Bilateral trade reached $129 billion in 2024, with India enjoying a surplus. US agricultural imports from India rose, but concerns persist over subsidised US products undercutting Indian farmers. Agriculture employs about 42 per cent of India’s population, making it politically explosive – as seen in the 2021 farm law protests.
RBI sources maintain that India’s inflation remains moderate by historical standards and well within the RBI’s tolerance band, yet the steady upward climb since early 2026 and the sharp food contribution have returned price stability to the centre of the policy conversation.