Mahindra group chairman Anand Mahindra shared his two-step design to help India counter US President Donald Trump’s decision of imposing an additional 25% tariff, pushing the final duty on Indian goods to a whopping 50%.
In a post on X, Mahindra also suggested that India could take a cue from Canada and the European Union who seem to be using Trump’s tariff war to their advantage by boosting domestic spending.
“The ‘law of unintended consequences’ seems to be operating stealthily in the prevailing tariff war unleashed by the U.S,” Mahindra said.
India could take a cue from the European Union and Canada
He said that the EU may appear to have accepted the evolving global tariff regime, responding with its own strategic adjustments. Yet the friction has nudged Europe to rethink its security dependence, leading to higher defence spending in France and Germany.
In that process, Germany has moderated its fiscal orthodoxy, which may well catalyse a resurgence in Europe’s major economies. The world could gain a new engine for growth.
In Canada, long hampered by notorious internal trade barriers between its provinces, steps are now being taken to dismantle them, bringing the country closer to a common market and enhancing economic resilience, Mahindra added.
Both these ‘unintended consequences’ could become long-term positives for global growth, he further said. He added a rhetorical question that if India too seize this moment to shape a virtuous consequence for itself? “Just as the 1991 forex reserves crisis triggered liberalisation, can today’s global ‘Manthan’ over tariffs yield some ‘Amrit’ for us?” Mahindra said.
Anand Mahindra’s suggestion to combat global economic uncertainty
He suggested two steps that India could take to counter the global economic uncertainty of today.
“Radically Improve Ease of Doing Business —India must go beyond incremental reform and create a genuinely effective single-window clearance system for all investment proposals,” Mahindra added.
He agreed that while states control many investment regulations, the centre can begin with a coalition of willing states aligning with a national single-window platform.
The second step he mentioned was about unleashing the power of tourism as a forex engine. “Tourism is one of the most underexploited sources of foreign exchange and employment. We need to dramatically accelerate visa processing, improve tourist facilitation, and build dedicated tourism corridors around existing hotspots, offering assured security, sanitation, and hygiene,” Mahindra added.
He also called for a broader action agenda to build on these pillars such as liquidity and support for MSMEs, infrastructure investment acceleration, a manufacturing push, via enhancement and expansion of the scope of PLI schemes, rationalisation of import duties so that duty on manufacturing inputs are lowered and assistance in improving our competitiveness.
“Let the unintended consequences we create be the most intentional and…
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