New Delhi: As the United States announced a punitive 25 per cent tariff hike on Indian goods, raising the total duties to 50 per cent, Mahindra Group Chairman Anand Mahindra has called on India to turn the global disruption into an opportunity for sweeping domestic reform. Hours after the US move triggered diplomatic tensions between Washington and New Delhi, the top industrialist urged India to respond not with retaliation, but with transformation.
The tariff escalation, initiated by former US President Donald Trump, targets India for its continued purchase of Russian oil, even though other countries including China and Turkey remain large buyers. India has described the decision as “extremely unfortunate” and said it will take all necessary measures to safeguard national interests. In a statement, the Ministry of External Affairs pointed out that the US and European Union themselves maintain extensive trade ties with Russia, questioning the singling out of India.
Trump’s executive order gives a 21-day window before the additional tariffs are enforced. He has indicated that the order could be modified if India halts oil imports from Russia or if Moscow agrees to a ceasefire in its ongoing conflict with Ukraine. However, the order also warns of further punitive action if either India or Russia retaliates. India has reiterated that its energy purchases are guided by market conditions and the need to ensure the energy security of its 1.4 billion citizens.
Reacting to the development, Mahindra said the situation should be viewed through the lens of the “law of unintended consequences.” Posting on social media platform X, he cited examples from Europe and Canada, where external pressure had triggered structural reforms. In Europe, growing friction over tariffs has led to a re-evaluation of defence and fiscal priorities, potentially catalyzing a new growth phase. In Canada, long-standing internal trade barriers are being dismantled to create a more integrated economy.
Mahindra asked whether India could harness this moment of global churning to engineer its own economic renewal. Drawing parallels with the 1991 balance of payments crisis that prompted India’s landmark liberalisation, he said that today’s tariff shock could become a similar turning point, if India acts decisively.
He called for radically improving the ease of doing business, including the creation of a genuinely effective single-window clearance mechanism for investment proposals. While noting that many investment regulations fall under the jurisdiction of individual states, he suggested that a coalition of willing states could pilot the platform in alignment with national objectives. According to Mahindra, demonstrating “speed, simplicity, and predictability” could make India a preferred destination for global capital in an increasingly fragmented world.
The industrialist also highlighted tourism as a vastly underexploited sector for foreign exchange and employment. He recommended accelerating visa processing, improving tourist services, and creating dedicated tourism corridors around existing hotspots, ensuring security, sanitation, and hygiene. These corridors, he said, could serve as models of excellence and inspire broader improvements across the country.
Mahindra further recommended a broader policy agenda to build liquidity for micro, small and medium enterprises, accelerate infrastructure investment, expand the Production Linked Incentive (PLI) schemes, and rationalise import duties to lower the cost of manufacturing inputs. Such reforms, he argued, would improve India’s competitiveness and long-term economic resilience.
“We cannot fault others for putting their nations first,” Mahindra wrote, “but we should be moved to make our own nation greater than ever.” While Trump’s executive order casts a shadow over trade relations, Mahindra’s intervention reframes the moment as a possible inflection point in India’s growth story, if the country chooses to respond with structural reform instead of defensive posturing.
As India navigates the complex diplomatic fallout and prepares for the impact of higher tariffs, the call from one of its most influential business leaders offers a roadmap: turn adversity into advantage, and short-term pressure into long-term transformation.
