THIRUVANANTHAPURAM: The US trade war against countries poses a serious threat to world trade and global economy, and its consequences could be especially damaging for Kerala’s export-driven sectors, Finance Minister K N Balagopal said on Tuesday. Products like marine goods, spices and tea — major export items from Kerala — would be hit hard if the US goes ahead with a proposed 25% tariff on Indian goods, he warned at a seminar on ‘Post-Covid development challenges and response: Through the lens of Kerala budgets’, organised by the Gulati Institute of Finance and Taxation (GIFT).
Balagopal said developed countries such as the US and Australia have been mounting pressure on the Union government to open up the Indian market for agricultural and dairy imports. Reports indicate Australia can sell milk in India at `30 per litre. If cheaper milk is allowed into the Kerala market, local dairy farmers will be in serious trouble, he said.
Balagopal also termed claims that Kerala is in a debt trap and that its total debt has risen to `6 trillion as “absolutely baseless”.
“Some so-called experts are spreading false information about Kerala’s debt position through social media,” he said, adding that the state’s total debt by the end of FY 2025-26 would be around `4.7 lakh crore.
“Based on a trend seen over the past three decades, Kerala’s debt has doubled every five years. Had that pattern continued, it would have already crossed `6 trillion,” he said.