In its recent official statement, the Ministry of External Affairs (MEA) issued a clear and uncompromising response to the United States and the European Union regarding India’s trade relations with Russia following the onset of the Ukraine conflict.
The statement asserted, “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security”.
The six-point statement released by the MEA emphasised that India began importing from Russia because the traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict. At that time, the U.S. actively encouraged India’s imports to help stabilise global energy markets. The statement also pointed out the hypocrisy of those now criticising India, stating that “the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion.”
Statement by Official Spokesperson⬇️
🔗 https://t.co/O2hJTOZBby pic.twitter.com/RTQ2beJC0W— Randhir Jaiswal (@MEAIndia) August 4, 2025
The timing and context of this statement is significant. Anyone following global developments knows the economic chessboard is rapidly shifting. On July 30, U.S. President Donald Trump announced 25 percent tariffs on Indian goods starting August 1; later extending the deadline to August 7. The justification it gave was: India has continued trade with Russia despite sanctions, buying Russian oil and weapons “at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE”.
MEA’s statement reiterates India’s long-established position on the matter. As External Affairs Minister S. Jaishankar had pointedly asked in the GLOBSEC 2022 Bratislava Forum in June 2022, “Buying Russian gas [by Europe] is not funding the war? Why is it only the Indian money and oil coming to India which funds and not gas coming to Europe which funds [the war]”.
Similarly, the MEA’s statement highlights that the trade between Europe and Russia, and between the U.S. and Russia, continues. Europe’s LNG imports from Russia in 2024 reached a record 16.5 million tonnes, surpassing the last record of 15.21 mn tonnes in 2022.
The MEA’s response makes it evident that the Modi government has no intention of yielding under pressure and continues to prioritise India’s sovereign economic interests in its decision-making.
Not Impulsive, But a Strategic Course
The government’s latest statement is making headlines for its firm and unflinching tone. But a closer examination of its actions in just the last week reveals that this approach isn’t impulsive; rather, the Modi government appears to be addressing a fundamental challenge-excessive dependence on foreign powers.
On August 2, Prime Minister Narendra Modi made a compelling appeal to the people that, “The spirit of Swadeshi in everything will decide our future in the coming days”.
🚨 BIG MESSAGE
PM Modi: “With Diwali & wedding season ahead, let’s vow to BUY only Swadeshi products.” 🇮🇳
“This is true service to the nation. I urge everyone — ‘Wed in India’, don’t let India’s wealth flow abroad.” 🪔💍 pic.twitter.com/WznWQfdhGa
— Megh Updates 🚨™ (@MeghUpdates) August 2, 2025
Addressing a gathering in Varanasi, he emphasised that the upcoming festive and wedding seasons would fuel economic activity and urged citizens to be “vocal for local” and buy Indian products. He even encouraged young couples to choose India as a wedding destination instead of foreign locales.
Given the current scenario, this appeal from the Prime Minister carries more weight than usual. It shows that the government is striving for India’s self-reliance in the economic sphere.
On July 31, the Union Cabinet approved a new scheme- “Grant in Aid to National Cooperative Development Corporation (NCDC)”- to support cooperatives across India. Under this scheme, the government will provide Rs 2,000 crore to the NCDC over four years, i.e. from 2025‑26 to 2028‑29 (Rs 500 crore per year). On the strength of this grant, NCDC is expected to borrow Rs 20,000 crore from the open market during the same period.
This move is poised to benefit around 2.9 crore members of 13,288 cooperative societies, which include various sectors like dairy, fisheries, sugar, textiles, food processing, cold storage, cooperatives led by women and labour groups.
Viewed in context, this illustrates how India is quietly building a self-sustaining economic ecosystem which can help it sail through the tougher times. This is the true essence of the concept of ‘Atmanirbhar (self-reliant India).
