In the face of escalating trade tensions with the United States, Indian Prime Minister Narendra Modi has delivered a resolute message emphasizing the nation's commitment to self-reliance and the protection of its farmers, fishermen, and dairy producers. This stance comes in response to the U.S. administration's decision to impose a 50% tariff on Indian goods, citing concerns over India's continued imports of Russian oil.

Addressing the MS Swaminathan Centenary International Conference in Delhi, Modi stated, "For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen, and dairy farmers." He further expressed his readiness to bear personal costs to uphold these interests, saying, "I know personally, I will have to pay a heavy price for it, but I am ready for it."

In response to the U.S. tariffs, India has announced significant tax cuts on hundreds of consumer goods, including air conditioners and small cars, aiming to boost domestic consumption and counteract the economic impact of the U.S. measures. Finance Minister Nirmala Sitharaman detailed reforms that simplify the Goods and Services Tax structure from four tiers to two—5% and 18%. Most goods will benefit from these lower rates, though luxury items like high-end cars and tobacco will face a special rate of 40%. The new tax rules are set to take effect on September 22, coinciding with major Hindu festivals.

Simultaneously, Prime Minister Modi has called for a renewed focus on "swadeshi" products, urging citizens to prioritize purchasing goods made in India. He emphasized that this approach aligns with the nation's cultural celebrations and promotes self-reliance. Modi stated, "This is the season of festivals… all these festivals are coming. These are celebrations of our culture but they should also be celebrations of self-reliance."

The Indian government's response also includes diversifying its export markets to reduce dependence on the U.S. Efforts are underway to strengthen trade relations with Europe, Latin America, Africa, and Southeast Asia. Additionally, India is accelerating trade talks with the European Union and exploring financial incentives, such as better loan rates for exporters, to support its industries.

In summary, India's response to the U.S. tariffs reflects a strategic shift towards self-reliance and a steadfast commitment to protecting the interests of its agricultural and industrial sectors. Through policy reforms, promotion of indigenous products, and diversification of export markets, India aims to navigate the challenges posed by the U.S. trade measures while fostering sustainable economic growth.