New Delhi: Anand Mahindra, chairman of the Mahindra Group, identified two significant actions India can take to transform US President Donald Trump's recent declaration of a 25% tariff on Indian imports into a development opportunity.
In a tweet on X, Mahindra stated that India may use this opportunity to generate the most deliberate and revolutionary scenario from the current worldwide tariff disruptions, comparing it to the economic reforms in India prompted by the 1991 foreign reserves crisis.
According to him, the 'law of unintended consequences' appears to be operating covertly in the current tariff conflict launched by the US, and he cited examples from Europe and Canada, where global trade friction has unintentionally resulted in economic and structural reforms that promote growth, urging India to proactively shape its own positive outcomes from the situation.
He recommended two key actions to offset the US tariffs: significantly improve ease of doing business and unlock the power of tourism as a foreign exchange driver.
He urged for dramatically improving the ease of doing business through a genuinely effective single-window clearance system for all investment applications, as well as speeding tourism by simplifying visa processing, improving tourist facilitation, and establishing dedicated tourism corridors with guaranteed security, cleanliness, and hygiene.
Two major measures we can take immediately are: 1. Significantly Improve Ease of Doing Business India must move beyond incremental reform and build a genuinely effective single-window clearance mechanism for all investment proposals. While states have control over many investment restrictions, we may start by forming a coalition of willing states to align with a national single-window platform. If we demonstrate speed, simplicity, and predictability, we may make India an attractive location for global capital in a world seeking reliable allies, according to his post.
Unleash the Power of Tourism as a Forex Engine Tourism is one of the most underutilized sources of foreign money and jobs. We need to significantly speed visa processing, improve tourist facilitation, and create specialized trip routes around existing tourist destinations, providing guaranteed safety, sanitation, and hygiene. According to the statement, these corridors can serve as models of excellence, pushing other regions to copy and improve national standards.
Mahindra also emphasised that these efforts might make India an appealing destination for global capital while also earning foreign currency and generating jobs through tourism. He proposed additional complementary measures such as giving liquidity and support to MSMEs, speeding infrastructure investment, boosting manufacturing via increased production-linked incentive (PLI) programs, and rationalising import tariffs to improve competitiveness.
And a larger action plan based on these pillars: liquidity and support for MSMEs; infrastructure investment acceleration; a manufacturing push through the improvement and extension of PLI schemes; and rationalising import duties to reduce duty on manufacturing inputs and help improve our competitiveness. Let the unintentional repercussions we cause be the most deliberate and transformative of all, he said.
He also emphasized that while other countries prioritize their own goals, India should be driven to develop and expand its economy.
Let the unintentional consequences we produce be the most intentional and transformational of all. We cannot blame individuals for prioritizing their own countries. However, Mahindra Group Chairman concluded, we should be inspired to make our own country larger than ever before.
Earlier, calling the United States' decision to impose additional taxes on India over its oil purchases from Russia as unfair, unjust, and irrational, the Ministry of External Affairs (MEA) said on Wednesday that New Delhi will take all steps necessary to protect its national interests.
According to an official statement, "The United States has in recent days targeted India's oil imports from Russia. " We have already stated our viewpoint on these topics, including the fact that our imports are based on market considerations and with the overall goal of assuring energy security for India's 1. 4 billion citizens.
As a result, it is exceedingly regrettable that the United States has decided to slap additional tariffs on India for activities that many other countries are conducting in their own national interest, the statement said.
We reiterate that these conduct are unfair, unwarranted, and unreasonable. According to the MEA, India would take all measures required to safeguard its national interests.
Earlier, US President Donald Trump issued an Executive Order slapping a 25% penalty on imports from India in reaction to New Delhi's acquisition of Russian oil.
According to the White House order, Trump justified the rise by citing national security and foreign policy issues, as well as other applicable trade legislation, arguing that India's direct or indirect imports of Russian oil constitute an unprecedented and extraordinary threat to the United States.
Following the order, Indian commodities will face a 50% duty. While the initial fee goes into effect on August 7, the extra tariff will take effect 21 days later and will apply to all Indian imports into the United States, with the exception of products already in transit or those that fulfill particular exceptions.
According to the order, items imported into the customs area of the United States from India would be subject to a 25% ad valorem tax, consistent with relevant legislation.
This rate of duty will apply to goods entered for consumption or removed from warehouse for consumption on or after 12:01 a.m. eastern daylight time 21 days after the date of this order, with the exception of goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. eastern daylight time 21 days after the date of this order, the order states.
The Executive Order also permits adjustments depending on evolving situations, such as possible vengeance by other nations, or measures taken by Russia or India to deal with the national emergency.
