*

Will not compromise interest of farmers, dairy, fishermen

- Modi

*

Modi says ready to pay heavy price for it

*

India official says US tariff hike "lacks logic"

*

Brazil's president says will call Modi on Thursday

By Manoj Kumar and Sarita Chaganti Singh

NEW DELHI, Aug 7 (Reuters) - Indian Prime Minister

Narendra Modi said on Thursday he will not compromise the

interests of the country's farmers even if he has to pay a heavy

price, in his first comments after U.S. President Donald Trump's

salvo of a 50% tariff on Indian goods.

"For us, our farmers' welfare is supreme," Modi said at an event

in New Delhi. "India will never compromise on the wellbeing of

its farmers, dairy (sector) and fishermen. And I know personally

I will have to pay a heavy price for it," he said.

Trump announced an additional 25% tariff on Indian goods on

Wednesday, raising the total duty to 50% - among the highest

imposed on any U.S. trading partner. The new tariff, effective

August 28, is meant to penalise India for continuing to buy

Russian oil, Trump has said.

While Modi did not explicitly mention the U.S. or the

collapsed trade talks, his comments marked a clear defence of

India's position.

Trade talks between India and the United States broke down

after five rounds of negotiations over disagreement on opening

India's vast farm and dairy sectors and stopping Russian oil

purchases.

India's foreign ministry has called the U.S. decision

"extremely unfortunate" and said it would "take all necessary

steps to protect its national interests."

The U.S. has yet to impose similar tariffs for China, the

biggest buyer of Russian oil. Experts say China's dominance in

rare earth minerals - critical to high-tech industries - gives

it leverage that India currently lacks.

"The U.S. tariff hike lacks logic," Dammu Ravi, secretary of

economic relations in India's foreign ministry, told reporters.

"This is a temporary aberration, a temporary problem that

the country will face, but in course of time, we are confident

that the world will find solutions."

India is

already signalling

it may seek to rebalance its global partnerships. Modi is

preparing for his first visit to China in over seven years,

suggesting a potential diplomatic realignment amid growing

tensions with Washington.

Brazilian President Luiz Inacio Lula da Silva said on Wednesday

he would initiate a conversation among the BRICS group of

developing nations about how to tackle Trump's tariffs.

He said he planned to call Modi and China's Xi Jinping. The

BRICS group also includes Russia and South Africa.

India's Ravi added that "like-minded countries will look for

cooperation and economic engagement that will be mutually

beneficial to all sides."

MODI FACES MOUNTING DOMESTIC PRESSURE

Both supporters of Modi and the opposition Congress party

have called on him to respond firmly to the U.S. tariffs, urging

action "with self-respect and dignity."

"India's national interest is supreme. Any nation that

arbitrarily penalises India for its time-tested policy of

strategic autonomy, rooted in the ideology of non-alignment,

does not understand the steel frame India is made of," Congress

party president Mallikarjun Kharge said.

Indian industry, already struggling with global headwinds,

has expressed alarm.

Sudhir Sekhri, chairman of the Apparel Export Promotion

Council, said: "There is no way the industry can absorb such a

steep hike". He demanded fiscal support from the government.

Indian billionaire Mukesh Ambani's

Reliance Industries in its annual report said

continuing geopolitical and tariff-related uncertainties may

affect trade flows and demand-supply balance.

India's equity market, which has been weakening due to

tariff risks and muted earnings growth slipped another 0.5% on

Thursday to three-month lows. The reaction was muted as

investors bet on the tariffs being negotiated down.