What’s in Today’s Article?

• Rail connectivity in Meghalaya Latest News
• Rail Connectivity Status in Meghalaya
• Reasons for Opposition to Railway Projects in Meghalaya
• Diverse Opinions on Railway Connectivity in Meghalaya
• Rail connectivity in Meghalaya FAQs

Rail connectivity in Meghalaya Latest News

• Despite years of opposition from Khasi pressure groups, the Indian Railways is set to abandon railway projects to Byrnihat and Shillong, leaving Shillong as the only state capital without rail connectivity. 
• Meanwhile, fresh protests have emerged in the Jaintia Hills against a newly sanctioned railway line to Jowai, the region's largest town.

Rail Connectivity Status in Meghalaya

• Meghalaya has only one operational railway station at Mendipathar in North Garo Hills, functional since 2014, with daily passenger trains to Guwahati. 
• The station also received its first freight shipment recently. 
• Apart from this, the Northeast Frontier Railways (NFR) had planned three additional projects in the state, but all face significant opposition.

Proposed Projects in Meghalaya

• Tetelia-Byrnihat Line (Sanctioned in 2010)
  • A 21.5 km railway line connecting Tetelia (Assam) to Byrnihat (Meghalaya).
  • Work on the 19 km Assam portion is complete, but resistance from local groups has stalled progress in Meghalaya.
  • The Railways is now considering terminating the line at the Assam border.
• Byrnihat-Shillong Line (Sanctioned in 2011)
  • A 108.76 km railway line with 10 stations connecting Byrnihat to Shillong.
  • In 2017, Rs. 209.37 crore was sanctioned for land acquisition, but Khasi Students’ Union (KSU) protests have blocked progress.
  • The Railways has now asked the state to return the unutilized funds.
• Chandranathpur-Jowai Line (Approved in 2023)
  • A proposed railway line from Chandranathpur (Assam) to Jowai (Meghalaya).
  • The project is still in the survey stage, but Jaintia pressure groups have already raised objections.

Overall Outlook

• While rail connectivity in Meghalaya remains limited, ongoing opposition from pressure groups has stalled or blocked multiple projects, leaving Shillong as the only state capital without a railway connection.

Reasons for Opposition to Railway Projects in Meghalaya

• Fear of Influx of Outsiders
  • The Khasi Students’ Union (KSU) has opposed railway expansion into the Khasi Hills since the 1980s.
  • Their primary concern is that railways will lead to large-scale migration, threatening the indigenous Khasi and Garo populations.
• Demand for Inner Line Permit (ILP)
  • The KSU has long demanded the introduction of the ILP regime, which restricts entry and stay of outsiders in protected areas.
    • ILP is already in place in Arunachal Pradesh, Nagaland, Mizoram, and Manipur.
  • Without ILP, they fear an "unabated flow of migrants" that could make indigenous communities a minority.
• Lack of Safeguards
  • KSU insists they are not against railways in principle but want legal safeguards like ILP before any project proceeds.
  • They argue that road travel can be monitored, but railway access would allow unchecked migration.
• Opposition Spreads to Jaintia Hills
  • The Jaintia National Council (JNC) has joined the opposition, citing the same concerns about protecting local identity and land.
  • JNC president reiterated that Meghalaya lacks a proper mechanism to regulate the influx of migrants.
• Overall Concern
  • Without protective measures like ILP, local groups fear that railway connectivity will accelerate demographic changes, threatening the cultural and economic security of Meghalaya’s indigenous communities.

