National Interest: Indian PM Modi Vows to Shield Indian Farmers and Small Businesses Amid US Tariff Hike on Indian Goods
Indian Prime Minister Narendra Modi on Monday delivered a strong statement defending India's small entrepreneurs, farmers and rural producers, just two days before the United States is set to impose a sweeping 50% tariff on Indian imports.
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| File Photo Source: PM NaMo |
“Today in the world, everyone is doing politics based on economic interests. From this land of Ahmedabad, I want to tell all my small entrepreneurs, small shopkeepers, farmers, and animal husbandry workers—this is the land of Gandhi--I promise you again and again: your interests are paramount for Modi,” the Prime Minister said.
“My government will never allow harm to come to small businesses, farmers, or cattle rearers. No matter how much pressure comes, we will continue to strengthen our resolve.”
The remarks came just 48 hours before the Trump administration is set to enforce a new 50% tariff on Indian goods beginning August 27, 2025.
The hike includes a penalty tariff of 25% specifically targeting India’s purchase of discounted Russian crude oil.
The United States has accused New Delhi of indirectly funding Russia’s war in Ukraine through these transactions--a claim India has consistently rejected.
India began importing Russian oil at concessional rates after Western nations imposed sanctions on Moscow following its 2022 invasion of Ukraine.
The Indian government has defended its decision on grounds of national interest, energy security, and market affordability, especially for its vast population.
External Affairs Minister S. Jaishankar, speaking at an unrelated event in New Delhi over the weekend, responded sharply to Washington’s criticism.
“It’s ironic for a pro-business American administration to accuse others of doing business,” he remarked. In a pointed rebuttal, he added: “If you don’t like Indian oil or refined products, don’t buy them. Nobody is forcing you. But Europe buys, America buys. If you have a problem, just stop buying.”
The looming tariff hike is the latest in a series of friction points between New Delhi and Washington, raising concerns over the trajectory of the India–US strategic and economic partnership.
The new duties are expected to impact a wide range of Indian exports, from textiles and machinery to processed petrochemical products. Industry bodies have warned that the move could disrupt supply chains and undermine trade recovery efforts.
In his address, Prime Minister Modi tied the moment to a larger narrative of India’s economic sovereignty and the importance of self-reliance through the ongoing Atmanirbhar Bharat (Self-Reliant India) campaign.
“Atmanirbhar Bharat is gaining strength from Gujarat, and behind this momentum lies two decades of hard work,” he said, noting the state’s contributions to manufacturing, dairy, and rural entrepreneurship.
While the US has defended the tariff action as part of its broader foreign policy strategy, New Delhi has reiterated that India’s energy and trade policies are guided solely by its national interests.
The escalation comes at a delicate time, with both countries navigating trade and strategic realignments ahead of several global summits. Despite ongoing cooperation in defence and technology, the tariff issue could prove a serious test for bilateral ties in the months ahead.