Amid US tariff threat, RSS-affiliated SJM urges boycott of American products
New Delhi: The Swadeshi Jagran Manch (SJM), an economic organisation affiliated with the Rashtriya Swayamsevak Sangh (RSS), has called for a boycott of American products and digital platforms in response to a US Senate legislation that would permit the US President to impose tariffs of up to 100% on countries making significant purchases of Russian oil.
The proposed legislation is an attempt to dictate India's energy choices and infringe on its sovereignty, the SJM said. India has been among the top buyers of Russian crude oil since 2022, taking advantage of discounted prices. India's imports of Russian oil have risen sharply since 2022, becoming a significant part of its total crude purchases. Despite repeated calls from the US and its allies to reduce these imports, New Delhi has maintained that energy security is a national priority. India argues that its purchases do not violate any international sanctions, as the US sanctions are unilateral in nature.
In its statement, the SJM urged citizens to support domestic industry and avoid American brands, including beverages, clothing, and social media platforms. The organisation said that economic self-reliance is essential for India to maintain its independence in foreign affairs. It also encouraged the use of locally manufactured goods.
The SJM also asked the government to reconsider two recent policy decisions that it believes favour US companies. The first is the relaxation of norms for FDI-funded e-commerce platforms regarding export inventory. The second is the introduction of merchant discount rates (MDR) on certain UPI transactions. UPI is a real-time payment system developed by the National Payments Corporation of India, while MDR is the fee that merchants pay to banks for processing digital payments. The SJM argued that these moves could undermine Indian small businesses and the domestic digital payments ecosystem. It is particularly concerned that greater flexibility for e-commerce giants might lead to predatory pricing, while MDR could add costs to small merchants.
The organisation has a long history of promoting swadeshi, or self-reliance, dating back to India's independence movement. In the post-liberalisation era, it has often called for curbs on foreign investment and imports, particularly from the US. However, previous boycotts have had little impact on consumer behaviour, as American brands have a strong foothold in the Indian market.
Products such as Coca-Cola, Pepsi, and Apple, as well as platforms like Google, Facebook, and Amazon, are widely used by Indian consumers. A full-scale boycott appears unlikely, but the SJM's appeal could influence consumer sentiment among its support base. The popularity of American goods in India has often muted the impact of previous boycott calls.
The India-US trade relationship has seen its share of disputes. In 2018, the US imposed tariffs on Indian steel and aluminium, prompting India to retaliate with duties on American goods. The two countries have since worked to resolve these issues through negotiation, but the latest tariff threat adds a new layer of complexity.
The Indian government has not yet responded to the SJM's demands. The development adds to the list of trade irritants between India and the US. The final outcome will depend on how the US legislative process unfolds. The two countries have been working to improve their trade ties.
