Anand Mahindra reacts to Trump’s 50% tariff on India, calls to ‘make our own nation greater than ever’ – Business News

Anand Mahindra, chairperson of the Mahindra Group, has urged India to respond to US President Donald Trump’s announcement of a steep 50% tariff on Indian goods on Wednesday with reform rather than retaliation. In his post on X, Mahindra compares the current global tariff war to the 1991 foreign exchange crisis that led to India’s economic liberalisation, arguing that it could be a turning point for revolutionary change.

In a post on X, he referenced the “law of unintended consequences,” explaining how other economies are using the trade war’s disruptions to push long-overdue structural reforms. He added that  Europe and Canada as examples of nations adapting to the shifting economic landscape in ways that could yield long-term global benefits.

The ‘law of unintended consequences’ seems to be operating stealthily in the prevailing tariff war unleashed by the U.S.

Two examples:

The EU may appear to have accepted the evolving global tariff regime, responding with its own strategic adjustments. Yet the friction has… pic.twitter.com/D5lRe5OWUa

— anand mahindra (@anandmahindra) August 6, 2025

He added that in Europe, the ongoing friction has led France and Germany to ramp up defence spending, while Germany’s shift away from strict fiscal orthodoxy may help catalyse a broader economic revival. In Canada, internal trade barriers that have long hindered economic integration are now being dismantled, bringing the country closer to a unified internal market and boosting resilience. “These ‘unintended consequences’ could become long-term positives for global growth,” Mahindra wrote, urging India to create its own version of a virtuous consequence instead of merely reacting to external pressures.

He maintained that in order to draw in foreign investment looking for stable and predictable conditions, India needs to drastically increase the ease of doing business, beginning with the establishment of an efficient single-window clearance system. Mahindra also advocated for improved infrastructure, internationally benchmarked tourism corridors, and quicker visa processing in order to fully realise the unrealised potential of tourism as a significant source of employment and foreign exchange

Mahindra stated that a broader reform agenda, including enhanced liquidity for MSMEs, faster infrastructure investment, expansion of the PLI manufacturing incentive schemes, and rationalisation of import duties on manufacturing inputs will improve competitiveness. He wrote, “We cannot fault others for putting their nations first. But we should be moved to make our own nation greater than ever.”