Amid escalating trade tensions with the United States, Indian Prime Minister Narendra Modi has called on citizens to prioritize locally made products and reduce their dependence on foreign goods. This renewed emphasis on self-reliance, or "Swadeshi," comes after the US imposed a 50% tariff on imported Indian goods, exacerbating already strained bilateral relations.
In a public address on Sunday, September 21, 2025, Modi urged Indians to actively replace foreign-made items with domestic alternatives. He pointed out that many everyday products are of foreign origin without consumers being fully aware. Modi's call is seen as a pushback against the US trade policies and a broader strategy to stimulate India's domestic economy.
The Prime Minister's appeal has resonated with many of his supporters, who have initiated campaigns to boycott popular American brands such as McDonald's, Pepsi, and Apple. These brands have a significant presence in the Indian market, with their reach extending into smaller towns through online platforms like Amazon. Modi has also encouraged shopkeepers to promote and sell made-in-India products, arguing that this will boost economic growth and create employment opportunities.
India's large population of 1.4 billion represents a substantial consumer market for American companies. The increasing reach of US brands in smaller towns has made India a key market for these companies. The call to prioritize local goods could significantly impact these businesses if it gains widespread traction.
The Indian government has been actively promoting local goods in recent weeks, aligning with the "Swadeshi" movement. This initiative aims to boost domestic manufacturing and reduce reliance on imports. The government has also simplified norms for exporters to encourage foreign trade. The Foreign Trade Policy 2023 focuses on process re-engineering and automation to improve ease of doing business for exporters.
Amidst the rising trade tensions, India's Commerce Minister Piyush Goyal is expected to visit Washington for trade talks. The visit aims to address the trade disputes and find a mutually agreeable path forward. These discussions are crucial for balancing the strategic partnership between the two nations with their economic disagreements.
Despite the current challenges, there is optimism that the relationship between India and the US will rebound. Some analysts suggest that the tariff-driven turbulence is only temporary and that the deep-rooted cooperation between the two countries will ensure ties are restored. The US also recognizes the importance of these talks, calling Piyush Goyal's visit an important step forward.
India has been actively updating its import policies to align with global standards. These updates focus on compliance, quality control, and facilitating ease of business for importers. The new import policy includes the expansion of the Open General License (OGL) list, new trade agreements with Gulf nations, Africa, and Southeast Asia, and preferential tariff reductions. All importers are required to register under the Directorate General of Foreign Trade (DGFT).
