In a bold twist to a growing trade standoff, former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant has described U.S. President Donald Trump’s 50% tariff hike on Indian exports as a “once in a generation opportunity” to accelerate economic reforms in India.
“Trump has provided us a once in a generation opportunity to take the next big leap on reforms. Crisis must be fully utilised,” Kant posted on X (formerly Twitter), urging Indian policymakers to use the tariff shock as a springboard for structural transformation.
The remarks come amid rising anxiety among Indian exporters following Trump’s surprise escalation of tariffs—doubling the 25% rate announced just last month. The first phase of the new tariffs takes effect immediately, while the additional 25% hike will come into force in 21 days.
The tariffs are aimed at penalising India over its continued imports of Russian oil and defense equipment. In a statement on Truth Social, Trump blasted India’s trade practices, calling its barriers “strenuous and obnoxious,” and accused the country of weakening Western efforts to isolate Russia.
“They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY,” Trump wrote.
The impact of the move is sweeping. Except for energy products, most Indian exports to the U.S. will now face 50% tariffs or higher. Sectors hit hardest include textiles, gems and jewellery, chemicals, carpets, engineering goods, steel, aluminium, and furniture. Vehicles will now attract a 26% duty, while petroleum products will face a 6.9% tariff.
Trade analysts warn that the punitive tariffs could severely dent India’s competitiveness in its second-largest export market. However, Kant sees the crisis as an inflection point.
“This is a wake-up call. An external shock like this should galvanise India to undertake long-pending reforms in trade policy, boost manufacturing competitiveness, and embrace deeper market liberalisation,” he added.
The development is likely to stir significant debate within India’s economic and strategic circles, with calls growing for the government to balance geopolitical alignment with economic resilience.
As the world watches the fallout of Trump’s latest move, India now stands at a critical crossroads—either recoil under protectionist pressure or use the moment to reimagine its global economic playbook.
