Modi urges Indians to support domestic manufacturing after Trump announces 25% tariffs on India.

Modi urges Indians to support domestic manufacturing after Trump announces 25% tariffs on India.

Indian Prime Minister Narendra Modi has intensified his call for citizens to prioritize locally made products, in response to the recent announcement of 25% tariffs on Indian exports by the United States. This move, which echoes his long-standing "Make in India" initiative, aims to shield the country's economic interests during uncertain global conditions.

Modi emphasized the importance of shielding India’s economic interests during uncertain global conditions, particularly for farmers, small industries, and the employment of youth. He stated, "The world economy is going through many apprehensions, there is an atmosphere of instability. 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" [1].

The tariffs, imposed by U.S. President Donald Trump, have had significant implications for various industries, including technology and automobile sectors. Apple CEO Tim Cook revealed that the Trump-era tariffs could cost the company up to $1.1 billion, with $800 million already spent in the June quarter alone. This financial strain could lead to increased prices or a shift in production strategies [2].

The impact of these tariffs extends beyond Apple, affecting numerous industries and countries. Pakistan, for instance, has welcomed a "better" US tariff deal, despite potential fiscal risks [3]. Meanwhile, Bangladesh garment workers face uncertainty due to high dependence on US exports, and fashion supply hubs like Vietnam and Cambodia are also hit with stiff duties [3].

Modi's renewed emphasis on domestic manufacturing and consumption comes at a critical time for India. The country has to remain vigilant about its economic interests, especially when other nations are focusing on their own interests. The "Make in India" initiative, which encourages domestic manufacturing, has gained new urgency in light of the US tariffs.

The economic uncertainty and the US tariffs have also led to a slowdown in the US smartphone market growth, with Indian-made devices surging in response [3]. This trend could be an opportunity for Indian manufacturers to expand their market share.

In conclusion, Modi's call to support domestic manufacturing is a strategic move aimed at insulating India's economy from the global instability caused by the US tariffs. While the impact of these tariffs is significant, the "Make in India" initiative provides a pathway for the country to strengthen its economic resilience.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-03/modi-renews-call-for-indians-to-buy-local-products-amid-tariffs
[2] https://www.androidheadlines.com/2025/08/trump-tariffs-could-cost-apple-1-1-billion-says-tim-cook.html
[3] https://asia.nikkei.com/location/south-asia