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Mahindra urged Indian policymakers to use Trump's tariffs to recalibrate strategies and maximise economic advantage. (Image courtesy: x.com/anandmahindra)

Anand Mahindra sees opportunity for India amid Trump’s tariff storm

| @indiablooms | Apr 05, 2025, at 11:00 pm

Mumbai: Donald Trump’s sweeping tariff measures have sent ripples through the global economy, hitting Asian nations such as China, India and Vietnam particularly hard.

While global attention has largely focused on the consequences for China, Mahindra Group chairman Anand Mahindra believes there’s a bigger story playing out for India.


Focus on China is missing the bigger picture, says Mahindra

In a post on X Friday night, Mahindra remarked that discussions around the global impact of U.S. tariffs have been “revolving around China” and how it might respond.


“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 wrote.

India not in spotlight yet, but should be

Mahindra pointed out that despite the growing relevance of India in the global economy, the country remains absent from most conversations.
“India, in this context, is not a major topic of discussion,” he noted.

He reminded readers that India is soon to become the world’s third-largest economy and is already the largest democracy.

“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.”


India should respond with strategic foresight

While acknowledging the potential impact of the tariffs, Mahindra emphasised that India should respond in a way that strengthens its long-term global position.

“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 wrote.

Call for proactive policymaking

Mahindra also urged Indian policymakers to use this moment to recalibrate strategies and maximise economic advantage.

“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.

India faces 26% tariff under Trump’s plan

Earlier this week, Trump announced new import duties, including a 26% tariff on goods from India. While addressing the ‘Make America Wealthy Again Event,’ the former U.S. President criticised India’s trade policy.

“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…” Trump said, calling Narendra Modi a “great friend.”

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