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Key Points

Former HAL Chairman C.B. Ananthakrishnan remains optimistic about India's ability to overcome new US tariffs. He acknowledges short-term sector impacts but emphasizes India's economic resilience and governance strength. A Jefferies report suggests the tariffs stem from Trump's frustration over being denied India-Pakistan mediation. India maintains its stance against third-party intervention despite economic costs.

Key Points: Former HAL Chief Optimistic on India Economy Despite US Tariffs

  • US imposed 50% tariffs on Indian goods raising trade concerns
  • Former HAL chief confident in India's economic resilience
  • Jefferies report links tariffs to Trump's mediation rejection
  • Agriculture sector remains protected due to farmer livelihoods
2 min read

We will be able to overcome, Former HAL Chairman optimistic of Indian economy despite Tariffs

Former HAL Chairman C.B. Ananthakrishnan expresses confidence in India's economic resilience against 50% US tariffs, citing strong governance and long-term solutions.

"We will be able to overcome that. And I am sure that in the days to come, we will find a solution - C.B. Ananthakrishnan"

New Delhi, August 29

The 50 per cent tariffs imposed by the United States on Indian goods have raised concerns about trade relations between the two countries, but India remains confident of finding a way forward, said C.B. Ananthakrishnan, Former Chairman and Managing Director of Hindustan Aeronautics Limited.

Speaking to ANI, Ananthakrishnan said the immediate effect of the new duties could slow down certain sectors but stressed India's resilience.

"The present situation is that there has been an additional tariff which has been issued, which will for a shorter period it may have an impact. But I am sure that with the sort of governance and with the sort of resiliency the country's economy has got, we will be able to overcome that. And I am sure that in the days to come, we will find a solution and we will be able to sort it out," he said.

The steep 50 per cent tariffs imposed by the United States on Indian goods are largely a result of President Donald Trump's "personal pique" at not being allowed to mediate in the India-Pakistan conflict, according to a recent report by American multinational investment bank and financial services company Jefferies.

The report said the American president had reportedly hoped to intervene following the four-day military conflict between the two countries in May.

It stated "tariffs are primarily the consequence of the American president's "personal pique" that he was not allowed to play a role in seeking to end the long running acrimony between India and Pakistan".

India has consistently maintained that it does not accept third-party intervention in its conflicts with Pakistan.

Jefferies pointed out that this "red line" was upheld despite the heavy economic costs, effectively denying the 47th American president one of his opportunities to strengthen his international standing and potentially seek recognition such as the Nobel Peace Prize.

Another sticking point is agriculture. The report highlighted that no Indian government, including the current one, is willing to open up the agriculture sector to imports because of the severe consequences it would have on millions of people.

Nearly 250 million farmers and related labourers depend on agriculture for their livelihoods, with the sector accounting for nearly 40 per cent of India's workforce, the report noted.

- ANI

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Reader Comments

P
Priya S
It's disappointing that international trade is being used as political leverage. India should stand firm on its sovereignty - no third party mediation in our matters with Pakistan.
M
Michael C
As someone working in exports, the short-term impact is real. But Ananthakrishnan is right - we need to diversify our trade partners and focus on domestic manufacturing.
S
Sneha F
Good that we're protecting our farmers! Agriculture is the backbone of our economy and shouldn't be compromised for trade deals. Millions of livelihoods depend on it. 👨‍🌾
A
Aditya G
While I appreciate the optimism, the government needs to have a concrete plan to support affected industries. Just being confident isn't enough - show us the roadmap!
K
Kavya N
This is the perfect opportunity to boost Make in India and reduce dependency on any single country. Every challenge brings new opportunities! 💪

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