Brief Summary
This video discusses India's response to Donald Trump's accusations regarding India's role in funding Russia's war and threats of increased tariffs. It highlights India's arguments for continuing to import Russian oil, the double standards in Western countries' dealings with Russia, and India's commitment to protecting its national interests. The video also touches upon India's strategies to counter potential economic fallout from increased tariffs, including supporting exporters and promoting domestic consumption.
- India defends its decision to import Russian oil, citing energy market dynamics and previous US support for such imports.
- India points out the double standards in the West's economic relations with Russia.
- India is preparing to protect its exporters and promote domestic consumption in response to potential US tariffs.
India's Retaliation Against Trump's Accusations
India has directly responded to Donald Trump's accusations that it is funding Russia's war and his threats of higher tariffs. This is a departure from India's usual non-confrontational diplomatic approach. The Indian government has issued a statement defending its decision to import oil from Russia, stating that it began doing so because traditional supplies were diverted to Europe and that the US had previously encouraged these imports. India considers the targeting of India to be unjustified and asserts its right to take necessary measures to protect its national interest and economic security.
India's Arguments for Buying Russian Oil
India presents three main arguments to justify its oil imports from Russia. Firstly, it argues that buying from Russia was not a unilateral decision but a response to the energy market situation after Russia's invasion of Ukraine. Europe reduced its energy purchases from Russia and increased them from West Asia, which would have created a competition with India, potentially raising prices for consumers worldwide. Secondly, India points out the double standards, highlighting that Western countries continue to engage in business with Russia through gas purchases, rare earth deals and fertilisers. Finally, India asserts its sovereign right to protect its national interest and economic security, regardless of external criticism.
The Indian Army's Rare Jibe
The Indian Army's Eastern Command has also weighed in, posting a newspaper clipping from 1971 referencing US arms shipments to Pakistan. This serves as a reminder of past US support for Pakistan, despite India having defeated them in conflicts. This action, along with the foreign ministry's statement, indicates India's growing impatience with Donald Trump's stance.
Criticism of Trump's Approach
Even allies of Donald Trump, such as former UN ambassador Nikki Haley, are questioning his approach towards India. Haley points out that Trump has not imposed tariffs on China, which also buys oil from Russia and Iran, while targeting India. She suggests that Trump risks damaging relations with a strong ally. Despite this criticism, India is continuing to import Russian crude oil and is preparing for potentially high tariffs.
India's Plan to Counter Tariffs
In response to potential tariffs from the US, the Indian government is preparing a plan to protect exporters, with a budget of 20,000 crore rupees ($2.3 billion USD). This plan aims to provide cheaper credit, easier regulation, better logistics, and a boost for brand India to support Indian exports. Additionally, India is focusing on capitalising on its large domestic market of 1.4 billion people, encouraging Indians to buy Indian goods. New Delhi is covering all bases by not shutting the door for talks, responding to unfair criticism, and preparing for permanently high tariffs through a whole-of-nation approach.
