With Trump's tariffs set to come into effect, govt sources say Indian economy can withstand any pressure
India has successfully withstood economic sanctions after the Pokhran nuclear tests during former Prime Minister Atal Bihari Vajpayee's tenure in the past, and since then, the economy has grown stronger and larger, sources said.
The Centre is standing firm in the wake of 25 per cent tariffs plus penalty slapped by Donald Trump, which come into effect from August 1, with sources saying India is a strong USD 4 trillion economy which can withstand any pressure. The government is prioritising keeping the welfare of its farmers and Micro Small and Medium Enterprises (MSMEs) safe.
"The government believes that the Indian economy is strong enough to withstand the tariff decision by the United States. India is a 4 trillion dollar economy, and we must safeguard the interests of our farmers and MSMEs," government sources told India TV.
India has successfully withstood economic sanctions after the Pokhran nuclear tests during former Prime Minister Atal Bihari Vajpayee's tenure in the past, and since then, the economy has grown stronger and larger, they added.
"Therefore, pressure tactics hold no meaning. Whatever is in the national interest, that is what will be done," sources said.
Trump's tariff tirade against India
On Thursday, Trump once again launched a sharp attack on India and Russia, criticising their close ties and remarking that the two nations could “take their dead economies down together”. His latest comments came shortly after he announced a 25 per cent tariff on all Indian goods, along with a “penalty” for India’s continued trade with Russia.
"I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump said. He went on to criticise India's trade practices, stating, "We have done very little business with India. Their tariffs are too high, among the highest in the world."
On Wednesday, Trump imposed a 25 per cent tariff on all imports from India effective August 1, along with an unspecified penalty targeting India’s purchases of Russian crude oil and military hardware.
The unexpected announcement came just a day after Indian officials had revealed plans for a US trade delegation to visit India from August 25 to discuss a possible trade agreement.