Prime Minister Narendra Modi addressed U.S. President Donald Trump’s recent imposition of a 25% tariff on Indian exports, an additional unspecified penalty for India’s trade ties with Russia, and his provocative “dead economies” remark during a rally in Varanasi today. While avoiding direct mention of Trump’s comments, Modi emphasized India’s economic resilience and urged citizens to embrace the “Swadeshi” (made in India) movement to counter global trade challenges.
Speaking to a large crowd, Modi highlighted India’s ambition to become the world’s third-largest economy, underscoring the importance of self-reliance in the face of international economic pressures. “Our farmers, entrepreneurs, and small businesses are the backbone of our nation. By choosing Swadeshi products, we strengthen our economy and protect our interests,” he said. The Prime Minister framed the global economic landscape as uncertain, indirectly addressing Trump’s tariffs and penalty, which took effect on August 1, 2025, and are impacting key Indian export sectors like pharmaceuticals, textiles, gems, and automobiles.
Trump’s “dead economies” jibe, part of his broader critique of nations trading with Russia, sparked significant backlash in India. Modi’s response focused on rallying national pride, asserting that India’s economic growth remains robust despite external challenges. He reiterated the government’s commitment to safeguarding domestic industries and fostering innovation to mitigate the tariff’s estimated 20-40 basis point reduction in GDP growth, as projected by economists.
While Modi’s speech avoided direct confrontation, it signaled a strategic pivot toward economic self-sufficiency. The government is reportedly engaging with exporters and industry stakeholders to assess the tariffs’ impact, with ongoing trade negotiations with the U.S. scheduled for late August. Modi’s call for unity and local consumption reflects a broader strategy to cushion India’s domestic demand-driven economy against global trade disruptions.
For more details on India’s response and its implications, read India Responds to Trump’s 25% Tariff, Penalty, and ‘Dead Economies’ Jibe: Implications for NRIs. For background on the initial announcement, see Trump’s 25% Tariff and Penalty on India: Trade Tensions Escalate, NRIs Brace for Impact.
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