Radically improve ease of doing business, unleash power of tourism as forex engine: Anand Mahindra
In a post on X, Mahindra emphasised that India could seize this moment to create the "most intentional and transformative" situation from the ongoing global tariff disruptions, while comparing it to the likes of the economic reforms in India triggered by the 1991 forex reserves crisis.
"The 'law of unintended consequences' seems to be operating stealthily in the prevailing tariff war unleashed by the US," he said in a post on X, and pointed to examples from Europe and Canada, where global trade friction has inadvertently led to economic and structural reforms that strengthen growth and urged India to shape its own positive outcomes from the situation proactively.
He suggested "two strong steps," calling for "radically improve" ease of doing business and "unleash the power of tourism as a forex engine" to counter the US tariffs.
He called for radically improving the ease of doing business through a genuinely effective single-window clearance system for all investment proposals and accelerating tourism by simplifying visa processing, enhancing tourist facilitation, and creating dedicated tourism corridors with assured security, sanitation, and hygiene.
"Two strong steps we can take today are: 1. 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," his post read.
"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," it added.
Mahindra also highlighted that these steps could make India an irresistible destination for global capital while simultaneously generating foreign exchange and employment through tourism and further recommended complementary measures such as providing liquidity and support to MSMEs, accelerating infrastructure investment, promoting manufacturing through expanded production-linked incentive (PLI) schemes, and rationalising import duties to enhance competitiveness.
"And a 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. Let the unintended consequences we create be the most intentional and transformative ones of all," he stated.
He also stressed that while other nations prioritise their own interests, India should be motivated to strengthen and grow its economy.
"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," Mahindra Group Chairman ended.
Earlier, terming the United States' move to impose additional tariffs on India over its oil imports from Russia as "unfair, unjustified and unreasonable," the Ministry of External Affairs (MEA) on Wednesday declared that New Delhi will take "all actions necessary to protect its national interests.
"In an official statement, the MEA said, "The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."
"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," the statement added.
"We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," the MEA stressed.
Earlier, US President Donald Trump signed an Executive Order imposing an additional 25 per cent tariff on imports from India in response to New Delhi's purchase of Russian oil.
According to the order issued by the White House, Trump cited matters of national security and foreign policy concerns, as well as other relevant trade laws, for the increase, claiming that India's imports of Russian oil, directly or indirectly, pose an "unusual and extraordinary threat" to the United States.
After the order, the total tariff on Indian goods will be 50 per cent. While the initial duty comes into effect on August 7, the additional levy will come into effect after 21 days and will be imposed on all Indian goods imported into the US, except for goods already in transit or those meeting specific exemptions.
"Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 per cent," the order stated.
"This rate of duty shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 21 days after the date of this order, except for goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. eastern daylight time 21 days after the date of this order," the order added.
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