Anand Mahindra Calls Trump's 50% Tariff As 'Manthan': How India Can Seize 'Amrit' From This Trade War

Indian billionaire and businessman Anand Mahindra has reacted to the latest additional tariff by US President Donald Trump on India. In the late hours of August 6th, Trump increased the tariff to 50% on its major trade partner, India, due to the latter's trade deals with Russia.

Mahindra Group's chief, Anand Mahindra, called Trump's 50% tariff 'Manthan' and believes there could be unintended long-term opportunity for India from this situation.

On his X handler, Anand said, "The 'law of unintended consequences' seems to be operating stealthily in the prevailing tariff war unleashed by the U.S."

He shed light on two situations:

Firstly, he explained that the European Union (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.

Due to which, he added, 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.

Secondly, Anand pointed out that 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.

"Both these 'unintended consequences' could become long-term positives for global growth," he added.

Shouldn't India too seize his moment to shape a virtuous consequence for itself? Anand questioned.

Just as the 1991 forex reserves crisis triggered liberalisation, he asked, "can today's global 'Manthan' over tariffs yield some 'Amrit' for us?"

Thereby, Anand highlighted two steps that India could take to turn the 50% tariff from a setback to an opportunity. These are:

Radically Improve Ease of Doing Business:

-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.

2. Unleash the Power of Tourism as a Forex Engine

-Tourism is one of the most underexploited sources of foreign exchange and employment.

-We need to dramatically accelerate visa processing, improve tourist facilitation, and build dedicated tourism corridors around existing hotspots, offering assured security, sanitation, and hygiene.

-These corridors can serve as models of excellence, encouraging other regions to emulate and raise national standards.

What broader action agenda can be taken to build on these pillars?

Anand said, "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."

Read Full Text Of Anand Mahindra On Latest US-India Tariffs War Here:

TRUMP's 50% Tariff On India:

Just as he had warned, Trump announced an additional 25% tariff on India, taking the total tariff to 50% on India. The White House has issued the executive order.

"I find that the Government of India is currently directly or indirectly importing Russian Federation oil," Trump said.

"Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 per cent," the US' 47th President added.

As per the executive order, this rate of duty shall be effective concerning goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 21 days after the date of this order, except for goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit before entry into the United States before 12:01 a.m. eastern daylight time 21 days after the date of this order; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on September 17, 2025.

READ In Detail About Trump's 50% Tariff Here: