As India braces for a fresh round of tariffs imposed by the United States, Mahindra Group chairman Anand Mahindra urged the country to turn the crisis into a powerful opportunity by implementing bold economic reforms.On Wednesday, US President Donald Trump signed an executive order to impose an additional 25% tariff on Indian imports, citing India’s continued oil trade with Russia. The White House said these imports posed an “unusual and extraordinary threat” to the US, justifying the move on grounds of national security and foreign policy.Once implemented, the total tariff burden on Indian goods entering the US will reach 50%, effective 21 days later.The Ministry of external affairs (MEA) called the move “unfair, unjustified and unreasonable.” In a statement, it said, “The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.”Amid this growing trade tension, Anand Mahindra posted a detailed message on social media platform X, pointing to what he called the “law of unintended consequences” and urged India to shape its own positive outcomes, as other nations like those in the EU and Canada have done during periods of global friction.“The ‘law of unintended consequences’ seems to be operating stealthily in the prevailing tariff war unleashed by the US,” he wrote. Drawing parallels with India’s transformative 1991 economic reforms, he suggested that this moment could become equally significant if the right steps are taken.He proposed two major actions: radically improving ease of doing business and unlocking the potential of tourism as a foreign exchange booster.Here are the two strong steps that India should take today:Improving the ease of doing businessMahindra stressed that India needs to move beyond small, gradual reforms and build a truly efficient single-window clearance system for all investment proposals. He pointed out that while many regulatory powers lie with individual states, a group of cooperative states could come together to launch a unified national platform.“If we demonstrate speed, simplicity, and predictability, we can make India an irresistible destination for global capital in a world seeking trusted partners,” his post said.Unleashing the power of tourism as a foreign exchange engineMahindra described tourism as one of India’s most underused sources of foreign exchange and job creation. He called for a major push to speed up visa processing, improve tourist services, and develop dedicated tourism corridors around popular destinations, with guaranteed safety, cleanliness, and hygiene.“These corridors can serve as models of excellence, encouraging other regions to emulate and raise national standards.”“And a broader action agenda to build on these pillars:Liquidity & Support for MSMEs; Infrastructure Investment acceleration; 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,” he stated.Ending his post with a call for self-reliance, Mahindra wrote, “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 own nation greater than ever.”As tensions simmer between Washington and New Delhi, the coming weeks may prove critical in determining whether India can transform this pressure into progress.
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