US tariffs are presenting India with a significant opportunity to transition from a service-based economy to one focused on indigenous product creation, according to Dr. Niranjan Hiranandani, a prominent Indian businessman. This shift aligns with the Atmanirbhar Bharat vision, which promotes self-reliance.
Hiranandani believes that while the tariffs may pose initial challenges, they will ultimately accelerate India's journey towards self-reliance by encouraging the development of its own technological innovations and manufacturing capabilities. This involves moving beyond simply serving global markets and becoming a producer of goods for both domestic consumption and export. He suggests that the Atmanirbhar Bharat and Viksit Bharat initiatives could reach their goals earlier than the projected dates of 2030 and 2047.
Hiranandani's comments came in response to the United States' increasing imposition of tariffs on various sectors, including a proposed 100% tariff on pharmaceutical imports. While acknowledging that these tariffs could affect Indian companies involved in trade with the U.S. in sectors like steel, equipment and pharmaceuticals, Hiranandani emphasized the greater impact would be felt by Americans, as tariffs would lead to increased costs for medicines and other goods in America.
He stated that India should view the challenges arising from the US trade policies as an opportunity for long-term growth. He pointed out that India's growing demographics and the availability of alternative export markets present a favorable environment for pursuing self-reliance. He is not pleased with the tariffs, but recognizes the potential for India to rise to the challenge.
Hiranandani also addressed the impact of recent GST (Goods and Services Tax) cuts, stating that they would likely boost the economy and increase purchasing power among the population. He anticipates that these cuts will lead to lower commodity prices and greater disposable income, resulting in a multiplier effect that could drive India's GDP growth beyond its current rate. He also believes that the fall in affordable housing will pick up again thanks to GST inputs. He projects that if everything progresses correctly, India could experience double-digit GDP growth by mid-2026.
In conclusion, while US tariffs may present some immediate challenges to specific Indian industries, Dr. Hiranandani believes they also offer a strategic opportunity for India to strengthen its domestic manufacturing base, reduce reliance on external markets, and emerge as a significant global product creator, aligning with the nation's vision of Atmanirbhar Bharat.
