Indian industry figures and politically connected groups are urging citizens to turn to locally produced goods and services.
American multinationals, including McDonald’s (MCD), Coca-Cola (KO), Amazon (AMZN), and Apple (AAPL), are facing boycott calls in India as tensions escalate between Washington and New Delhi over U.S. tariff rates.
Over the last week, U.S. President Donald Trump has toned up his criticism of India, blaming the South Asian country for its high trade barriers and indirectly funding the war in Ukraine by buying high quantities of Russian oil. The U.S. has imposed a 50% tariff on India, one of the highest among its neighbors, effective from Aug. 27.
Key Indian business figures joined citizens in calls for the boycott brewing on social media, Reuters reported. Manish Chowdhary, co-founder of local skincare brand Wow Skin Science, and Rahm Shastry, CEO of driver-for-hire service DriveU, posted messages promoting local-made products and services, reviving a key message of Prime Minister Narendra Modi’s administration.
Meanwhile, the Swadeshi Jagran Manch, a group linked to Modi’s Bharatiya Janata Party, held public rallies across India on Sunday, urging people to boycott American brands. The group is reportedly also sending out over WhatsApp a list of American brands it wants Indians to boycott.
India, the world’s most populous nation, is vital for American multinationals—not only for its vast consumer market but also for their local workforce, which helps companies keep costs in check.
India is Meta’s (META) largest user market for WhatsApp, and Domino’s (DPZ) operates more outlets in the country than any other brand. Soft drink giants like Pepsi (PEP) and Coca-Cola (KO) dominate retail shelves, while new Apple store openings or Starbucks (SBUX) discount offers still draw long queues.
The Reuters report stated that there was no immediate indication of a sales impact on these companies, although boycott calls were growing on social media.
If the boycott materializes into a significant impact, Indian firms will also be at a loss as well. Information technology (IT) services giants Tata Consultancy Services (TCS.NSE) and Infosys (INFY.NSE) derive the bulk of their revenue from North American clients, chiefly the U.S. multinational companies.
The development, incidentally, comes as Tesla (TSLA) has opened its first two showrooms, in Mumbai and Delhi, in recent weeks.
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