Can this manthan yield amrit? Anand Mahindra says tariff war is India’s 1991 moment if it acts boldly

As Donald Trump escalates tariff war with India, industrialist Anand Mahindra has urged Delhi to respond not with retaliation—but with bold reform. 

In a post on X, Mahindra called the U.S.-led tariff war a trigger for “unintended consequences” that could, if harnessed wisely, spark a new wave of economic transformation.

Citing recent shifts in global economic behavior, Mahindra pointed to how the EU and Canada have quietly leveraged the crisis to their long-term advantage. In Europe, he noted, the tariff-driven friction has nudged countries like France and Germany to increase defence spending and, in Germany’s case, soften fiscal rigidity—moves that could reignite growth across the continent. In Canada, persistent internal trade barriers are finally being addressed, moving the country closer to a unified market.

“These ‘unintended consequences’,” Mahindra wrote, “could become long-term positives for global growth.”

The question, he posed to Indian policymakers, is whether India can create its own virtuous cycle. Drawing a parallel to India’s 1991 forex crisis that led to sweeping liberalisation, Mahindra asked whether today's “global manthan over tariffs” could yield some “Amrit” for India.

He proposed two urgent reforms.

First, radically improve the Ease of Doing Business. Mahindra called for a genuine single-window clearance system that would operate across states. While regulatory control lies with individual states, a coalition of cooperative ones could set the tone by aligning with a national platform. The goal: speed, simplicity, and predictability—making India irresistible to global capital.

Second, unleash the power of tourism as a foreign exchange engine. With global tourism rebounding, Mahindra argued for accelerated visa processing, infrastructure upgrades, and dedicated “tourism corridors” offering hygiene, safety, and high-quality experiences. These, he said, could serve as model zones and raise national standards.

Beyond that, Mahindra called for liquidity support for MSMEs, faster infrastructure rollout, a deeper manufacturing push via expanded PLI schemes, and import duty rationalisation to boost global competitiveness.

“The unintended consequences we create,” Mahindra concluded, “should be the most intentional and transformative ones of all.”