PM Modi said his government will “bear the pressure” of US tariffs but won’t let farmers, shopkeepers and small-scale entrepreneurs suffer.
The US has raised duties on Indian imports up to 50%, giving India until Aug 27 to reduce reliance on Russian crude oil.
Modi promoted swadeshi products, while experts warned the tariffs could hit key sectors like textiles, jewelry and agriculture.
Prime Minister Narendra Modi emphasised on Monday that his administration will not compromise on the interests of farmers and small-scale companies, warning that "pressure on us may increase, but we will bear it" in the face of the US tariff deadline on Indian imports, which is in two days.
According to NDTV, the impasse in the trade pact is straining relations between Washington and New Delhi. In response to India's purchase of Russian crude oil, US President Donald Trump has increased taxes on Indian imports to an astounding 50 per cent, with an additional 25 per cent in penalties.
One of the biggest importers of crude oil worldwide, India, has until August 27 to come up with a plan to replace around one-third of its existing foreign oil supply. India saved billions of dollars on imports by purchasing Russian oil, which helped to maintain comparatively constant domestic gasoline prices.
Price increases will probably be threatened by switching suppliers, but India's exports will suffer if this is not done. Washington's action has been described as "unfair, unjustified, and unreasonable" by New Delhi.
"Today in the world, everyone is busy doing politics based on economic interests. From this land of Ahmedabad, I will tell my small entrepreneurs, my small shopkeeper brothers and sisters, my farmer brothers and sisters, my animal husbandry brothers and sisters, and I am saying this on the land of Gandhi. Be it the small entrepreneurs, farmers, or animal keepers of my country, for everyone, I promise you again and again, your interests are paramount for Modi," said PM Modi, addressing a gathering after launching multiple projects in the city.
"My government will never let any harm come to the small entrepreneurs, farmers, and animal keepers. No matter how much pressure comes, we will keep increasing our strength to withstand," he added.
NDTV reported that the Prime Minister advocated for the broad adoption of Swadeshi products.
"We should all adhere to the maxim that we should only purchase products that are made in India." "Business owners should post a large sign outside their homes stating that they only sell'swadeshi' items," he advised.
The 50 per cent US levy has the potential to disrupt labour-intensive, low-profit sectors like jewelry, textiles, fisheries, and diamonds. Many Indians are employed in agriculture, which has been a major area of contention in trade talks.
Urjit Patel, a former Reserve Bank of India Governor, said Trump's threats were India's "worst fears". Without a deal, "a needless trade war" would likely ensue and "welfare loss is certain", he said in a post on social media.
