Mumbai: Hours after US President Donald Trump signed a nine-section Executive Order imposing an additional 25% tariff on India for importing oil from Russia, bringing the total tariff on goods from India to 50%, Mahindra Group Chairman Anand Mahindra suggested two strong steps India could take to turn the situation to its advantage.
In a post on micro-blogging website X Mahindra said,"The ‘law of unintended consequences’ seems to be operating stealthily in the prevailing tariff war unleashed by the U.S."
Further proving his point, he gave two examples. "Two examples: 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 the 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."
He further suggested two urgent reforms that India should take. "1. Radically Improve Ease of Doing Business." Explaining further he said, "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."
Another step he suggested is to "unleash the power of tourism as a forex engine.'"
The industrialist also urged providing liquidity support for MSMEs, accelerating infrastructure development, a manufacturing Push, via enhancement and expansion of the scope of PLI schemes; Rationalise import duties so that duty on manufacturing inputs are lowered and assist in improving our competitiveness.
Mahindra ended the post by saying "We cannot fault others for putting their nations first. But we should be moved to make our own nation greater than ever."
US President Trump Imposes Total 50% Tariff On Goods From India
US President Donald Trump on Wednesday signed a nine-section Executive Order imposing an additional 25% tariff on India in response to its continued purchase of Russian oil. With this, the total tariff on Goods From India will be 50%. Trump had announced a 25 per cent tariff on India last week. The order states that India is directly or indirectly importing oil from Russia, which the US considers a threat to its national security and foreign policy.
The new tariffs will be effective to all eligible Indian goods entering the US from 21 days after the order’s signing, except for shipments already in transit before the deadline and cleared before September 17.
