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Remaking Swadeshi in the era of Trump Tariffs: From Strategic Response to Economic Renaissance
Vivekananda International Foundation | English | AcademicThink | Aug. 8, 2025 | UndeterminedProtectionism
In August 2025, the United States imposed 25% tariffs on Indian exports, impacting export-oriented sectors and presenting a symbolic challenge to India's economic ambitions. Prime Minister Narendra Modi responded by urging the nation to “be vocal for local,” encouraging domestic consumption to support Indian industries while framing the tariffs as an opportunity to elevate India’s global competitiveness. The article calls for transforming this external pressure into a strategic impetus for upgrading manufacturing, building Indian global brands, and setting measurable ambitions for India’s economic future.
Historically, trade restrictions have been used against India to undermine its economic strength, exemplified by colonial-era practices that decimated local industries. The Trump-era tariffs, while differing in intent, similarly exert asymmetrical economic leverage. India’s response should be strategic reinvention rather than retaliation, leveraging domestic economic strength and measured diplomacy to protect and scale key industries.
The concept of Swadeshi, traditionally associated with self-reliance and import substitution, is reimagined here as a globally oriented strategy. Rather than inward-looking protectionism, it should inspire building Indian brands that compete internationally, particularly in sectors now facing U.S. tariff scrutiny such as textiles, electronics, pharma, and engineering goods. Drawing lessons from Vietnam’s success amid U.S.–China trade tensions, the article advocates negotiating with strength and integrating industrial upgrading alongside trade diplomacy.
To achieve sustained development and avoid economic dualism, India must adopt deliberate industrial policies, moving beyond volume-based subsidies toward outcome-focused support, and incorporating smart protection for emerging sectors. Ambitious, measurable global targets should be set across sectors such as biopharma, electric vehicles, electronics, defense, and textiles, leveraging policy, innovation, and the Indian diaspora in brand-building efforts.
Ultimately, tariffs are viewed as temporary obstacles that can catalyze a broader economic renaissance. Modi’s call to “be vocal for local” should be interpreted as a push for globally competitive Indian enterprises that shape global trade, not just participate in it. The article urges India to harness talent, infrastructure, and strategic policy to evolve Swadeshi into a modern economic identity that moves beyond patriotism to inspire global admiration and sustainable growth by 2047, marking India’s centenary as a republic.