India's Agricultural Trade Policy
Protection vs. Liberalisation Debate
India has historically maintained a protective stance on agricultural trade, rooted in food security concerns and the livelihood dependence of nearly 42-43% of the workforce on agriculture. This protectionist approach manifests through high tariffs, quantitative restrictions, and the use of safeguard mechanisms.
- Agriculture contributes approximately 18% of India's GDP but employs 42-43% of the workforce, making it politically sensitive
- India's average applied tariff on agricultural products (30-40%) is significantly higher than for industrial goods (~13%)
- India has invoked the Special Safeguard Mechanism (SSM) at the WTO to protect against import surges in agriculture
- At the WTO, India has consistently demanded a permanent solution on public stockholding for food security, resisting pressure to limit its MSP-based procurement programmes
- India has kept agriculture largely outside its recent bilateral agreements (e.g., limited agricultural concessions in ASEAN FTA, Japan CEPA)
● Tracked since February 07, 2026 · last seen June 23, 2026 · updates as the daily brief publishes
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