New Delhi: Prime Minister Narendra Modi indirectly addressed US President Donald Trump’s recent tariff impositions, emphasizing India’s robust economic growth despite global trade challenges. Speaking at the Red Fort during Independence Day celebrations, Modi highlighted India’s projected 7-8% economic growth for the current fiscal year, driven by reforms, performance, and transformation. He urged citizens to embrace self-reliance, promoting local production and consumption with the mantra “less price, higher quality.”
Modi’s remarks come in response to Trump’s decision to impose a 50% tariff on Indian goods, a move prompted by India’s continued purchase of Russian oil. The US president has accused India of fueling Russia’s war machine, a claim Modi countered by stressing India’s commitment to its farmers, fishermen, and livestock rearers. “India will never compromise on the interests of its farmers,” Modi declared, vowing to shield these sectors from external pressures.
The tariff escalation, which includes a 25% penalty for India’s trade with Russia, has strained India-US relations. New Delhi has condemned the tariffs as “unfair, unjustified, and unreasonable,” arguing that its energy imports are driven by market factors to ensure stability for its 1.4 billion citizens. The Indian Express reported that trade negotiations with the US have collapsed, with India resisting demands to open its agriculture and dairy markets.
Despite these tensions, Modi emphasized India’s economic resilience, citing a recent S&P Global sovereign rating upgrade, the first in 18 years. This upgrade could lower borrowing costs and boost foreign investment. Additionally, a planned salary hike for nearly five million government employees and 6.8 million pensioners in 2026 is expected to sustain economic momentum, according to PTI.
Modi called on shopkeepers to display “Made in India” signs, reinforcing his push for self-reliance. As global trade tensions rise, India’s focus on domestic consumption and local manufacturing aims to mitigate the impact of US tariffs on its export-driven sectors like textiles and gems.
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