India Unfazed by Trump's Tariff Threats, PM Modi Says Country Ready to Pay Price

Indian PM Narendra Modi has pledged to protect the interests of farmers, fishermen, and pastoralists despite threats of steep tariffs from US President Donald Trump. Modi declared "India is ready for it" and said he would "never compromise" on their interests. Trade talks between the two nations have been derailed by India's reluctance to open up its agriculture and dairy markets, with officials fearing disruption to rural livelihoods. BRICS nations are considering a coordinated response to the tariffs.

Indian Prime Minister Narendra Modi has firmly pledged to protect the interests of farmers, fishermen, and pastoralists despite the looming threat of steep tariffs from US President Donald Trump. Modi declared that India is ready to face the consequences and will "never compromise" on their interests [1]. This stance comes amidst a backdrop of derailed trade talks between India and the US, with India reluctant to open up its agriculture and dairy markets due to fears of disrupting rural livelihoods.

The US has recently imposed a 50% tariff on Indian goods, a move that has sparked concerns about the potential impact on India's economic growth. Analysts at Morgan Stanley have warned that prolonged tariffs could cut India's growth by up to 0.8% [2]. Moody's has also cautioned that the tariffs could significantly affect India's manufacturing goals and potentially slow GDP growth by 0.3% [3]. The Indian equity markets have reacted negatively to the tariffs, with indices such as the Nifty50 and BSE Sensex opening in the red due to concerns over the potential impact on exports and the overall economy [4].

The BRICS nations, comprising Brazil, Russia, India, China, and South Africa, are considering a coordinated response to the tariffs. This coordinated approach aims to mitigate the impact of US trade policies and strengthen the economic ties among these nations [5]. The upcoming sixth round of trade negotiations between India and the US, scheduled for August 25, will be crucial to observe as it may provide insights into the future trajectory of India-US trade relations [2].

As the US continues to implement tariffs and other trade measures, the Indian government's resolve to protect its farmers and rural communities remains steadfast. This stance underscores the importance of maintaining the integrity of India's agricultural sector and the livelihoods of those who depend on it. The ongoing developments in the India-US trade dynamic will continue to be closely watched by investors and financial professionals.

References:
[1] https://timesofindia.indiatimes.com/business/india-business/donald-trump-tariffs-india-news-live-updates-russia-oil-india-us-trade-deal-tariff-impact-pm-modi-china/liveblog/123178433.cms
[2] https://timesofindia.indiatimes.com/business/india-business/donald-trump-tariffs-india-news-live-updates-russia-oil-india-us-trade-deal-tariff-impact-pm-modi-china/liveblog/123178433.cms
[3] https://timesofindia.indiatimes.com/business/india-business/donald-trump-tariffs-india-news-live-updates-russia-oil-india-us-trade-deal-tariff-impact-pm-modi-china/liveblog/123178433.cms
[4] https://timesofindia.indiatimes.com/business/india-business/donald-trump-tariffs-india-news-live-updates-russia-oil-india-us-trade-deal-tariff-impact-pm-modi-china/liveblog/123178433.cms
[5] https://timesofindia.indiatimes.com/business/india-business/donald-trump-tariffs-india-news-live-updates-russia-oil-india-us-trade-deal-tariff-impact-pm-modi-china/liveblog/123178433.cms