The resounding victory of Prime Minister Narendra Modi's National Democratic Alliance in the Bihar Assembly Elections 2025 is set to significantly influence India's approach to agricultural concessions during ongoing bilateral trade agreement negotiations with the United States, according to a CNBC report published on Saturday, November 15, 2025.
Election Results Reshape Trade Dynamics
The National Democratic Alliance achieved an overwhelming majority in the 243-member Bihar Parliamentary Assembly, securing more than 200 seats according to Election Commission of India data. The Bharatiya Janata Party led the alliance with 89 seats, while Nitish Kumar's Janata Dal(United) captured 85 constituency seats, giving the coalition a commanding three-fourths majority in the state assembly.
In contrast, the opposition Mahagathbandhan, led by Rashtriya Janata Dal, managed to win only 25 seats, with Congress securing a mere six seats in the electoral contest.
Agricultural Implications for US Trade Deal
Bihar's significant corn production capacity is expected to play a crucial role in encouraging the central government to finalize the trade agreement with the United States. American negotiators have consistently pushed for greater access to India's agricultural markets, while India has maintained its commitment to protecting the interests of its farmers in the agriculture-driven economy.
Amitendu Palit, senior research fellow and research lead at the Institute of South Asian Studies, emphasized that any agricultural concessions or tariff reductions for US imports would likely lead to increased purchases of American agro products. However, he noted these arrangements would be structured in a way that doesn't compromise the government's commitment to domestic farmers.
Trade Negotiations Progress Amid Tariff Pressures
The trade discussions between India and the United States have reached an advanced stage, with both countries completing five rounds of official negotiations. Recent reports from ANI suggest that another round of trade talks might not be necessary as both sides continue discussions on sensitive sectors and market access issues.
Commerce Minister Piyush Goyal, during his September visit to the United States, acknowledged fresh offers that include corn purchases for ethanol production, aligning with India's push toward ethanol-compliant vehicles.
The trade negotiations occur against the backdrop of significant tariff pressures, with US President Donald Trump imposing total 50% tariffs on all Indian imports. These tariffs were implemented in two phases, with the initial 25% effective from August 1, 2025, followed by an additional 25% that took effect from August 27, 2025.
Both nations aim to finalize the first round of the bilateral trade agreement by the end of 2025, with the Bihar election results potentially providing the Modi government with greater flexibility in agricultural negotiations while maintaining its pro-farmer stance.
