front could lead to significant cultural and ethical dilemmas.
Digital trade and data sovereignty
India’s digital trade policies, particularly data localisation requirements enforced by the Reserve Bank of India (RBI), remain a contentious issue. The US sees these regulations as restrictive and an impediment to global cloud and payment services. However, India defends them as essential for ensuring data sovereignty and national security. GTRI warns that dismantling these regulations under US pressure could weaken India’s control over its digital economy.
Need for strategic trade policy
The USTR report highlights recurring trade challenges between the two nations, covering tariffs, non-tariff barriers, intellectual property rights, and transparency issues. While some concerns raised in previous reports have been addressed, many remain unresolved. GTRI’s founder, Ajay Srivastava, asserts that India should not make trade concessions that undermine its long-term economic stability and policy autonomy. “Most of the issues are repeat of the earlier reports. Few have been resolved and are no longer relevant,” GTRI Founder Ajay Srivastava said.
India must approach trade negotiations with the US with a firm stance, ensuring that its policy decisions are in harmony with national priorities. While trade relations with the US are crucial, India cannot afford to compromise on critical areas such as food safety, digital sovereignty, and the protection of small farmers. GTRI’s assessment highlights the need for a balanced approach that safeguards India’s strategic interests while fostering international trade partnerships.
(With PTI inputs)
