India must treat Trump’s tariffs as a wake-up call for structural reforms: Amitabh Kant

Looking ahead to the Viksit Bharat 2047 vision, Kant emphasised that India’s rise to developed nation status within one generation is achievable, but only if efficiency becomes central to governance and growth

India should treat the sharp increase in US tariffs as a trigger for structural reforms and diversification of export markets, former NITI Aayog CEO Amitabh Kant said on Wednesday, calling it an opportunity rather than a setback.

Speaking at the BN Memorial Lecture organized by the IRS (C&IT) Association, Kant remarked, “This is India’s century, no matter what Trump’s tariffs are. In fact, this is a huge opportunity for India to push through reforms that come only once in a generation.”

He dismissed Washington’s justification of penalising India for Russian oil imports, pointing out that other nations import far more. “If Russian oil was truly the issue, then why not China, which imports much more, or Turkey which buys nearly as much as us? Clearly, this is not about Russian oil,” he said.

Kant, who also served as India’s G20 Sherpa, argued that the global supply chain turmoil highlighted the urgent need to improve governance and accelerate the creation of production infrastructure. In a post on X, he wrote, “Trump’s tariffs should serve as a wake-up call. The irony is stark—the US negotiates openly with Russia and China, the largest buyer of Russian oil, but targets India instead. Rather than be intimidated, India must seize this moment to undertake bold reforms and broaden its export footprint for long-term resilience.”

Looking ahead to the Viksit Bharat 2047 vision, Kant emphasised that India’s rise to developed nation status within one generation is achievable, but only if efficiency becomes central to governance and growth. He also pointed to hurdles startups face, noting it can take nearly six and a half months to complete basic registration in India. By comparison, he said, entrepreneurs in countries like New Zealand and Singapore can start operations within a day.

Kant urged CBIC officials to streamline GST registration, reduce delays, and ensure a hassle-free process for businesses.

(With PTI inputs)