A rather eye-opening case underlining the need of Atmanirbhar Bharat occurred on July 22, 2025, when U.S. tech-giant Microsoft suspended its services to Nayara Energies, a Russia-backed Indian oil and gas company. This was done following new EU sanctions against Russia, announced on July 18, 2025. Nayara could not access Outlook email, Microsoft Teams, and other cloud services. The issue was resolved with Microsoft lifting the suspension after Nayara sued it in the Delhi High Court. But, as pointed out by many, this could be a “wakeup call” for Indians that their dependence on foreign tech companies could be precarious and they should look for alternatives.
India Has Weathered Greater Storms
In perspective, the current tensions are minor compared to what India has overcome in the past. A prime example is the 1998 sanctions imposed by several countries, primarily the U.S., after India conducted successful nuclear tests in Pokhran. While the sanctions impacted Indian diplomacy and even hindered ISRO’s progress, they ultimately propelled India toward greater technological independence. Through careful diplomacy, not belligerence, India emerged as a respected nuclear power. The sanctions were gradually lifted, and by September 2001, U.S. President George W. Bush revoked most of the restrictions imposed during Bill Clinton’s tenure.
Similarly, the 1991 economic crisis was a defining moment. Then Prime Minister Narasimha Rao showed resolve and initiated the Liberalisation, Privatisation, and Globalisation (LPG) reforms that laid the foundation for India’s modern economy.
Compared to those historic challenges, the current situation is likely a passing phase. If the Indian government continues to act with composure and clarity, this episode could accelerate our push for industrial growth and deeper economic independence.
Is a Clash with the U.S. and EU Wise?
Of course, it is neither desirable nor strategic to be at odds with the U.S. and the EU. India and the U.S. are not natural adversaries; in fact, robust trade relations with both are in India’s best interest. No doubt this “25 percent tariffs and penalty” will hurt specific sectors. But decisions of national importance are made after evaluating broader implications, strategic, diplomatic, and economic.
During the debate on Operation Sindoor, the Opposition parties were repeatedly questioning about U.S. President Donald Trump’s claim that he halted India’s military operation against Pakistan. On July 29, in Lok Sabha, PM Modi clarified unequivocally, “No leader in the world asked India to stop its military operation (Sindoor)”. This flew directly in the face of Donald Trump’s claim.
Trump’s virulent targeting of the Indian government and economy conspicuously escalated only after this incident, going so far as to label India’s economy “dead” and announce punitive tariffs and penalty. While the U.S. has imposed tariffs on multiple countries, Trump’s rhetoric against India has been particularly harsh.
Faced with such circumstances, India had no choice but to assert its position. Despite opposition’s childish taunts urging PM Modi to name Trump in Parliament, the government exercised restraint and avoided personal attacks, demonstrating diplomatic maturity and statesmanlike conduct.
It’s worth mentioning that while India is facing a 25 percent tariff, even Pakistan has been hit with a 19 percent U.S. tariff—despite its excessively deferential stance towards Washington.
Here, it is worth mentioning that if India is facing 25 percent tariffs, even Pakistan has to face 19 percent tariffs from the US. Although Pakistan’s tariffs came down from previous 29 percent, but even after its obsequiousness towards Washington, it had to be satisfied with a 19 percent tariff. Pakistan has no other option other than celebrating it; but why should we trade our dignity for to save a six percent!
It is more honourable to endure short-term disruptions than to surrender national interest for minor gains.
Calm Resolve and Strategic Depth
In an increasingly polarised world, India’s ability to balance national interest with diplomatic poise stands out. The recent tariffs and pressures are not the first external challenges we’ve faced, nor will they be the last. What matters is how a nation responds. Assessing the unfolding situation, it’s evident that the Modi government has chosen not to respond rashly but to stand its ground with composure. It is dealing with the current situation in a very calm and calculated manner.
Its approach can be described as two-pronged: first, reinforcing the economy at the grassroots level to reduce foreign dependency; second, engaging diplomatically with clarity and firmness, without resorting to rhetoric or provocation.
This moment is not just about defending trade choices; it’s about defining our place in a shifting global order. If India holds its course with patience and pragmatism, the current friction may well become a stepping stone toward greater economic autonomy and geopolitical credibility. The road ahead demands clarity, composure, and courage; and so far, India seems to be walking it with all three.
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