Prime Minister Narendra Modi on Friday called on the nation to pursue greater self-reliance, produce everything from fertilisers to jet engines and EV batteries, and promised to safeguard farmers amid trade tensions with Washington.
With the “punishing” tariffs imposed on Indian exports by U.S. President Donald Trump expected to hurt growth in the world’s fastest-growing major economy, Modi announced lower goods and services taxes (GST) from October – a move that could help boost consumption.
Modi was addressing the nation on the occasion of its Independence Day at a time when New Delhi has been struggling with Trump’s tariffs and the collapse of trade talks, largely due to differences over imports of American farm and dairy products.
“Farmers, fishermen, cattle rearers are our top priorities,” Modi said in his customary annual address from the ramparts of the Red Fort in New Delhi.
“Modi will stand like a wall against any policy that threatens their interests. India will never compromise when it comes to protecting the interests of our farmers,” he said.
Modi did not mention the tariffs or the U.S. in his speech that lasted nearly two hours.
Trump’s Tariff Salvo
Last week, Trump imposed an additional 25% tariff on Indian goods, citing New Delhi’s continued imports of Russian oil in a move that sharply escalated tensions between the two nations.
The new import tax will raise duties on some Indian exports to as high as 50% – among the highest levied on any U.S. trading partner.
Modi has never spoken about the tariffs directly, only alluding to them in a speech last week, where he swore to protect the interests of farmers, even if it came at a personal price.
Although local manufacturing and self-reliance have been Modi’s key focus areas for years now, the push is seen to have gained urgency amid ongoing global trade tensions and supply chain disruptions.
“The need of the hour is to take a resolve for building a strong India … I want our traders, shopkeepers to display boards for ‘Swadeshi’ products,” Modi said, using the Hindi word for made in India goods.
He said made-in-India semiconductor chips would hit the market by the end of this year and that India was pushing for self-reliance in producing critical minerals, with exploration underway at more than 1,200 locations.
Trump’s tariffs threaten to disrupt India’s access to its largest export market, where shipments totalled nearly $87 billion in 2024, hitting sectors like textiles, footwear, gems and jewellery.
In retaliation, some supporters of Modi have sought to stoke anti-American sentiment and called for a boycott of U.S. companies such as McDonald’s, Coca-Cola, Amazon and Apple.
Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India’s vast farm and dairy sectors and stopping Russian oil purchases.
On Thursday, the Indian Foreign Ministry said that it hoped relations with the United States would move forward based on mutual respect and shared interests, seeking to temper concerns that ties were headed downhill.
(With inputs from Reuters)
