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Modi urges self-reliance from fertilisers to EV batteries

production

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Announces lower GST rates from October to boost

consumption

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Stress on local manufacturing intensifies amid trade

tensions

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Modi asks shops, traders to push local products

By YP Rajesh and Shilpa Jamkhandikar

NEW DELHI, Aug 15 (Reuters) - Indian Prime Minister

Narendra Modi urged the country on Friday to move towards more

self-reliance, manufacture everything from fertilisers to jet

engines and EV batteries, and vowed to protect farmers in the

face of a trade conflict with Washington.

With the punishing tariffs imposed on Indian exports by U.S.

President Donald Trump expected to hurt growth in the world's

fastest growing major economy, Modi announced lower goods and

services taxes from October - a move that could help boost

consumption.

Modi was addressing the nation on the occasion of its

Independence Day at a time New Delhi has been struggling with

Trump's tariffs and the collapse of trade talks, largely due to

differences over imports of American farm and dairy products.

"Farmers, fishermen, cattle rearers are our top priorities,"

Modi said in his customary annual address from the ramparts of

the Red Fort in New Delhi.

"Modi will stand like a wall against any policy that

threatens their interests. India will never compromise when it

comes to protecting the interests of our farmers," he said.

Modi did not mention the tariffs or the U.S. in his speech

that lasted nearly two hours.

Last week, Trump imposed an additional 25% tariff on Indian

goods, citing New Delhi's continued imports of Russian oil in a

move that sharply escalated tensions between the two nations.

The new import tax will raise duties on some Indian exports

to as high as 50% - among the highest levied on any U.S. trading

partner.

Modi has never spoken about the tariffs directly, only alluding

to them in a speech last week, where he swore to protect the

interests of farmers, even if it came at a personal price.

Although local manufacturing and self-reliance have been Modi's

key focus areas for years now, the push is seen to have gained

urgency amid ongoing global trade tensions and supply chain

disruptions.

"The need of the hour is to take a resolve for building a

strong India ... I want our traders, shopkeepers to display

boards for 'Swadeshi' products," Modi said, using the Hindi word

for made in India goods.

He said made in India semiconductor chips would hit the

market by the end of this year and that India was pushing for

self-reliance in producing critical minerals with exploration

underway at more than 1,200 locations.

Trump's tariffs threaten to disrupt India's access to its

largest export market, where shipments totalled nearly $87

billion in 2024, hitting sectors like textiles, footwear, gems

and jewelry.

In retaliation, some supporters of Modi have sought to stoke

anti-American sentiment and called for a boycott of U.S.

companies such as McDonald's, Coca-Cola, Amazon ( AMZN ) and Apple ( AAPL ).

Trade talks between New Delhi and Washington collapsed after

five rounds of negotiations over disagreement on opening India's

vast farm and dairy sectors and stopping Russian oil purchases.

On Thursday, the Indian foreign ministry said that it hoped

relations with the United States would move forward based on

mutual respect and shared interests, seeking to temper worries

that ties were headed downhill.