Written by Lisa Murimi
In a defiant Independence Day address from the historic Red Fort, Indian Prime Minister Narendra Modi vowed to protect farmers, accelerate domestic manufacturing, and reduce dependence on foreign imports – a clear signal of policy resilience as U.S. President Donald Trump’s punitive tariffs threaten to strain the world’s fastest-growing major economy.
Without directly naming Washington, Modi underscored that “farmers, fishermen, and cattle rearers are our top priorities,” promising to act as a “wall” against any external or internal policy that undermines their livelihoods.
The remarks come days after Trump imposed an additional 25% duty on Indian goods, escalating trade tensions already inflamed by New Delhi’s continued imports of Russian oil.
The new levies raise tariffs on certain Indian exports to as high as 50%, threatening key sectors such as textiles, footwear, seafood, and gems.
From an international relations perspective, Modi’s speech reflects a dual-track strategy: domestic consolidation through economic nationalism, and strategic defiance in global trade diplomacy.
By pledging self-reliance “from fertilisers to EV batteries,” Modi is signaling that India’s industrial policy will increasingly align with geopolitical resilience rather than dependence on volatile global supply chains.
Central to his address was the announcement of a goods and services tax (GST) cut effective October, designed to stimulate consumption ahead of the Diwali festival season.
This move – alongside previous income tax reductions – seeks to offset the anticipated export losses from U.S. tariffs by boosting domestic demand.
Modi also unveiled plans for a new “Sudarshan Chakra” defence system, aimed at enhancing India’s offensive capabilities and neutralising border threats, particularly in the wake of recent clashes with Pakistan.
While the system’s technical details remain undisclosed, analysts note its symbolic alignment with India’s broader posture of self-reliance in defence procurement – a domain historically dependent on foreign suppliers.
Trade negotiations between Washington and New Delhi collapsed after five rounds, largely over U.S. demands to open India’s farm and dairy markets and end Russian oil purchases.
Modi’s firm refusal to compromise on agricultural sovereignty has bolstered his standing among rural constituencies but risks prolonging a costly trade standoff with India’s largest export market, which accounted for $87 billion in shipments in 2024.
In the broader context of global politics, Modi’s rhetoric reflects the rising trend of economic sovereignty as a pillar of national security.
His push for “Swadeshi” (Made in India) goods mirrors similar self-sufficiency drives in China, the U.S., and other emerging economies seeking to insulate themselves from geopolitical shocks.
However, the strategy carries risks. While self-reliance can strengthen domestic capacity, it may also provoke retaliatory measures from trading partners and raise production costs in the short term.
Still, Modi’s Independence Day message leaves little doubt that, in the face of external pressure, New Delhi will prioritise national autonomy over conciliatory trade concessions.
With India navigating a delicate balance between safeguarding domestic interests and maintaining strategic partnerships, Modi’s address sets the tone for a more assertive, self-determined economic and diplomatic posture in the months ahead.
