Modi promises ‘self-reliant India’ in response to Trump’s 50% tariff

Indian Prime Minister Narendra Modi has vowed to build a “self-reliant India” and announced tax and regulatory reforms to benefit business and the middle class.

This was his first major speech since the United States imposed 50% tariffs on imports from the country.

Modi did not directly mention the dispute with the United States, but his speech last week to mark the country’s 78th anniversary of independence from Britain was full of nationalist rhetoric. He promised to protect India’s economy from dependence on imports, from microchips to fighter jet engines.

“I want to tell our citizens, our youth and everyone who understands the power of technology that by the end of this year, ‘Made in India’ semiconductor chips will be available in the market,” Modi said.

Modi also announced that India would reform the Goods and Services Tax and introduce “next-generation VAT reforms” by October, benefiting middle-class taxpayers — important voters for the ruling Bharatiya Janata Party.

The administration of US President Donald Trump imposed a 25% tariff on India from July 1, then doubled it to 50% by adding a “secondary” 25% duty on purchases of Russian oil.

The rift between India and the US, its largest trading partner, has plunged their strategic partnership into its worst crisis in decades and has stunned many Indians, rekindling mistrust of the US and the West in a country that has long been friendly with Russia.

Meanwhile, Commerce Minister Sunil Bartwal told reporters on Thursday that India remains “fully engaged in trade talks with the US.”

Tags: India, USA, duties