'Trump has misread India': Amitabh Kant calls for bold reforms amid tariff tensions

India must use the current trade tensions with the United States as a moment for internal transformation, not retaliation, said Amitabh Kant, India’s G20 Sherpa and former CEO of NITI Aayog, at the BT India@100 event. Responding to US President Donald Trump’s recent remark calling India a “dead economy,” Kant said, “India is anything but a dead economy. In fact, it’s not India that has misread Trump—it is Trump who has misread India.”

With speculation swirling over whether India will retaliate through digital taxes or delay Boeing aircraft orders, Kant dismissed such moves as counterproductive. “India should remain cool, calm, and collected,” he said. “We still have about 20 days before these tariffs come into effect. This is just part of Trump’s negotiation style—he’s done this with many countries. We should stand firm, but not escalate.”

He cautioned against any compromise on India’s strategic autonomy, urging that negotiations with Washington be handled maturely, with the long-term national interest in mind.

Kant views the current moment not as a setback, but as a unique opportunity for bold reform. “Historically, India has always delivered in times of crisis,” he said. He called for simplification of taxes and rules—moving to just two slabs under GST and reducing the statutory liquidity ratio. He also urged the government to boost public capital expenditure and revive the travel and tourism sector.

“Importing tourists doesn’t attract tariffs,” he remarked.

In a pointed rebuttal to Trump’s “dead economy” comment, Kant listed India’s many recent achievements—from the rollout of the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) to the creation of a 1.5 billion-strong digital identity system and a leading global share in real-time payments.

“We are now the fourth-largest economy and will soon be the third,” he said, adding that the country has been building infrastructure on a massive scale in housing, electricity, water connections, and roads. “No other country has a digital identity system for 1.5 billion people,” he noted.

While acknowledging that the Centre has implemented a series of major structural reforms, Kant said the next wave must come from the states. He also pushed for radical simplification of bureaucracy. “No form should be longer than half a page, and no law longer than two pages,” he said. “Excessive rules only stifle entrepreneurship.”

Pointing to his widely acclaimed “Incredible India” campaign, Kant said the brand still resonates globally.

“India is larger than 24 European countries combined—complex, diverse, and vibrant. We don’t need a new tagline; this one embodies our spirit.” However, he added that Indian states must develop their own tourism identities to attract investment and create jobs.

Looking ahead, Kant said India must aim to become a $30 trillion economy by 2047, powered by private enterprise and consistent reforms. “We need to grow at 8–9% annually for the next 30 years,” he said, adding, “This is not just India’s decade—it’s India’s century.”