US Tariffs A 'Blessing In Disguise' For India, Says Kotak AMC's Nilesh Shah

Tariffs imposed by the United States on Indian imports have prompted India to accelerate domestic economic reforms, Nilesh Shah, managing director of Kotak Mahindra AMC, said, calling the measures a “blessing in disguise.”

Shah said the tariffs, including the 25% duty on Indian oil imports from Russia, forced India to focus on domestic policy measures designed to boost consumption, generate jobs and encourage investment.

“External pressures have created urgency,” he said on the sidelines of NDTV Profit IGNITE Diwali Edition event in Mumbai on Friday. “The government is now prioritising domestic growth, which should stimulate consumption and investment.”

The US introduced 25% tariffs on Indian goods on Aug. 7, along with similar duties on roughly 70 other countries. Washington later announced plans to raise the tariff to 50% for India’s Russian crude oil imports, providing a 21-day window for negotiation.

Sources told NDTV Profit on Aug. 27 that India hopes Washington will reconsider the 25% tariff on oil imports, which New Delhi has described as “unjustified”.

India has so far refrained from imposing retaliatory tariffs and continues to engage in trade talks with the United States. New Delhi was among the first countries to start discussions with the Trump administration after he assumed office.

US tariffs on Indian goods, initially seen as punitive, are driving accelerated domestic reforms. Prime Minister Narendra Modi, in his Independence Day speech on Aug. 15, had pledged to protect the interests of farmers, fishermen and small businesses amid rising US trade pressure.

Catch all the live updates from the NDTV Profit IGNITE event here.