‘US tariffs could appear to be a hurdle, however…’: Investor Vijay Kedia says Trump tariff is not a setback
Investor Vijay Kedia believes the current US tariff hike on Indian items could also be a turning level, not a setback. Reacting to Washington’s transfer to impose 27 per cent “reciprocal tariffs” on Indian imports, Kedia mentioned this might mark “a brand new starting for India.”
“When challenges nook us, transformation begins. The US tariffs could appear to be a hurdle — however we have seen sufficient market cycles to know: this could possibly be India’s defining second,” Kedia wrote on X. He added, “Not simply financial however emotional — a renewed religion in our capability to construct, innovate, and lead. As an investor, I’ve at all times believed in India’s long-term story. This isn’t a setback — it’s the spark of a brand new period. Adversity doesn’t break us. It builds us. The most effective is but to come back.”
Kedia had earlier written, “The US’s present stance could appear robust, but it surely could possibly be a blessing in disguise — driving India towards higher self-reliance and inside power. In adversity, we frequently discover our true path.”
His optimistic outlook comes at the same time as others like Kotak Mutual Fund MD Nilesh Shah sounded a extra cautionary notice on the potential fallout. “President Trump is proving what Sant Tulsidas wrote centuries in the past: ‘Samrath ko nahi dosh gosain’. WTO is supposed for weak nations. Sturdy nations can do what they need,” Shah wrote.
Citing historic parallels, Shah warned that previous mass tariff impositions — in 1828 and 1930 — had preceded main financial downturns. “There’s a excessive probability that the 2025 mass tariff hike will lead to decrease development and better inflation… For rising markets, it is going to be known as stagflation, however for the US, it is going to be known as a tough touchdown.”
India, nonetheless, could also be higher positioned than its Asian friends, he mentioned. “We will convey footwear and clothes enterprise from Asian friends if we get our act collectively. We have now to be proactive about Chinese language dumping. We must always negotiate onerous with China to create a win-win state of affairs relatively than the standard lose-lose.”
The US has introduced a 27 per cent reciprocal tariff on Indian items beginning April 9, citing excessive present duties levied by New Delhi. Over 60 international locations are impacted by the brand new regime. Whereas some key sectors like pharma, vitality, and semiconductors have been exempted, the transfer might hit Indian exporters throughout metal, jewelry, and attire sectors. India is presently analysing the impression by the commerce ministry.
Regardless of issues, analysts and policymakers notice that India’s place stays comparatively sturdy. From 2021 to 2024, the US was India’s largest buying and selling companion, and India maintained a wholesome commerce surplus of over $35 billion in 2023-24.
