'India will move beyond services, create Apples of the world': Hiranandani on Trump tariff

Real estate tycoon Niranjan Hiranandani has said that the current tariff tensions with the US could become a turning point for India to evolve beyond its services-led economic model. He said India had for too long assumed the global balance of power would remain unchanged. "We took America for granted. We take the world for granted. We treat the status quo as granted. We do believe that the status quo of the world which happened since World War II is not going to change, that the bipolar situation which existed in the world would continue forever. Both of these have changed completely," he said while speaking to ANI's Smita Prakash.

Referring to the new US administration led by President Donald Trump, he said: "The new US administration has made it very clear that you may be my friend, you may be my enemy. It doesn't matter what it is. As long as the trade is not in their favor at this point, they are not going to be with you. So, America has made it very clear as to what they want."

Hiranandani added that Prime Minister Narendra Modi's vision of Atmanirbhar Bharat aligns with this moment of disruption, arguing that protectionism in Washington could accelerate India's push for self-reliance. "What the Trump administration has done is going to speed India in that direction. Not by choice of doing it faster but because we are converting a challenge into an opportunity," he said.

The Hiranandani Group MD urged Indian businesses to seek alternative markets and focus on creating global products, not just services. "If you can't export to America, let's look at an alternative base. Of course, products may be different, opportunities will be different, but why not look at the whole world?"

"What is going to happen is that the Indian mindset...which was working on a services business all the time - serve America, serve the rest of the world, not create the products of the world, not create Apple, not create Microsoft, not create those. We were hesitant, and we weren't confident to do so. Today, there is an opportunity where beyond services, India will now create those products," he added.

He cited examples of India's growing manufacturing confidence, including recent aviation decisions. "We are not buying aeroplanes from America. We are ordering them from HAL. But a couple of months ago, people were diffident. HAL has not delivered. Do we give it to HAL or not? Now, the decision is clear. We have to become Atmanirbhar. A deadline is given for these aeroplanes to be delivered to the air force," he said.

Hiranandani acknowledged the pain that industries and workers may face in the short term due to tariffs, H-1B visa restrictions, and trade disruptions, but likened it to the reforms of 1991. "All change is painful. In 1991, there was much more pain than what is happening today. In 1991, all our industries were protected. The Ambassador car was protected. Every item manufactured in India was protected. We had total protection. But we were zero net worth. We had no money in our Reserve Bank. We opened up. We became stronger. Everything has changed. That change was 100 times bigger than the challenge that we have today," he said.

He admitted that smaller businesses reliant on exports may face near-term hardships in the short run. "The demographics of India are too big. We have to cater to the Indian situation. Copy what China has done by creating exports, but also to see that the demographics of the country also increases the situation to do it," he said.

Citing India's rapid infrastructure growth, Hiranandani said the country is now building around 35 kilometres of national highways each day - a pace comparable to China's peak construction years - and expanding its manufacturing in sectors ranging from aviation to space. "I agree that pain is going to be there in the short run, but it's like an injection or an operation to make you healthy again."