'Attack Trump with tourism': Amitabh Kant's playbook to beat US tariffs

Former NITI Aayog CEO Amitabh Kant has urged India to turn US trade tariffs into a springboard for sweeping economic reforms - with a big bet on tourism that he describes as the country's most powerful countermeasure. 

Speaking to CNBC-TV18's Shereen Bhan, Kant framed the 50% tariffs announced by US President Donald Trump, due to take effect in 20 days, as both a challenge and an opening. 

"The world is in a state of flux. India is being tested, but every crisis is also an opportunity. We should not let this opportunity slip," Kant said. "We should really use this opportunity to galvanise ourselves to bring in radical reforms in all sectors of our economy, make ourselves very competitive, and make India a very key driver of global growth. This is, to my mind, a massive opportunity for reforms."

Kant outlined a reform wish list - simplifying GST to just two slabs, streamlining personal income tax, removing restrictive quality control orders, cutting taxes on inputs and components to integrate India into global value chains, and cleaning up cities to boost tourism appeal.

But his central thrust was a call to aggressively grow tourism as a strategic weapon against tariffs. "There is no other sector to beat Trumpian tariff than travel and tourism. So, if India wants to compensate for the 50% tariff, make your tourism grow. It'll more than compensate for the Trumpian tariff. This is a sector that can really drive India's growth story in the coming years and can create jobs. So, growth with jobs will come from travel and tourism."

Kant argued that the travel and tourism sector could create an estimated 63 million jobs, citing the World Travel and Tourism Council. "Which sector can create 63 million jobs? No other sector. And politicians want growth with jobs. This is the sector that will create jobs for Indians," he said.

To achieve this, he proposed a major funding commitment: "Provide Rs 20,000 crore to the tourism industry to go and promote and penetrate global markets. Nothing less. Penetrate every single global market with a brand campaign that will get you tourists from across the world. Get the rich and famous to visit India. Attack Trump with travel and tourism."