NITI Aayog Pushes for Trade Liberalization to Strengthen India’s Global Agri-Trade Footprint

Key Highlights:

• Ramesh Chand, Member (Agriculture) at NITI Aayog, stated that trade liberalization is crucial for boosting India’s farm exports.
• He highlighted that India has room to lower import tariffs without risking a flood of imports, thereby opening opportunities for farmers in global markets.
• Chand pointed out that bilateral trade agreements should be prioritized, as they can provide Indian agriculture with preferential access to key markets.
• Over the past 25 years, trade liberalization has already helped India expand its agricultural exports, and further reforms could accelerate this growth.
• The United States, facing trade tensions with China, has shown interest in exporting commodities like corn, cotton, and soybeans to India, which could reshape bilateral trade dynamics.

Contextual Insight:  
India’s agricultural sector contributes significantly to GDP and employment, yet its share in global exports remains modest. Chand’s remarks underline the need for policy reforms that align domestic agriculture with international demand. By reducing barriers and embracing liberalization, India can enhance its competitiveness in crops such as rice, spices, fruits, and processed foods.

Market Impact:  
Trade liberalization could increase farmer incomes, attract foreign investment in agri-infrastructure, and strengthen India’s role in global supply chains. However, it also requires robust safeguards to protect small farmers from volatility and ensure that benefits are widely distributed. Analysts believe that India’s ability to negotiate favorable trade deals will be critical in realizing this potential.

Broader Significance:  
This push for liberalization aligns with India’s broader economic strategy of integrating with global markets while modernizing domestic agriculture. If implemented effectively, it could transform India into a leading agri-export hub, supporting both rural development and national economic growth.

Sources: Reuters, CNBC-TV18, The Indian Express