‘Govt Caught Napping, Under US Pressure To Sacrifice Indian Interests’

In a sharp critique of the government’s handling of U.S. tariffs, Congress General Secretary Sachin Pilot has stated that Prime Minister Narendra Modi should have sought a constructive resolution during his recent visit to America, rather than merely engaging in “photo ops” and gift exchanges.

Pilot emphasized that while the global community is responding to the U.S. imposition of reciprocal tariffs, the Indian government appears to be stalling and leaving its fate to chance. In an interview with PTI, the former Minister for Corporate Affairs expressed concern that the Indian government is passively accepting the situation without offering a substantial response.

“I would have expected that when the Prime Minister was in Washington (in February) meeting with the U.S. President, there would have been more than just photo opportunities and gift exchanges,” Pilot remarked. “If our relationship is as strong as both leaders claim, we wouldn’t be facing these steep tariffs. Our exports are bound to suffer, manufacturing is already struggling, and MSMEs are in for a shock. The economy is likely to experience significant stress due to potential layoffs and job losses, yet we have not seen a sufficient response or any indication of how to navigate this crisis.”

He accused the government of being caught off guard and suggested that it seems to be under U.S. pressure to compromise Indian interests. Pilot noted that many European nations have reacted strongly to the tariffs, and China is preparing to take legal action against the U.S. in the WTO. In contrast, he pointed out that while Canada and Mexico have indicated plans for reciprocal tariffs, India has yet to respond.

“The government’s silence is adding to the uncertainty,” he said, calling for a strategic approach to address the issue. “If the tariff proposal was anticipated, the Indian government should have communicated and managed it more effectively.”

Pilot highlighted that India’s economy is now more interconnected globally, and the U.S. tariffs will have significant repercussions, especially given the current record levels of unemployment since Independence. He noted the increasing national debt and the widening rich-poor divide, emphasizing that millions of jobs in trade and export-related manufacturing are at risk. Yet, he lamented the lack of innovative solutions from the government to address the fallout from these tariff wars.

While it is difficult to predict the exact impact of the U.S. tariffs, Pilot insisted that the Indian government should have been better prepared, especially considering the strategic partnership with the U.S. has not translated into tangible economic benefits.

The Trump administration has announced a 26% reciprocal tariff on India, aiming to reduce the U.S. trade deficit and boost domestic manufacturing, which is expected to adversely affect India’s exports to the U.S. This move is part of a broader strategy to impose tariffs on approximately 60 countries in response to higher duties on American products.

On the recently passed Waqf (Amendment) Bill, which has now become law, Pilot reiterated that the Congress party’s position was clear in Parliament, with the Opposition united in its objection. He questioned the rationale behind the bill, suggesting that if there were isolated incidents of non-compliance, they could have been addressed without rushing through such legislation.

“The manner in which this bill was introduced, despite widespread opposition from various political parties, stakeholders, and community leaders, suggests an intent to reignite divisive debates about Hindus and Muslims, and to polarize the narrative along religious lines,” Pilot asserted. He accused the BJP of using such tactics to divert attention from pressing issues like unemployment, food price inflation, and territorial incursions by China.

“While they have the majority to push this bill through, the public is aware that the BJP is focusing on divisive agendas that align with their political and electoral goals,” he added.

President Droupadi Murmu granted her assent to the Waqf (Amendment) Bill, 2025, on Saturday, following its passage in Parliament amid intense debates in both Houses.