The Samyukt Kisan Morcha (SKM), the umbrella body of farm outfits, has launched a nationwide campaign titled “Strong States for Strong India”. The campaign demands the restoration of the taxation power of States by amending the GST Act and the scrapping of a proposed India-U.S. bilateral trade agreement that farmers fear will devastate small and marginal agriculturalists.
This issue is at the heart of India’s Cooperative Federalism. The SKM’s demand to meet Chief Ministers and Leaders of the Opposition to pass Assembly resolutions against “anti-national trade deals” is an attempt to use state-level machinery to influence national foreign and economic policy. For UPSC aspirants, this provides a rich ground for analyzing the Article 253 of the Constitution (legislation for giving effect to international agreements) and the growing tension over Fiscal Federalism.
💡 Get AI-powered exam prep on your phone!
For SSC students, the specific demands, such as the repeal of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, and the restoration of MGNREGA, are key policy-related facts.
Table of Contents
Background or Context
The campaign is a response to two main triggers: the ongoing negotiations for an India-U.S. trade deal that might open the agriculture sector to American products like soyabean and corn , and the perceived decline in the “fiscal autonomy” of states due to the GST regime and Finance Ministry letters asking states to end bonuses for wheat and paddy.
Five Important Key Points
- The SKM launched the ‘Strong States for Strong India’ campaign to protect “federal rights” and restore state taxation powers.
- Farmers are demanding that the India-U.S. bilateral trade agreement be scrapped, fearing it will devastate small farmers.
- A key demand is the amendment of the GST Act to address the decline in the fiscal autonomy of Indian States.
- The SKM is seeking resolutions from State Assemblies urging the Union government to refrain from signing the proposed trade deal.
- Demands also include repealing the Viksit Bharat Guarantee for Rozgar Act, 2025 and restoring the MGNREGA.
Constitutional Provisions and Federalism
Under Article 246, “Agriculture” is a State List subject (Entry 14), while “Trade and Commerce with foreign countries” is a Union List subject (Entry 41). The SKM’s campaign highlights the conflict when a Union trade deal impacts a State subject. The demand to restore “taxation power” also challenges the current GST structure, which centralized most indirect taxes under the GST Council.
Economic Impacts of Trade Deals
The opposition, led by Rahul Gandhi, has echoed these concerns, claiming that permitting U.S. agricultural imports would “destroy the foundation of the country”. From an economic perspective, while trade deals can lower consumer prices, they can lead to “import surges” that crash domestic farm prices, particularly for crops like oilseeds where India is already vulnerable.+1
Governance and Social Protection
The demand to restore MGNREGA and repeal the new Viksit Bharat Guarantee for Rozgar Act suggests a dissatisfaction with the transition from a demand-driven work guarantee to a mission-mode scheme. This touches upon the “Right to Work” and the governance of rural distress.
Geopolitical Dimensions
The India-U.S. trade relationship is a cornerstone of India’s “Global Strategic Partnership.” However, the “sacrificing” of farmers for political or financial interests is a powerful political narrative that can impact bilateral negotiations, as seen during the 2020-21 farm protests.
Challenges in Implementation
Amending the GST Act to restore taxation powers would require a two-thirds majority in the GST Council and ratification by half of the State Legislatures, making it a nearly impossible hurdle in the current political climate.
Way Forward
The Union government should adopt a “Consensus-based” approach for trade deals involving agriculture by consulting State governments early in the negotiation process. A “Sovereign Compensation Fund” could be established to protect farmers from price crashes resulting from international trade agreements.
Relevance for UPSC and SSC Examinations
- UPSC Paper: GS-II (Polity – Federal Structure, Interstate Relations; GS-III – Agriculture: Issues related to direct and indirect farm subsidies and MSP).
- SSC Topics: Names of farm organizations (SKM), acronyms (GST, MGNREGA), and recent acts (Viksit Bharat Guarantee for Rozgar Act).
- Key Terms: Fiscal Autonomy, Article 253, GST Act Amendment, India-U.S. Trade Deal, Strong States Campaign.