India – US Tariff War: Bhagwat Calls for “Swadeshi,” Bessent Confident “We Will Come Together”
Manas Dasgupta
NEW DELHI, Aug 27 As the India – US tariff war escalates to new heights with 50% tariff on Indian exports come into force, top US official on Wednesday expressed the confidence that the two countries would sort out the differences and come together, even as Mohan Bhagwat, the chief of the BJP’s ideological mentor Rashtriya Swayamsevak Sangh, advocated for “Swadeshi” to shun foreign goods to promote indigenous products.
“”If we can make lemon water at home, why bring Coca-Cola?” Mr Bhagwat said speaking at the last of the three-day Vyakhyanmala lecture series – held on the occasion of the RSS centenary celebrations. Mr Bhagwat said: “International trade will continue, but it should be free from pressure and conducted voluntarily… That is why we must promote the use of Swadeshi (indigenous goods). The country’s trade policy should be based on voluntary cooperation, not compulsion.”
But the US Treasury Secretary Scott Bessent has expressed confidence in India-US ties. He said, “I do think India’s the world’s largest democracy, the US is the world’s largest economy. I think at the end of the day we will come together.” Throwing light on the status of the trade deal between the two countries, he said that “we still don’t have a deal,” adding that India’s stance regarding the talks had been “performative,” and although it was expected that the trade deal would come through by May or June, India has taken a measured approach towards the agreement.
“The Indians came in early after Liberation Day to start negotiating on tariffs and we still don’t have a deal. I thought we would have a deal by May or June. I thought India could be our earlier deals and they tapped us along in terms of negotiations. There’s also that aspect of Russian crude purchases which they have been profiteering on,” he said.
Bessent also explained that US President Donald Trump and Prime Minister Narendra Modi have a “very good rapport at the top level.” He said, “This is a complicated relationship. President Trump and Prime Minister Modi have a very good rapport at the top level, but it’s not just about Russian oil.”
Regarding bilateral trade, Bessent reiterated Trump’s stance and said the US had a large trade deficit with India and when there was a “schism” in trade relations, the ‘deficit’ country is at an advantage and the ‘surplus’ country “should worry.” “The US is the deficit country. When there is a schism in trade relations, the deficit country’s at an advantage. It’s the surplus country that should worry. So, the Indians are selling to us. They have very high tariffs and we have a very large deficit with them,” the Treasury Secretary said.
India has asserted that it is prepared to stand firm against US pressure, with PM Modi vowing he would “never compromise” the interests of the country’s farmers. Mr Modi has also been pushing for the “vocal for local” Swadeshi campaign, urging shopkeepers to keep boards outside shops to advertise their Swadeshi wares.
On Tuesday – a day before the tariffs kicked in – Mr Modi had called upon people to be vocal for local and said Swadeshi should be their life’s mantra. Flagging off Maruti Suzuki’s first electric vehicle e-Vitara from Gujarat’s Hansalpur manufacturing facility, he said, “Anything made in India irrespective of the foreign investor or the colour of the currency… should be considered Swadeshi”.
Speaking on the same line, Mr Bhagwat said “Swadeshi” did not mean a rejection of foreign goods entirely, but rather becoming self-reliant. Urging people to buy local and village-made products, he said, “If we can make lemon water at home, why bring Coca-Cola?” “Bringing goods from outside hurts local vendors,” he said. “Whatever is made in your country, there is no need to import it from outside. Whatever is necessary for life and is not made in your country, we will import it from outside.”
