'Seize this moment': Anand Mahindra advises India to do a 1991-like 'Manthan' to find economic 'Amrit' amid Trump tariffs

Amid rising global trade tensions, Anand Mahindra has called on India to seize the moment and pursue deep structural reforms instead of retaliating against the United States’ decision to impose a steep 50% tariff on Indian goods. In a post on X, the Mahindra Group chairperson likened the situation to the 1991 economic crisis, which triggered liberalisation, and suggested that today’s tariff standoff could serve as a similar turning point for bold domestic reform.

Manthan' for 'Amrit'

Mahindra referred to the ongoing global trade disruptions as a kind of modern-day ‘Manthan’—a churning that, if responded to wisely, could produce ‘Amrit’ or long-term economic benefits for India. Citing the “law of unintended consequences,” he pointed to how the tariff war has nudged Europe into higher defence spending and fiscal flexibility, while Canada has begun dismantling internal trade barriers to strengthen its economic resilience. He urged India to respond in kind by radically improving the ease of doing business, creating a single-window investment system, and unlocking tourism as a key source of foreign exchange and employment.

Anand Mahindra, chairperson of Mahindra Group, has called on India to respond with economic reforms instead of retaliation after US President Donald Trump announced a 50% tariff on Indian goods on Wednesday.


In a post on X, Mahindra likened the global trade tensions to India’s 1991 foreign exchange crisis, which led to major economic reforms. He suggested that the current situation could also become a turning point for transformative change.

‘Unintended consequences’ of the tariff war

Mahindra pointed to the “law of unintended consequences,” saying that other countries are using the disruption caused by the tariff war to push much-needed structural reforms. He said Europe and Canada are adapting in ways that could have long-term global benefits.

“The ‘law of unintended consequences’ seems to be operating stealthily in the prevailing tariff war unleashed by the U.S. Two examples: The EU may appear to have accepted the evolving global tariff regime, responding with its own strategic adjustments. Yet the friction has…”

He said France and Germany have increased defence spending, while Germany has started to move away from strict fiscal discipline, which may support economic revival. In Canada, he noted that the country is removing internal trade barriers that have held back economic integration.

“These ‘unintended consequences’ could become long-term positives for global growth,” Mahindra wrote, urging India to create its own version of a virtuous consequence instead of merely reacting to external pressures.

Focus on investment, ease of business, and tourism

To attract global investors looking for stable and predictable policies, Mahindra said India must make it easier to do business. He recommended the creation of a single-window clearance system, better infrastructure, and globally benchmarked tourism corridors.

He also called for faster visa approvals to unlock the full potential of tourism, which he said can become a major driver of employment and foreign exchange.

Reforms needed in MSMEs and manufacturing

Mahindra listed several areas for immediate reforms. These include improved liquidity for MSMEs, faster rollout of infrastructure projects, expanding the production-linked incentive (PLI) scheme, and rationalising import duties on manufacturing inputs.

“We cannot fault others for putting their nations first. But we should be moved to make our own nation greater than ever,” he wrote.