Enterprise & Industry

Modi faces farmer revolt over US trade deal amid US-China tensions

Thousands of Indian farmers march to Delhi against 'secret' US agricultural concessions.

Deep Dive

Indian Prime Minister Narendra Modi is confronting a mounting domestic crisis as thousands of farmers from Punjab march toward New Delhi, protesting what they call a 'secret' trade deal with the United States. The proposed agreement would give US agricultural exports—soybean oil, feed grains, and dairy products—greater access to Indian markets, undercutting local farmers' livelihoods. Authorities have blocked major highways to stop the demonstrators, but the backlash signals deepening political risks for Modi as his government deepens strategic alignment with Washington against Beijing.

The protests are directly tied to the ongoing US-China trade war: after China slashed purchases of American soybeans in response to Trump's tariffs, the US is seeking alternative buyers like India. Trump is simultaneously pressuring Modi on Russian oil imports and demanding India reduce its economic dependence on China. Experts like Sadanand Dhume of the Council on Foreign Relations describe this as a 'perfect storm' of geopolitical turmoil and domestic unrest. The outcome will test whether India can balance its economic interests with two superpowers while maintaining political stability at home.

Key Points
  • Thousands of farmers from Punjab marched to Delhi opposing a US trade deal that would open India to cheaper American soybean oil, feed grains, and dairy.
  • The protests follow US efforts to redirect agricultural exports displaced by China's reduced soybean purchases amid Trump's tariffs.
  • Modi faces a 'perfect storm' of domestic unrest and pressure from Trump on Russian oil purchases and reducing dependence on China.

Why It Matters

This domestic backlash could reshape India's strategic alignment with the US and disrupt global agricultural trade flows.

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