The electoral victory for Indian Prime Minister Narendra Modi’s party in a key state is set to pave the way for New Delhi to make farm-related concessions, a central demand of U.S. trade negotiators.
The National Democratic Alliance (NDA), led by Bhartiya Janta Party (BJP), is poised for landslide victory in Bihar with trends showing it leading in nearly 200 of the 243 seats, while the opposition is ahead in less than 30 seats, data from India’s election commission shows.
A strong and positive verdict from Bihar — India’s third most populous state and a large producer of corn — is expected to encourage the government to conclude a trade deal with the U.S. Such a deal would include purchases of more agricultural products from the U.S., said Amitendu Palit, senior research fellow and research lead at the Institute of South Asian Studies.
However, these purchases of farm products from the U.S. will be “couched in a manner that does not suggest that the government is going to back away on its commitment to domestic farmers,” he said.
Indian exports to the U.S. currently face some of the highest tariffs, of 50%, but the two sides have been engaged in negotiations for a “fair trade deal.”
