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 importation of Russian oil.

Addressing the MS Swaminathan Centenary International Conference in New 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 acknowledged the potential personal and diplomatic costs of this position, affirming, "I know personally, I will have to pay a heavy price for it, but I am ready for it. Today, India is ready for the country's farmers, fishermen, and dairy farmers."

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… These are celebrations of our culture but they should also be celebrations of self-reliance."

The Indian government is also diversifying its export markets, accelerating trade talks with the European Union, and exploring financial incentives such as better loan rates for exporters. This strategic shift aims to mitigate the impact of U.S. tariffs and strengthen India's economic resilience.

In summary, India's response to the U.S. tariffs underscores a steadfast commitment to protecting its agricultural sector and promoting domestic industries. Through policy reforms, a focus on self-reliance, and strategic diversification of trade partnerships, India seeks to navigate the challenges posed by the current trade tensions.