Diverse Opinions on Railway Connectivity in Meghalaya

• Opposition as a Bargaining Tool for ILP
  • Supporters of the project argue that opposition groups are using the railway issue as leverage to push for the Inner Line Permit (ILP).
  • They contend that the general public is indifferent, and railway connectivity is essential for the state's economic growth.
• Economic Benefits of Railways
  • Meghalaya’s economy relies on small-scale agriculture (75%) and the service sector.
  • Road transport causes high inflation in goods prices, and rail connectivity could boost productivity and reduce costs.
  • Chief Minister Conrad Sangma supports railway expansion, emphasizing that it would improve trade, lower logistics costs, and benefit businesses and local entrepreneurs.
• Support for Rail Expansion in Garo Hills
  • Unlike opposition in Khasi and Jaintia Hills, many Garo leaders support railway expansion.
• Overall Perspective
  • While Khasi and Jaintia groups oppose railways due to migration concerns, economic arguments in favor of connectivity are gaining traction, especially in the Garo Hills, where leaders actively seek expansion.

Rail connectivity in Meghalaya FAQs

Q1. Why is there opposition to railway projects in Meghalaya?

Ans. Khasi and Jaintia groups fear an influx of migrants threatening indigenous identity and land rights.

Q2. What is the Inner Line Permit (ILP), and why is it demanded?

Ans. ILP restricts outsider entry, safeguarding indigenous communities; its absence fuels opposition to railways.

Q3. What are the proposed railway projects in Meghalaya?

Ans. Tetelia-Byrnihat, Byrnihat-Shillong, and Chandranathpur-Jowai lines face strong resistance from local groups.

Q4. How do Garo leaders view railway expansion?

Ans. Unlike Khasi and Jaintia groups, many Garo leaders support extending railways for economic growth.

Q5. What economic benefits can railways bring to Meghalaya?

Ans. Railways could lower transportation costs, reduce inflation, and boost trade and productivity in the state.

Source: IE | HT

What’s in Today’s Article?

• India’s Farm Market Latest News
• U.S. Push for Market Access Amid Tariff Threats
• Corn and Soyabean: India’s Growing Feed Demand
• Projected Demand Growth (Under Rapid Income Growth)
• Corresponding Import Needs (By 2040 & 2050)
• Barriers to U.S. Access in India
• Cotton: From Exporter to Importer
• U.S. Advantage in Cotton Trade
• India’s Animal Protein Market: The Larger Picture
• Conclusion
• U.S. Agricultural Exports to India FAQs

India’s Farm Market Latest News

• The US Department of Agriculture’s (USDA) recent report suggests that India’s demand for feed and ultimately the need for substantial imports of ingredients such as corn and soyabean is going to substantially increase “by the early 2030s”.

U.S. Push for Market Access Amid Tariff Threats

• Amid renewed threats from U.S. President Donald Trump to impose reciprocal tariffs on Indian exports starting April 2, Washington is pushing for greater market access for key agricultural commodities—particularly corn, soyabean, and cotton.
• These three crops are major U.S. exports, with their combined shipment value peaking at $62 billion in 2022. 
• With China scaling back its purchases of these commodities, India is emerging as an important potential buyer.

Corn and Soyabean: India’s Growing Feed Demand

• According to a recent U.S. Department of Agriculture (USDA) report, India is expected to see surging demand for animal-based products like milk, eggs, fish, and meat due to rising population and income levels.
• This will lead to a sharp rise in demand for livestock feed, especially corn and soyabean meal—both of which are core components of animal feed.

Projected Demand Growth (Under Rapid Income Growth)

• Corn consumption: 
  • 34.7 million tonnes (mt) in 2022-23; 98 mt by 2040; 200.2 mt by 2050
• Soyabean meal consumption: 
  • 6.2 mt in 2022-23; 30.9 mt by 2040; 68.3 mt by 2050

Corresponding Import Needs (By 2040 & 2050)

• Corn: 46 mt and 134 mt
• Soyabean meal: 19 mt and 53 mt
• Even under a more moderate income growth scenario, India would need to import 11 mt of corn and 6 mt of soyabean meal by 2040.
• While India currently imports very small quantities—only 178,969 tonnes of feed commodities in 2022—the USDA sees India as a high-potential market in the coming decades.

