In a resolute address on August 15, 2025, Indian Prime Minister Narendra Modi emphasized India's unwavering commitment to safeguarding the interests of its farmers, fishermen, and livestock holders amid escalating trade tensions with the United States. Addressing the nation from the Red Fort on Independence Day, Modi declared, "For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen, and dairy farmers."
This statement came in response to the U.S. administration's decision to impose a 25% tariff on Indian goods, citing India's continued purchase of Russian oil as a primary factor. The U.S. administration had previously criticized India for not reducing tariffs on U.S. goods sooner, though it acknowledged that India had now proposed zero tariffs. Despite this, the U.S. recently doubled tariffs on Indian imports to 50%, causing concern in New Delhi.
Modi's remarks underscored his readiness to face potential personal and diplomatic costs to protect India's agricultural sector. He stated, "I know personally, I will have to pay a heavy price for it, but I am ready for it. India is ready for it."
The Indian government's response to the U.S. tariffs has been firm. The Ministry of External Affairs criticized the new trade penalties, calling them "unjustified, unfair, and unreasonable." The ministry highlighted that India's energy imports, including those from Russia, are based on economic and strategic considerations, aimed at ensuring affordable and reliable energy access for its 1.4 billion citizens.
In the face of these challenges, Prime Minister Modi has advocated for a "self-reliant India," emphasizing the need to reduce dependence on imports, especially in critical sectors like semiconductors and defense equipment. He announced that domestically produced semiconductor chips would be available by year's end and that reforms to the Goods and Services Tax would be completed by October, aimed at benefiting the middle class.
The escalating trade tensions have also prompted India to seek alternative partnerships. Modi's recent visits to Japan and China signify a strategic move to diversify India's international alliances and reduce reliance on the U.S. market. These diplomatic engagements aim to bolster economic and security cooperation, ensuring that India remains resilient amid global trade disputes.
As the situation develops, India's steadfast commitment to its farmers and economic sovereignty remains clear. The government's proactive measures and diplomatic initiatives reflect a determined effort to navigate the complexities of international trade while prioritizing national interests.
