Can global tariff manthan yield some Amrit for us — a 1991-like reform moment: Anand Mahindra

Anand Mahindra, Chairman, Mahindra Group (File image)

In light of the tariff war unleashed by US President Donald Trump, industrialist Anand Mahindra suggested a strategic roadmap for India to capitalize on prevalent global trade disruptions and emerge from it as a stronger economic force. Drawing parallels with how other nations have adapted to changing tariff regimes, Mahindra said he believes that India can turn these challenges into opportunities.

In a post on X (formerly known as Twitter), the Chairman of Mahindra Group said, "....Shouldn’t India too seize this moment to shape a virtuous consequence for itself? Just as the 1991 forex reserves crisis triggered liberalisation, can today’s global ‘Manthan’ over tariffs yield some ‘Amrit’ for us?"

He identified two critical areas saying India must focus its immediate attention on them to build competitiveness and attract global investment.

As the first step, he suggested, "Radically Improve Ease of Doing Business
—India must go beyond incremental reform and create a genuinely effective single-window clearance system for all investment proposals.
—While states control many investment regulations, we can begin with a coalition of willing states aligning with a national single-window platform.
—If we demonstrate speed, simplicity, and predictability, we can make India an irresistible destination for global capital in a world seeking trusted partners."

Mahindra emphasized that India needs to improve ease of doing business, and move beyond small-scale improvements to build an effective single-window clearance system for investment proposals. He acknowledged that while individual states control many investment regulations, the country can start with willing states that align with a national platform.

He said this approach would demonstrate "speed, simplicity, and predictability" — qualities that make any nation attractive to international investors seeking reliable partners.

The Mahindra Group chairman believes that creating such streamlined processes would position India as an irresistible destination for global capital, particularly during times when businesses worldwide are reassessing their partnerships and investment strategies.

In the second step, he suggested, "Unleash the Power of Tourism as a Forex Engine
—Tourism is one of the most underexploited sources of foreign exchange and employment.
—We need to dramatically accelerate visa processing, improve tourist facilitation, and build dedicated tourism corridors around existing hotspots, offering assured security, sanitation, and hygiene.
—These corridors can serve as models of excellence, encouraging other regions to emulate and raise national standards."

The second pillar of Mahindra's vision focuses on unlocking tourism's potential as a foreign exchange generator. He points out that tourism remains significantly "underexploited sources of foreign exchange and employment" despite its capacity to create employment and bring in foreign currency.

His recommendations include dramatically faster "visa processing, improved tourist facilitation" services, and the building of "dedicated tourism corridors around existing hotspots". He said these corridors would guarantee security, sanitation, and hygiene standards, serving as excellence models that could inspire other regions to elevate their offerings.

Lastly, he suggests, "...broader action agenda to build on these pillars: Liquidity & Support for MSMEs; Infrastructure Investment acceleration; A Manufacturing Push, via enhancement and expansion of the scope of PLI schemes; Rationalise import duties so that duty on manufacturing inputs are lowered and assist in improving our competitiveness."

Beyond the primary focus areas, he suggests a broader action framework that includes supporting micro, small, and medium enterprises with better liquidity access, accelerating infrastructure investments, and expanding manufacturing capabilities through enhanced Production Linked Incentive (PLI) schemes.

He also advocates for rationalizing import duties, particularly lowering costs on manufacturing inputs to improve India's overall competitiveness in global markets.

"Let the unintended consequences we create be the most intentional and transformative ones of all. We cannot fault others for putting their nations first. But we should be moved to make our own nation greater than ever," he says, adding that while nations naturally prioritize their interests, India should use this moment to pursue intentional transformation rather than simply react to external pressures.