US President Donald Trump’s 25% tariff, threats of higher duties, additional penalties, and jibes calling India a ‘dead economy’ don’t appear to have gone down well with India. The Narendra Modi government is calling out the hypocrisy of the Western countries like the US and European Union on oil trade with Russia, and also asserting that India is a ‘bright spot’ in the global economic scenario.After imposing a 25% tariff on India last week, Trump had targeted Russia and India, calling them ‘dead economies’. Trump’s pressure tactics on getting India to stop buying oil from Russia don’t seem to be working as Russian crude continues to flow.India is working on countering the impact of America’s 25% tariff on Indian goods exported to the US. A Rs 20,000 crore plan is being readied by the government and there is a push to encourage homegrown brands.Also Read | Amidst Donald Trump’s tariff threats, India plans big! Rs 20,000 crore project being readied for exporters; ‘Brand India’ to be promotedTrump on Monday posted on Truth Social, “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA. Thank you for your attention to this matter!!!”The foreign ministry was quick to respond with a 6-point rebuttal. From continuing to buy Russia oil, securing national interest to asserting India’s growing economic clout and hitting out at the West for its double standards – here’s a look at India’s strategy:
India’s clear message to US: Top 10 points
1) India’s oil strategy beneficial for world: The ministry of external affairs has said that while India has faced criticism from the United States and European Union regarding its Russian oil imports, its decision to source oil from Russia stemmed from the redirection of conventional supplies to Europe during the crisis. The US actually supported India’s imports at the time, viewing it as beneficial for stabilising global energy markets, the MEA statement said.2) Why criticize India? India has said that its procurement of energy resources aims to provide stable and cost-effective solutions for its citizens. These purchases are essential due to prevailing international market conditions. “However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion,” India has hit out.Also Read | How India, China may not come to Trump’s rescue to get Putin to stop Russia-Ukraine war3) Europe’s trade with Russia: India was quick to point out that the European Union’s trade relationship with Russia in 2024 included goods worth Euro 67.5 billion. The services trade was valued at Euro 17.2 billion in 2023. These figures are way more than India’s overall trade with Russia during that period. European LNG imports notably peaked at 16.5mn tonnes in 2024, more than previous high of 15.21mn tonnes in 2022.4) Europe imports several things from Russia: India also said that the trade between Europe and Russia extends beyond energy resources, including diverse sectors such as fertilisers, mining products, chemicals, iron and steel products, as well as machinery and transport equipment.5) US trade with Russia: India highlighted that the United States maintains its imports of various products from Russia, including uranium hexafluoride for nuclear facilities, palladium for electric vehicle production, along with fertilisers and chemical products.Also Read | Russia oil in focus: Tankers deliver millions of barrels of Russian crude to India; no impact of Trump, EU pressure yet6) ‘National interests’ important: The message was clear – given these circumstances, singling out India appears unwarranted and illogical. “In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” the MEA statement said.7) No stop on Russia oil procurement: India is continuing with its Russian crude oil imports despite mounting pressure from both the European Union and the Donald Trump administration. The continuous flow of Russian oil shipments was evident as several tankers discharged millions of barrels at Indian refineries over the weekend. India has also indicated that it maintains a strong relationship with Russia. Speaking on Friday, foreign ministry spokesperson Randhir Jaiswal characterised this bilateral connection as a “steady and time-tested partnership.“8) PM Modi’s call for buying local: In the midst of the US tariff stalemate, PM Modi has stressed the importance of safeguarding India’s interests during global economic uncertainty. “The world economy is going through many apprehensions — there is an atmosphere of instability,” Modi said at a rally in Uttar Pradesh on Saturday. “Now, whatever we buy, there should be only one scale: we will buy those things which have been made by the sweat of an Indian.“Modi’s emphasis on bolstering domestic production and consumption is consistent with his existing “Make in India” initiative. This strategy has gained additional relevance in light of the recent US trade measures and Modi’s remarks suggest a defiant note on US threats.Also Read | Big message! PM Modi strikes defiant ‘Make in India’ note in face of Trump’s tariff & penalty threats; India to continue buying Russia oilDuring Saturday’s gathering, Modi said: “The interests of our farmers, our small industries and the employment of our youth are of paramount importance.”9) Indian Army’s dig at US: In a dig at America, the Indian Army shared a significant historical reference on Tuesday, emphasising the US support to Pakistan during the 1971 conflict.The Army’s social media account featured a post titled “This Day That Year – Build Up of War – 05 Aug 1971 #KnowFacts”, accompanied by a vintage newspaper headline saying “US ARMS WORTH $2 BILLION SHIPPED TO PAKISTAN SINCE ’54.” 10) Dead economy? Third largest economy soon: Last week, commerce minister Piyush Goyal, while addressing the Parliament asserted that India is the fastest growing economy in the world. Goyal’s statement in the context of the 25% tariff rate on India, was also seen as a response to Trump’s ‘dead economy’ jibe. “In just over a decade, India has rapidly transformed from being one of ‘Fragile Five’ to the fastest growing major economy in the world. Today, international institutions and economists see India as the bright spot in the global economy. India is contributing to almost 16% of global growth,” Goyal said.“We have risen from the 11th largest economy to one of the top 5 economies driven by our reforms, hard work of our farmers, MSMEs, and entrepreneurs. It is also widely expected that we will become the third largest economy in a few years,” he added.Also Read | ‘More likely to happen in Lagaan, than…’: Harsh Goenka mocks Trump’s ‘Pakistan may sell oil to India’ suggestion; here’s the reality of Pak’s ‘massive’ reserves
