'Trump tariff a wake-up call for India': Amitabh Kant urges bold reforms, diversifying of export markets
This is not about Russian oil. It is about India's energy security and strategic autonomy, which we should never compromise, writes Amitabh Kant
- Aug 27, 2025,
- Updated Aug 27, 2025 3:08 PM IST
Former Niti Aayog CEO Amitabh Kant on Wednesday described the United States' imposition of additional tariffs on Indian goods as a moment India must respond to with strategic resolve. "Trump's tariffs must be a wake-up call for India. The irony is striking: the U.S. is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead. Let us be clear, this is not about Russian oil. It is about India's energy security and strategic autonomy, which we should never compromise," Kant wrote on X.
He urged India to take the tariffs as an opportunity for comprehensive economic reform. "Rather than intimidate us, these global headwinds must galvanise India into bold, once-in-a-generation reforms, while also diversifying our export markets to secure long-term growth and resilience," he added.
Earlier this month, Kant had emphasised that India must hold firm against US President Donald Trump's tariff threats without compromising its strategic autonomy. He called for simplifying GST to two slabs, overhauling personal taxes, scrapping restrictive quality control orders, and cutting duties on inputs to strengthen India's integration into global value chains. "This requires huge reforms. Use this opportunity to make yourself very competitive and a key driver of global growth," he said.
Kant also highlighted the potential for collaborative manufacturing with China as a long-term solution to boost India's economic growth. "Instead of importing from China, we should get the Chinese to do joint ventures with Indian companies on a minority stake and do manufacturing in India. This will enable India to do both input manufacturing and component manufacturing and accelerate the process of Make in India and accelerate the process of manufacturing in India and that is a long-term answer to economic growth," he said while speaking to news agency ANI. "We need to grow at an eight to nine per cent per annum rate year after year and instead of importing, we need to do manufacturing with China in India, which will create jobs in India."
The remarks come in the backdrop of US tariffs on Indian products. The United States on Monday issued a draft notice detailing plans to implement an additional 25 per cent tariff on Indian products from August 27, impacting more than USD 48 billion worth of India's exports. With the earlier 25 per cent tariff imposed on August 7, the total duty on Indian goods entering the US market will now, with certain exceptions, reach 50 per cent.
According to the US Department of Homeland Security, the increased levies will affect Indian products "entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025." Key sectors expected to bear the brunt include textiles, clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery. Certain sectors, such as pharmaceuticals, energy products, and electronic goods, are exempted from the sweeping duties.
The draft order also clarified that Indian products already loaded on ships before August 27 will be exempted, provided they are cleared for use or withdrawn from warehouse before September 17, 2025, and the importer certifies this to US Customs with a special code. Brazil is the only other US trading partner facing a 50 per cent import duty.
Former Niti Aayog CEO Amitabh Kant on Wednesday described the United States' imposition of additional tariffs on Indian goods as a moment India must respond to with strategic resolve. "Trump's tariffs must be a wake-up call for India. The irony is striking: the U.S. is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead. Let us be clear, this is not about Russian oil. It is about India's energy security and strategic autonomy, which we should never compromise," Kant wrote on X.
He urged India to take the tariffs as an opportunity for comprehensive economic reform. "Rather than intimidate us, these global headwinds must galvanise India into bold, once-in-a-generation reforms, while also diversifying our export markets to secure long-term growth and resilience," he added.
Earlier this month, Kant had emphasised that India must hold firm against US President Donald Trump's tariff threats without compromising its strategic autonomy. He called for simplifying GST to two slabs, overhauling personal taxes, scrapping restrictive quality control orders, and cutting duties on inputs to strengthen India's integration into global value chains. "This requires huge reforms. Use this opportunity to make yourself very competitive and a key driver of global growth," he said.
Kant also highlighted the potential for collaborative manufacturing with China as a long-term solution to boost India's economic growth. "Instead of importing from China, we should get the Chinese to do joint ventures with Indian companies on a minority stake and do manufacturing in India. This will enable India to do both input manufacturing and component manufacturing and accelerate the process of Make in India and accelerate the process of manufacturing in India and that is a long-term answer to economic growth," he said while speaking to news agency ANI. "We need to grow at an eight to nine per cent per annum rate year after year and instead of importing, we need to do manufacturing with China in India, which will create jobs in India."
The remarks come in the backdrop of US tariffs on Indian products. The United States on Monday issued a draft notice detailing plans to implement an additional 25 per cent tariff on Indian products from August 27, impacting more than USD 48 billion worth of India's exports. With the earlier 25 per cent tariff imposed on August 7, the total duty on Indian goods entering the US market will now, with certain exceptions, reach 50 per cent.
According to the US Department of Homeland Security, the increased levies will affect Indian products "entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025." Key sectors expected to bear the brunt include textiles, clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery. Certain sectors, such as pharmaceuticals, energy products, and electronic goods, are exempted from the sweeping duties.
The draft order also clarified that Indian products already loaded on ships before August 27 will be exempted, provided they are cleared for use or withdrawn from warehouse before September 17, 2025, and the importer certifies this to US Customs with a special code. Brazil is the only other US trading partner facing a 50 per cent import duty.