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Indian Prime Minister Narendra Modi, in his Independence Day address, called for greater self-reliance and vowed to defend farmers amid escalating trade tensions with the United States. Without directly naming the US, Modi emphasised the need to produce goods domestically, including fertilisers, jet engines, EV batteries and semiconductor chips, which he said would be available by year-end. He also announced reduced goods and services taxes from October to stimulate consumption. Modi stressed that farmers, fishermen and cattle rearers are his top priority, promising to block any policy that could harm their livelihoods.
The speech comes in the wake of US President Donald Trump’s decision to impose an additional 25% tariff on Indian exports, citing India’s continued imports of Russian oil. The move could raise duties on certain goods to as high as 50%, affecting sectors such as textiles, footwear, gems and jewellery. India, the world’s fastest-growing major economy, exported goods worth nearly $87 billion to the US in 2024. Modi has long promoted local manufacturing, but the urgency has grown amid global trade disruptions and rising protectionism. He also urged traders to promote “Swadeshi” products, signalling a renewed drive for economic independence.
Trump’s tariff hike significantly threatens India’s access to its largest export market, with potential damage to industries that rely heavily on American consumers. The escalation follows the collapse of trade talks after five negotiation rounds, largely due to disagreements over opening India’s farm and dairy sectors and New Delhi’s decision to keep buying Russian oil. The new tariffs could hinder growth, hitting sectors already under pressure from global economic uncertainties.
In response, some of Modi’s supporters have encouraged boycotts of US companies such as McDonald’s, Coca-Cola, Amazon and Apple, aiming to channel public frustration into backing domestic brands. Despite the tensions, India’s foreign ministry expressed hope that relations with Washington could still progress on the basis of mutual respect and shared interests.
Modi’s message aligns with his long-standing “Make in India” and self-reliance agenda, but the combination of US tariffs, fragile global supply chains, and domestic economic priorities is adding urgency. The government is also intensifying efforts to secure critical minerals, with exploration underway at more than 1,200 sites. While Modi avoided direct criticism of the US during his nearly two-hour speech, his call for economic independence was seen by many as a strategic signal to both domestic and international audiences.
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