Indian opposition parties accused Prime Minister Narendra Modi's government of a diplomatic failure after US President Donald Trump announced a 25% tariff on Indian imports, as well as possible sanctions on deals with Russia and India's participation in the BRICS group, BTA reports.
According to the opposition, these actions undermine months of trade negotiations and threaten the strategic relationship between Washington and New Delhi, key to the balance of power in Asia. The parliamentary group of the Indian National Congress has demanded an urgent debate, defining the situation as an “economic and diplomatic failure“.
The government said it was analyzing the consequences and remained committed to achieving a “fair trade deal”. Commerce Minister Piyush Goyal is expected to present a formal position before the lower house later today.
“I don't care what they do with Russia. They can destroy their economies together,“ Trump wrote on the social network Truth Social. Russia remains a major supplier of oil to India, with a 35% share in the first half of 2025.
Economists have warned that the new tariffs could cut India's economic growth by up to 40 basis points by March 2026. The Nifty 50 and BSE Sensex indices fell 0.9% in early trade before stabilizing. The Indian rupee weakened to a five-month low.
Compared to other countries, India faces higher tariffs of 25%, compared to 20% for Vietnam, 19% for Indonesia and 15% for Japan and the European Union. Further tensions were also created by Trump's announced trade deal with Pakistan, India's main regional rival.
Opposition leader Rahul Gandhi said: "The government has destroyed our economic, defense and foreign policies." India rejected Trump's claim that he was instrumental in brokering a truce with Pakistan after the conflict in May.
"India got a tough deal," said economist Priyanka Kishor of the analysis company Asia Decoded. She said that while further negotiations could reduce tariffs, India is not expected to do better than other Asian economies.
Kishor noted that this could undermine India's position as a leading alternative to China in the "China Plus One" strategy aimed at diversifying manufacturing and supply chains.
On Wednesday, Trump announced a trade deal with Pakistan that will see Islamabad benefit from lower export duties. Specific rates under the deal have not yet been announced.