Chidambaram: India Must Retain Agri-Dairy Protections
In a wide-ranging interview, former Finance Minister P. Chidambaram underscores the vital importance of protecting India’s agricultural and dairy sectors amid mounting global trade pressures. He asserts that these sectors aren’t just economic contributors—they are lifelines for a vast swathe of India's workforce. With agriculture and dairy employing approximately 45% of the population—far exceeding the size of the U.S. population—a liberal trade posture could jeopardize millions of livelihoods.
Chidambaram’s key message: India’s domestic protections for farmers and dairy producers must remain non-negotiable, even as it explores new trade agreements. He suggests targeted use of stiff tariffs on certain U.S. imports, allowing India to shield sensitive sectors while remaining open in other areas.
This nuanced strategy reflects his belief that, unlike developed economies such as Japan or South Korea—which can afford fully open trade—India's trade policy must be crafted to balance growth with domestic welfare. He emphasizes that food markets and dairy chains are critical not just for export growth, but for sustaining rural incomes and socio-economic stability in a populous emerging economy.
Against the backdrop of rising global protectionism, Chidambaram warns that tariff wars threaten the post-WTO rule-based trade order, which has underpinned decades of economic progress. While India must diversify export and trade partnerships, he underlines that pledges to support farmers can’t be compromised in pursuit of deals.
Industry Insight
From a dairy and agri-trade standpoint, Chidambaram’s remarks signal that safeguarding domestic producers—particularly dairy co-ops and smallholder farms—remains paramount. Strategic, calibrated tariff policy may be the most viable means to preserve sector resilience while navigating global trade shifts.
Source : Dairynews7x7 Aug 26th 2025 Read Full story here