Modi Takes Aim at Trump’s Threats With Budget to Shield India

Feb. 1, 2026, 9:00 PM UTC

Prime Minister Narendra Modi’s plan to protect India’s economy from Donald Trump’s tariffs is coming into sharper focus.

The latest outlines of India’s plan to live in the new world order dominated by the US president came on Sunday in an annual budget announcement that was packed with support for exporters battered by US tariffs, as well as fresh backing for strategic sectors like rare earths, semiconductors and critical minerals.

Modi’s spending plan promised new outlays on infrastructure and an 18% hike in defense expenditure — a bulwark against the challenge posed by dual rivals China and Pakistan. ...

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