New Delhi

BJP MP Pratap Chandra Sarangi on Wednesday defended Prime Minister Narendra Modi's leadership stating that there was no reason for "huge market" India to be afraid of tariffs imposed by the US.

His remarks came soon after the announcement by US President Donald Trump that India will have to pay, starting August 1, a 25 per cent tariff on goods exported to the United States. He further said that India will have to pay an additional penalty due to its oil and military purchase from Russia.

Sarangi told ANI, "There is no reason to be afraid. India is a huge market, whose export has expanded exponentially, which will have a reciprocal effect... Under the guidance of PM Modi, we will face this with our tactics."

Reacting to Congress leader Jairam Ramesh's tweet, Sarangi said the opposition was trying to create unnecessary panic by questioning PM Modi's foreign policy and his relationship with the United States.

"There is a limit to Modi-Trump friendship and PM Modi will never compromise with the nation's welfare... He even denied America's dominance on major issues based on support... The opposition has no issues to raise and they like to believe Pakistani elements more than the nation," the BJP leader said.

The Government late evening said that it has taken note of the statement by the US President on bilateral trade.

The Government is studying its implications, said a statement issued by the Union Commerce and Industry ministry.

"India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective," it said.

The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs, the statement read.

Further the Government, said that it will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.

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BJP MP Praveen Khandelwal earlier said that Government will take cognisance of the announcement of 25 per cent tariffs imposed by Donald Trump. "Certainly, the Government of India will take cognisance of it. We have to wait and watch how the Government of India reacts to it. In my personal opinion, it is unfortunate." BJP leader Praveen Khandelwal had said.