Big message! PM Modi strikes defiant ‘Make in India' note in face of Trump's tariff & penalty threats; India to continue buying Russia oil
In the face of US President Donald Trump's 25% tariffs and warnings of additional penalty for trade with Russia, India is also hardening its stance. Prime Minister Narendra Modi has taken a defiant stance against Trump's tariff warnings, whilst encouraging people to buy locally made products.
The Modi government has also not stopped purchasing Russia's crude oil.
The United States has shifted its stance towards India, with President Trump now targeting the nation as part of his strategy to pressure Vladimir Putin regarding the Ukraine conflict. Trump's recent criticism specifically addressed India's participation in BRICS and its continued Russian relations, stating "they can take their dead economies down together."
PM Modi's Push For 'Swadeshi' Goods
On Saturday, PM Modi emphasised the necessity of protecting India's interests during global uncertainty. Modi's comments at a public gathering come at a time when the Donald Trump administration has imposed a 25% duty on Indian exports. The White House has also indicated potential additional measures if India continues its Russian oil imports.
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"The world economy is going through many apprehensions — there is an atmosphere of instability," Modi said at a rally in Uttar Pradesh on Saturday.
"Now, whatever we buy, there should be only one scale: we will buy those things which have been made by the sweat of an Indian."
Modi's current focus on strengthening domestic production and consumption aligns with his established "
Make in India
" programme. This approach has become increasingly significant following the implementation of US tariffs.
At Saturday's rally, Modi said: "The interests of our farmers, our small industries and the employment of our youth are of paramount importance."
India Continues to Buy Russia's Crude Oil
According to sources who spoke to Bloomberg, the government has not directed refineries to cease Russian oil purchases, nor has any decision been finalized regarding the suspension of these imports. Both government-operated and private refineries retain the freedom to select their preferred suppliers, with multiple sources confirming that crude procurement remains a business decision.
The New York Times had reported on Saturday that India would continue purchasing Russian crude despite potential sanctions from Trump, according to two senior Indian officials.
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European Union and US authorities have criticised Indian refiners for supporting Moscow's war efforts in Ukraine through oil purchases. India has emerged as a big buyer of Russian seaborne crude exports, increasing its imports from negligible levels to approximately one-third of its total oil imports, taking advantage of reduced prices.
Whilst China remains Russia's main economic and diplomatic ally, Trump's influence over the world's second-largest economy is restricted because Beijing controls rare-earth magnets essential for US high-tech manufacturing.
Recent months have seen US-China discussions aimed at improving relations after both nations increased tariffs on each other's products beyond 100% earlier this year.
India maintains its strong relationship with Russia, which has been a major arms supplier since the Cold War era. The relationship represents a "steady and time-tested partnership," according to Foreign Ministry spokesperson Randhir Jaiswal's statement on Friday.
Jaiswal emphasised that India's bilateral relationships with different nations are independent and should be evaluated on their own merit, not through another country's perspective. Regarding US relations, he expressed confidence in continued positive progress.
A senior official in New Delhi confirmed on Friday that American trade negotiators are expected to visit India in late August for bilateral deal discussions.
The official said that India would maintain its position on restricting US access to its dairy and agriculture sectors, considering political and religious factors.
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US Wants India To 'Get Real'
America's new diplomatic position represents a significant departure from previous policy, which had traditionally accepted India's longstanding Russian relationship whilst cultivating India as a strategic partner to balance China's influence in Asia.
Trump's current approach suggests he is prepared to sacrifice this established diplomatic framework in his pursuit to influence Putin and seek resolution to the Ukrainian conflict, the Bloomberg report said.
Stephen Miller, serving as Trump's deputy chief of staff, alleged on Sunday that India was imposing huge tariffs on US products and manipulating the American immigration framework, whilst purchasing Russian oil quantities similar to China's imports.
"President Trump, he wants a tremendous relationship and has had always a tremendous relationship with India and the prime minister," Miller said. "But we need to get real about dealing with the financing of this war."
"So, President Trump, all options are on the table to deal diplomatically, financially and otherwise with the ongoing war in Ukraine, so we can achieve peace," Miller added.
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