Proposed US Trade Policy Changes Could Risk India's Agricultural and Digital Security
India should critically evaluate each demand from the United States, prioritizing national interests, development objectives, and cultural values, according to the Global Trade Research Initiative (GTRI). The think tank expressed these concerns on Tuesday in response to the 2025 National Trade Estimate (NTE) Report released by the US Trade Representative (USTR).
In its analysis, GTRI highlighted that several proposals from the US, particularly those concerning agriculture, digital governance, and public health, pose significant risks. The think tank warned that accepting these proposals could undermine India's ability to protect small farmers, ensure food safety standards, preserve deep-rooted social norms, and safeguard the nation's digital security.
The USTR's report pinpoints various trade and regulatory hurdles between India and the US, covering tariffs, non-tariff barriers, intellectual property rights, services, digital trade practices, and transparency.
Ongoing Issues Highlighted in USTR Report
Commenting on the report, Ajay Srivastava, Founder of GTRI, noted that many concerns raised by the USTR are repetitive from previous years, with several already resolved or no longer relevant.
Addressing specifically India's restrictions on dairy imports, which mandate that animals must not be fed meat, blood, or internal organs of other animals, Srivastava explained, "America perceives these conditions as overly restrictive. However, envision consuming butter derived from cows fed on meat and blood from other cows—India may never permit such imports."
Digital Trade Policies a Major Area of Contention
Srivastava further pointed out that India's digital trade policies have become a particularly sensitive issue for the US. One key dispute arises from the Reserve Bank of India's (RBI) data localisation mandate, which requires foreign payment providers to store data locally within India.
"While the US considers India's data localisation policies burdensome for global cloud and payment service providers, India argues these measures are critical for ensuring data sovereignty and security," Srivastava said. He added that the US continues to press India to relax digital regulations, allowing unrestricted data flows that would primarily benefit US-based tech corporations.
GTRI urged Indian policymakers to remain vigilant, carefully analyzing each US proposal to ensure alignment with India's broader national interests and developmental priorities.