With the US tariff deadline on Indian imports two days away, Prime Minister Narendra Modi on Monday underlined that his government will not compromise on the interests of farmers and small-scale industries, cautioning that "pressure on us may increase, but we will bear it".
New Delhi and Washington ties are under strain amid trade deal stalemate. US President Donald Trump has doubled tariffs on Indian goods to a whopping 50 per cent, including a 25 per cent additional duties, for India's purchase of Russian crude oil.
India, one of the world's largest crude oil importers, has until August 27 to find alternatives to replace around a third of its current oil supply from abroad. Buying Russian oil saved India billions of dollars on import costs, keeping domestic fuel prices relatively stable.
Switching suppliers will likely threaten price rises, but not doing so will hit India's exports.
New Delhi has termed Washington's move "unfair, unjustified and unreasonable".
"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.
The Prime Minister pushed for the widespread use of swadeshi goods.
"All of us should follow the mantra of buying only 'made in India' goods. Businessmen should keep a big board outside their establishments, saying they sell only 'swadeshi' goods," he said.
The 50 percent US levy threatens to upend low-margin, labour-intensive industries ranging from gems and jewellery to textiles and seafood. Agriculture employs vast numbers of people in India and has been a key sticking point in trade negotiations.
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.
from NDTV News- Special https://ift.tt/UYpraBO