Barriers to U.S. Access in India

• Despite the growing demand, tariff and non-tariff barriers currently block U.S. farm exports to India.
• Customs duties: 45% on soyabean; 50% on corn
• Ban on genetically modified (GM) products: India restricts imports of GM corn and soyabean, which effectively shuts out U.S. supplies.
• Given this, the U.S. is expected to press India to relax these restrictions, potentially making access to Indian agricultural markets a key trade negotiation point.

Cotton: From Exporter to Importer

• The third commodity of interest is cotton, where India’s production has declined significantly in recent years, turning the country from a net exporter to a net importer.
• India’s cotton output:
  • Peaked at 39.8 million bales in 2013-14
  • Dropped to 29.9 million bales in 2024-25 (16-year low)
• Reasons for the decline:
  • Lack of approval for new GM cotton varieties since 2006
  • Resistance in existing Bt cotton hybrids to pests like pink bollworm and whitefly
• In contrast, India’s cotton imports are projected at 3 million bales in 2024-25, exceeding its exports (1.7 million bales).

U.S. Advantage in Cotton Trade

• The U.S. was the world’s top cotton exporter until Brazil overtook it in 2023-24.
• U.S. cotton exports to India: 
  • $491.2 million in 2022
  • $231.2 million in 2023
  • $210.7 million in 2024
• With India imposing only an 11% import duty, the U.S. could expand exports further, especially as India’s domestic production lags.
• The textile industry in India, which exported $10.8 billion worth of garments to the U.S. in 2024, may also benefit from duty-free raw cotton imports.

India’s Animal Protein Market: The Larger Picture

• India’s per capita consumption of animal products remains low at 82.6 kg in 2020, well below the global average of 143 kg.
  • Milk: 66.3 kg; Fish: 7.9 kg; Eggs: 3.9 kg; Chicken: 2.6 kg
• Still, production has been growing steadily, with impressive annual growth rates:
  • Chicken: 8.5%; Eggs: 5.8%; Bovine meat: 5.1%; Milk: 5%
• This trend supports the USDA’s projection that feed demand will grow, potentially transforming India into a key importer of U.S. agricultural commodities.

Conclusion

• As trade negotiations intensify, the U.S. sees a major opportunity in India’s rising demand for corn, soyabean, and cotton. 
• However, this potential can only be realised if tariffs are lowered and GM import restrictions are eased.
• With declining cotton output, rising feed needs, and evolving consumption patterns, India’s agricultural import policy will play a crucial role in shaping global agri-trade dynamics in the years to come.

U.S. Agricultural Exports to India FAQs

Q1. Why is the U.S. targeting India for farm exports?

Ans. India offers a growing market for U.S. corn, soyabean, and cotton amid declining demand from China.

Q2. What are the main barriers to U.S. farm exports to India?

Ans. High import duties and restrictions on genetically modified products.

Q3. How is India’s demand for corn and soyabean expected to grow?

Ans. Driven by rising animal product consumption, feed demand could surge by 2040–2050.

Q4. Why is cotton important in India-U.S. trade?

Ans. India has gone from being a net cotton exporter to importer, offering an opening for U.S. cotton exporters.

Q5. How much feed does India currently import?

Ans. In 2022, India imported only about 179,000 tonnes of feed ingredients—a fraction of its total consumption.

Source: IE

What’s in Today’s Article?

• India-China trade relations Latest News
• Bilateral Trade between India and China
• India Considers Easing Trade Restrictions on China Amid US Pressure
• China Plus One Strategy and India’s Position
• India-China Trade Relations FAQs

India-China trade relations Latest News

• With border tensions easing, India is open to improving economic ties with China. Policymakers see this as a good opportunity. 
• The US, led by President Trump, is pressuring India to reduce tariffs. Washington wants India to accept its trade terms.

Bilateral Trade between India and China

• India-China trade in FY24 reached $118.40 billion, with China regaining its position as India’s Top Trading Partner. 
  • In FY24, China had a 15% share in India’s total imports. 
    • India imported goods worth $675.42 billion from the world, including goods worth $101.74 billion from China.

