'Crisis must be fully utilised': 50% Trump tariff is a gift in disguise, says Amitabh Kant

As President Donald Trump slaps a punishing 50% tariff on Indian exports over Russian oil ties, former G20 Sherpa Amitabh Kant is flipping the script—calling it a “once in a generation opportunity” for India to push bold economic reforms.

“Trump has provided us a once in a generation opportunity to take the next big leap on reforms. Crisis must be fully utilised,” Kant posted on X, urging policymakers to treat the tariff shock as a springboard for structural change.

Kant, the former CEO of NITI Aayog, made the remarks as Indian exporters brace for impact from Trump’s tariff escalation—doubling the 25% rate announced just last month. The move, effective today for the initial levy and in 21 days for the additional hike, penalizes India for what Trump describes as “continued buying” of Russian oil and defense equipment.

In a post on Truth Social, Trump labeled India’s trade barriers “strenuous and obnoxious,” accusing New Delhi of undermining Western efforts to isolate Moscow. “They have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY,” Trump wrote.

The consequences are sweeping. Except for energy products, most Indian exports will now face tariffs of 50% or more. Affected sectors include textiles, gems and jewellery, chemicals, carpets, machinery, steel, aluminium, and furniture. Vehicles will carry a 26% tariff, while petroleum products face a 6.9% duty.

Analysts warn the tariff shock could erode India’s competitiveness in the U.S. market. But Kant argues it’s also a wake-up call—an external jolt that could push India toward long-deferred reforms in trade policy, manufacturing competitiveness, and market liberalisation.