Sanjeev Sanyal on Trump tariffs: 'No great power ever emerged without facing turbulence; we must stand firm'
Sanjeev Sanyal acknowledged the current phase of global instability but asserted that India must embrace the turbulence as part of its emergence as a third global economic power
- Oct 30, 2025,
- Updated Oct 30, 2025 6:01 PM IST
India's economic growth may face headwinds due to the US tariffs, but economist and PM-EAC member Sanjeev Sanyal is clear: the country will not back down in the face of external pressures. "We won't escalate the situation, but we will stand our ground," he said in a conversation with ORF's Samir Saran, when asked about the unpredictability in global trade triggered by US President Donald Trump's tariffs.
Sanyal acknowledged the current phase of global instability but asserted that India must embrace the turbulence as part of its emergence as a third global economic power. He pointed out that while India's growth this year is projected at 6.5 to 7%, there is potential for a higher rate.
"We'll grow somewhere 6.5 to 7% this year. It looks good compared to the rest of the world, but we could easily be growing in the 7.5 to 8% range. We can't because the rest of the world will currently not give us the space to do so."
Despite the constraints, the economist stressed that India will not escalate its disagreements but stand its ground, especially when it comes to defending national interests. Referring to current tension over Trump tariffs, he said: "My view on this is that we will not escalate the situation, but we will stand our ground."
"The reason is that if we have ambitions of being a third global power, then we should be willing to stand up for our interests. And this is as good a time as it will get to do it. We won't grow at 7.5%, we'll grow at 6.5% - not a great tragedy. There's no other macroeconomic stability pressure on us, inflation is well-behaved at 1.5%. The banking system is in very good health. Our foreign exchange reserves are at $700 billion. If under these circumstances we cannot take a little bit of pressure, then we shouldn't be in the game."
Drawing on historical examples, Sanyal offered a global perspective on the pressures nations face as they rise to prominence. He pointed out that every country that has emerged as a global power had to navigate turbulent times.
"When Britain became a great power, it had to stand up to French power. When the Germans became a great power, they had to win the Franco-Russian wars. When the Russians emerged, they had to hold their own against both Britain and France in the Crimean War. The Japanese emerged, they had to defeat the Russians in 1905. The Americans had to win two world wars. The Chinese had to stand up to the Americans in Korea and Vietnam."
"We only have to survive the Trump tariffs. We are getting it cheap," the economist concluded.
India's economic growth may face headwinds due to the US tariffs, but economist and PM-EAC member Sanjeev Sanyal is clear: the country will not back down in the face of external pressures. "We won't escalate the situation, but we will stand our ground," he said in a conversation with ORF's Samir Saran, when asked about the unpredictability in global trade triggered by US President Donald Trump's tariffs.
Sanyal acknowledged the current phase of global instability but asserted that India must embrace the turbulence as part of its emergence as a third global economic power. He pointed out that while India's growth this year is projected at 6.5 to 7%, there is potential for a higher rate.
"We'll grow somewhere 6.5 to 7% this year. It looks good compared to the rest of the world, but we could easily be growing in the 7.5 to 8% range. We can't because the rest of the world will currently not give us the space to do so."
Despite the constraints, the economist stressed that India will not escalate its disagreements but stand its ground, especially when it comes to defending national interests. Referring to current tension over Trump tariffs, he said: "My view on this is that we will not escalate the situation, but we will stand our ground."
"The reason is that if we have ambitions of being a third global power, then we should be willing to stand up for our interests. And this is as good a time as it will get to do it. We won't grow at 7.5%, we'll grow at 6.5% - not a great tragedy. There's no other macroeconomic stability pressure on us, inflation is well-behaved at 1.5%. The banking system is in very good health. Our foreign exchange reserves are at $700 billion. If under these circumstances we cannot take a little bit of pressure, then we shouldn't be in the game."
Drawing on historical examples, Sanyal offered a global perspective on the pressures nations face as they rise to prominence. He pointed out that every country that has emerged as a global power had to navigate turbulent times.
"When Britain became a great power, it had to stand up to French power. When the Germans became a great power, they had to win the Franco-Russian wars. When the Russians emerged, they had to hold their own against both Britain and France in the Crimean War. The Japanese emerged, they had to defeat the Russians in 1905. The Americans had to win two world wars. The Chinese had to stand up to the Americans in Korea and Vietnam."
"We only have to survive the Trump tariffs. We are getting it cheap," the economist concluded.