India Rejects US Retaliation Rumours Amid Trump Tariffs; PM Modi Pushes Swadeshi Revival for Economic Self-Reliance

Amid rising geopolitical and trade tensions, India's Ministry of External Affairs (MEA) on Sunday dismissed viral social media posts suggesting that India is considering a suspension or review of bilateral agreements with the United States. 

Terming them "disinformation", the MEA posted a formal fact-check tagging handles that had circulated the claims and categorically stated: “Disinformation being spread on X.”

Image Source: MEA/FM on X
The clarification comes just days after U.S. President Donald Trump declared a new 25% tariff on Indian goods and threatened further penalties over India’s continued purchase of Russian crude and arms. 

These remarks added another layer to what is already a simmering trade rift between New Delhi and Washington. 

POTUS Trump, who previously referred to India as a "tariff king," has now gone further, describing the Indian economy as "dead" and criticising New Delhi’s BRICS involvement.

Notably, Trump’s return to office has not slowed India’s energy imports from the U.S., which have surged 51% since January 2025. 

Yet, his overtly confrontational stance towards India’s multilateral ties and sovereign decisions--including defence procurements and regional alliances--has cast a shadow on trade diplomacy.

Against this backdrop, Prime Minister Narendra Modi delivered a powerful nationalistic message during a public address in his parliamentary constituency, Varanasi. 

Emphasizing the importance of economic self-reliance, Modi called on every Indian--irrespective of political affiliation--to prioritise locally-made goods and champion a new era of Swadeshi-driven growth.

He warned of increasing volatility in the global economy and stressed the need for unity at home. “This is not just about Modi saying it,” he said. 

“Every Indian should say this. If we want India to become the third-largest economy, every political party and every leader must rise above hesitation and awaken the spirit of Swadeshi among the people.”

Modi’s remarks mirror the spirit of post-independence economic nationalism, recalibrated for today’s multipolar world. 

With India expected to surpass both Japan and Germany in GDP rankings this decade, the message is clear: internal cohesion and indigenous capacity building will be India’s key weapons in weathering the shifting contours of global power equations.

Meanwhile, MEA’s firm rejection of fabricated posts signals a tougher stance on foreign disinformation campaigns, especially in an era where digital manipulation can dangerously distort public perception and diplomatic stances.

As India navigates a complex geopolitical climate marked by transactional diplomacy from the U.S. and renewed calls for civilisational alliances under BRICS and Global South platforms, the battle over narrative--at home and abroad--is likely to intensify.

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