Widening Trade Deficit with China

• India faces an $83 billion trade deficit due to limited export access in sectors like agriculture and pharmaceuticals. 
• India's widening trade deficit with China is primarily due to two factors:
  • Limited Export Basket – India mainly exports primary commodities to China, lacking diversification.
  • Market Access Barriers – Sectors where India has export competitiveness, such as agriculture, pharmaceuticals, and IT/ITeS, face restrictions in the Chinese market.

Low Chinese Investment

• China occupied only the 22nd position in FDI equity inflows into India, with a cumulative FDI of $2.5 billion from April 2000-September 2024.
• Growth in bilateral investment has not kept pace with the expansion in trading volumes between the two countries, and there is appetite in Beijing to step up investment flows.

India Considers Easing Trade Restrictions on China Amid US Pressure

• With India-China border tensions subsiding, policymakers are open to improving economic ties. 
• The move is seen as timely, especially as the US pressures India to reduce tariffs and accept trade terms set by Washington.

Relaxing 2020 Trade and Investment Restrictions

• Discussions are ongoing to ease restrictions imposed after the 2020 Galwan clash. 
• Proposed relaxations include lifting some tariff and non-tariff barriers, easing visa restrictions for Chinese personnel, and reopening access to some banned Chinese apps. 
• India is also considering allowing more Chinese investment to address the growing trade deficit.

Industry-Driven Push for Easing Barriers

• Indian industries, particularly SMEs, have pushed for removing trade restrictions. 
• Measures under consideration include easing BIS certification for Chinese imports and allowing visa extensions for Chinese workers in infrastructure projects.

Balancing US and China Relations

• Engaging China economically could serve as a counterbalance to US pressure on tariffs. 
• A Finance Ministry presentation has supported easing trade restrictions, signaling India's intent to maintain flexibility in its global trade strategy.

Gradual Opening for Chinese Investments

• A cautious approach to Chinese investments is being considered, particularly in joint ventures where Chinese firms hold minority stakes. 
• The Economic Survey 2023-24 suggested encouraging Chinese investments while discouraging finished goods imports to protect local industries.

China Plus One Strategy and India’s Position

• A December 2024 NITI Aayog report, the ‘Trade Watch’, had noted that India had “limited success so far” in capturing the ‘China Plus One’ strategy adopted by multinational companies looking to de-risk their supply chains.
  • The China Plus One strategy (also known as C+1 or Plus One) is a business tactic where companies diversify their operations by establishing manufacturing and sourcing outside of China.
  • This is to reduce dependence and mitigate risks associated with a single market. 
  • Factors driving this strategy include: 
    • rising labor costs in China, 
    • geopolitical tensions (like the US-China trade war), and 
    • supply chain disruptions (such as those caused by the COVID-19 pandemic). 
• However, recent developments, such as SAIC Motors divesting from MG Motors and Shein re-entering India through Reliance Retail, indicate a shift towards a balanced trade relationship.
• India faces a choice between increased Chinese investment and continued dependence on Chinese imports. 
• While trade barriers may ease, the approach will be gradual and aligned with India's broader economic interests.

India-China Trade Relations FAQs

Q1. Why is India considering easing trade restrictions on China?

Ans. India aims to balance US tariff pressure and growing trade deficit with China while improving economic ties.

Q2. What is the impact of US tariffs on India's trade policies?

Ans. US demands for tariff reductions are pushing India to reconsider its trade restrictions on China.

Q3. What sectors face major trade barriers between India and China?

Ans. Agriculture, pharmaceuticals, and IT/ITeS sectors struggle due to market access restrictions in China.

Q4. How is India responding to Chinese FDI interest?

Ans. India is cautiously considering Chinese investments in joint ventures while discouraging finished goods imports.

Q5. What is the China Plus One strategy, and how does it affect India?

Ans. The strategy diversifies supply chains outside China, but India has seen limited success in attracting investment.

Source: IE | ET