Mahindra Group Chairman Anand Mahindra says, "India must go beyond incremental reform to radically improve ease of doing business and become an irresistible destination for global capital by seizing the opportunities created by 'unintended consequences' of US President Donald Trump's tariffs."
Mr Mahindra's remarks came as the US President on Wednesday escalated his tariff offensive against India by slapping an additional 25 percent duty and subsequently doubling it to 50 percent on Indian goods over New Delhi's continuous imports of Russian oil.
He said the "law of unintended consequences" is operating stealthily in the ongoing tariff war unleashed by the US. These have the potential to become long-term positives for global growth. "Shouldn't India too seize this moment to shape a virtuous consequence for itself?" he said.
India condemned the "unfair, unjustified and unreasonable" move that is likely to hit sectors such as textiles, marine and leather exports hard. With this action singling out New Delhi for the Russian oil imports, India will attract the highest US tariff of 50 per cent, along with Brazil.
In a post on X on Wednesday, Mr Mahindra asked if today's "global 'Manthan' over tariffs (can) yield some 'Amrit' for us", just as the 1991 forex reserves crisis triggered liberalisation.
Suggesting "two strong steps" that India can take today, Mr Mahindra said, the first is to "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. While states control many investment regulations, we can begin with a coalition of willing states aligning with a national single-window platform. If we demonstrate speed, simplicity, and predictability, we can make India an irresistible destination for global capital in a world seeking trusted partners," he said.
The industrialist also suggested that the power of tourism be unleashed as a foreign exchange engine. Tourism is one of the most underexploited sources of foreign exchange and employment, he said. "We need to dramatically accelerate visa processing, improve tourist facilitation, and build dedicated tourism corridors around existing hotspots, offering assured security, sanitation, and hygiene. These corridors can serve as models of excellence, encouraging other regions to emulate and raise national standards," he added.
He said the country must ensure liquidity and support for micro, small and medium enterprises, infrastructure investment acceleration, a manufacturing push via enhancement and expansion of the scope of Production Linked Incentive (PLI) schemes, rationalise import duties so that duty on manufacturing inputs is lowered and assist in improving our competitiveness.
"Let the unintended consequences we create be the most intentional and transformative ones of all. We cannot fault others for putting their nations first. But we should be moved to make our nation greater than ever," he wrote on the micro-blogging site.
