Indian Prime Minister insists he will not trade benefits from farmers, despite heavy costs following the US's 50% import tariff.

The Indian Prime Minister has vowed not to compromise on the welfare of farmers, fishermen, and livestock producers, even if they face a hefty price tag, following Trump's 50% tariff on imports from India.

On August 8, 2568, Reuters reported that Indian Prime Minister Narendra Modi said on Thursday (August 8) that he would not compromise on the interests of Indian farmers, even if it meant paying a heavy price for his stance. This was Modi's first statement since President Donald Trump announced a 50% tariff on Indian imports.

Modi said at an event in New Delhi , “For us, the well-being of farmers is paramount… India will never compromise on the welfare of farmers, livestock farmers, and fishermen, and I know I may have to pay a heavy price for this.”

The day before, Trump announced a further 25% tariff on imports from India, bringing the total tariff to 50%, one of the highest rates ever imposed by the United States on a trading partner. Trump stated that this measure was to punish India for continuing to buy oil from Russia.

While Modi did not directly mention the US or the failed bilateral trade talks, his statement reflected India's clear stance on protecting its agriculture sector and economic sovereignty.

India-US trade talks have ended after five rounds of talks due to differences over the opening of India's agricultural and livestock markets and US demands that India halt oil imports from Russia.

The Indian Ministry of External Affairs issued a statement saying that the US decision was deeply regrettable and that India would take all necessary measures to protect its national interests.

Experts point out that the US has yet to take similar measures against China, the largest importer of Russian oil, stating that China has more leverage on the global stage due to its advantage in the rare earth market, while India lacks such leverage.

Dammu Ravi, Undersecretary for Economic Relations at India's Ministry of External Affairs, told reporters, "The US tariffs are completely illogical. It's a temporary problem the country will have to face, but in the long term, we believe the world will find a solution."

India has also begun signaling a potential rebalancing of its relations with Modi, who is set to make his first official visit to China in more than seven years, potentially reflecting a diplomatic shift amid rising tensions with the United States.

Meanwhile, Modi spoke by phone with Brazilian President Lula da Silva to discuss “regional and global issues of mutual interest to both countries.” Brazil stated that India and Brazil are among the countries most affected by the US tariffs and that cooperation is needed to address this challenge on behalf of the BRICS bloc.

Ravi added, “Countries with similar ideals will begin to look for mutually beneficial long-term economic cooperation.”

Meanwhile, Russian President Vladimir Putin held discussions with India's National Security Advisor, Ajit Doval, in Moscow. According to Russian state media RIA, both sides emphasized their commitment to the strategic partnership between the two countries.

However, within India, Modi faces increasing pressure from both supporters and opposition, who are calling for him to respond decisively to the US and uphold national dignity.

Mallikarjun Karge, leader of the Congress Party, said, “The national interest is paramount. Any country that unjustly punishes India simply because of its long-standing policy of neutrality does not understand the true, steely nature of India.”

The Indian industrial sector, which is facing pressure from the global economic slowdown, is also showing serious concerns.

Sudhir Shekhri, president of the Indian Apparel Exporters' Council, said, "There's no way the industry can absorb such high taxes," and called on the government to urgently implement fiscal relief measures.

The annual report of billionaire Mukesh Ambani's Reliance Industries states that uncertainty stemming from geopolitical situations and tariffs could impact global trade volumes and the balance of supply and demand.

Reference: www.reuters.com

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