In the wake of recent trade developments, the Indian government has refuted claims propagated by Pakistani sources alleging a "financial emergency" in India following the announcement of tariffs by former US President Donald Trump. These claims, which circulated primarily through social media, falsely asserted that India had declared a financial emergency due to a significant market downturn resulting from the imposed tariffs.
The Press Information Bureau (PIB), the Indian government's nodal agency for disseminating information, has officially debunked these claims, labeling them as "fake" and clarifying that no such financial emergency has been declared. The PIB's Fact Check Unit urged citizens to exercise caution and rely solely on official sources for accurate and verified information.
The rumors appear to have originated from a Pakistani propaganda account, which alleged a $60 billion market wipeout following Trump's tariff announcement. Trump's announcement included a 25% tariff plus penalty on Indian imports, effective August 1.
India has acknowledged the tariff announcement and stated that it is "studying its implications". The government has affirmed its commitment to engaging in negotiations with the United States for a fair and mutually beneficial trade agreement. Senior cabinet ministers convened to discuss the tariff announcement, perceived by some as a pressure tactic.
Despite these developments, India has asserted its economic strength and resilience. Union Minister of Commerce and Industry Piyush Goyal emphasized that India is viewed by global institutions and economists as a "bright spot" in the global economy and is poised to become the third-largest economy in the coming years. This statement was made in response to Trump's remarks about India's "dead economy".
India has emphasized that it will take all necessary measures to protect its national interests, with the government vowing to support farmers, workers, entrepreneurs, exporters, MSMEs, and all segments of industry.
The US remains a significant trading partner for India, accounting for 18% of Indian merchandise exports in 2024, with a value exceeding $80 billion.
