Donald Trump’s tariffs have taken the world by the storm, with India, China and Vietnam being some of the hardest-hit Asian countries. While economists have flagged repercussions on larger economies like China, Mahindra Group chairman Anand Mahindra has an interesting take on the India opportunity.
Taking to X on Friday night, Anand Mahindra reflected on how the Trump tariffs have raised speculations revolving around China alone.
“Most of the speculation today in global fora on the global impact of the U.S tariffs revolves around China: What might be its reaction (China today announced strong retaliatory tariffs) and how it might, in fact, BENEFIT from a new world order,” he said.
Mahindra admitted that India, in this context, “is not a major topic of discussion.”
However, he reminded that India is poised to be the third largest economy in the world soon.
“But I believe most are missing out on the fact that not too long from now, India will be the world’s third largest economy and one that is also the world’s largest democracy. It is also relatively well placed given its enormous domestic consumption and its strong indigenous supply chains.”
Anand Mahindra said that Trump tariffs may bring in significant opportunity for India.
“So India has a significant opportunity to become a major ‘pole’ of a new, multipolar world. It would behoove us to have a measured reaction to the tariff impositions and respond in a way that doesn’t jeopardise our long term, strategic interests,” he said.
Anand Mahindra further suggested that India must build scenarios on policies that the country should adopt to make full use of the opportunity to become one of the most reliable economies.
“We must build scenarios of the policies we should rapidly adopt to leverage the situation and emerge as the first and most reliable economic partner of countries around the world,” he said.
Trump tariffs on India
Donald Trump announced new import tariffs on Wednesday (local time), outlining the rates to be imposed on countries around the world. India will face a 26 per cent levy under the new Trump tariffs.
Calling Prime Minister Narendra Modi a “great friend,” Trump said that India charges the US 52 per cent levy, and “we charge them almost nothing.”
Trump’s announcement came while he addressed the ‘Make America Wealthy Again Event.’
Addressing the event, Donald Trump said, “India very, very tough. The Prime Minister just left and is a great friend of mine, but you are not treating us right. They charge us 52 per cent, and we charge them almost nothing…”
