Indian Prime Minister Narendra Modi urged the country on Friday to move towards more self-reliance, manufacture everything from fertilisers to jet engines and EV batteries, and vowed to protect farmers in the face of a trade conflict with Washington.
With the punishing tariffs imposed on Indian exports by US President Donald Trump expected to hurt growth in the world's fastest growing major economy, Modi announced lower goods and services taxes from October, a move that could help boost consumption.
Modi was addressing the nation on the occasion of its Independence Day at a time 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 and 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 US in his speech that lasted nearly two hours. 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 US 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. Though local manufacturing and self-reliance have been Modi's key focus areas for years, the push is seen to have gained urgency amid 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 and shopkeepers to display boards for Swadeshi products,” Modi said, using the Hindi word for goods made in India.
He said made in India semiconductor chips would hit the market by the end of the year and India was pushing for self-reliance in producing critical minerals with exploration under way at more than 1,200 locations.
Trump's tariffs threaten to disrupt India's access to its largest export market, where shipments totalled nearly $87bn (R1.5-trillion) in 2024, hitting sectors including textiles, footwear, gems and jewellery. In retaliation, some Modi supporters have sought to stoke anti-American sentiment and called for a boycott of US 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 it hoped relations with the US would move forward based on mutual respect and shared interests, seeking to temper worries that ties were headed downhill.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.