India’s Modi Vows to Protect Farmers, Cuts Tax, Pushes Self-Reliance Amid Trump Tariff Tensions

New Delhi, August 15: On India’s 78th Independence Day, Prime Minister Narendra Modi delivered a powerful message from the Red Fort, pledging to protect farmers, boost domestic manufacturing, and navigate rising trade tensions with the United States.

GST Cuts to Boost Consumption

In a move aimed at reviving economic momentum, Modi announced a reduction in Goods and Services Tax (GST) rates effective October. The tax cuts are expected to put more money in the hands of consumers, potentially boosting spending at a time when Indian exports are facing fresh challenges.

Push for Self-Reliance

Modi urged the nation to manufacture everything from fertilisers and jet engines to electric vehicle (EV) batteries domestically, reiterating his vision of an Atmanirbhar Bharat (self-reliant India). This call comes amid the collapse of trade talks with Washington, largely over disagreements on U.S. agricultural imports.

Protecting Farmers’ Interests

"India will never compromise when it comes to protecting the interests of our farmers," Modi affirmed, promising to stand like a wall against any policy that could harm them.

Farmers, fishermen, and cattle rearers remain a top priority for the government, with Modi emphasising their importance to India’s economic and cultural fabric.

New Defence Capabilities: Sudarshan Chakra

In a surprise announcement, Modi revealed the development of a new defence system named Sudarshan Chakra, aimed at neutralising enemy infiltrations. Defence analysts link this to the Russian S-400 air defence system, which proved critical during the recent four-day military conflict with Pakistan.

Trade Tensions with the U.S.

Last week, U.S. President Donald Trump imposed an additional 25% tariff on Indian goods in response to India’s continued purchase of Russian oil. The move has raised tariffs on certain exports to as high as 50%, marking some of the steepest duties faced by any U.S. trading partner.

While Modi did not directly address the tariffs in his Independence Day speech, he has previously hinted that protecting domestic interests, especially those of farmers, may come before accommodating foreign demands.

Political Stakes

Farmers remain a crucial political constituency in India. Modi’s 2021 agricultural reform attempt met with massive protests, forcing a rare policy reversal. His renewed focus on rural support signals a careful balancing act between economic reforms and political realities.

UrbanPune’s Take

For Pune’s residents — especially those in agriculture-linked businesses, manufacturing, and export sectors — these announcements could bring both opportunities and challenges. GST cuts may boost local consumption, but U.S. tariffs could impact industries tied to export markets.

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