As Geopolitical Tensions and Tariff Uncertiaties Shake Global Markets, India Must Focus on Its Long-Therm Fundamentals Rather Than Short-Therm Shocks, Said Neelkanth Mishra, Chief Economist at Axis Bank and Member of Member of Member of Membora of Mishra. The Prime Minister’s Economic Advisory Council, During A Fired Chat at The At BT India@100 Summit.
Responding to recent tariffs for US President Donald Trump’s tariffs, aimed at India and other economies, Mishra said the move should be more seen as a Greece for negotiations than a clear strategic change. “The signs are evil, yes, but this is not an attempt to take away India,” he noted. “Even close allies like Taiwan, Japan and Korea are struggling to interpret the American stance.”
He warned that tariffs – an average of 18% – will eventually affect US consumers more than Indian exporters. “The US government can raise $ 500-600 billion through tariffs, but that money will get out of the pockets of US buyers,” Misra said. He also pointed to a rush of insufficient participation and trans-ship, with differences in trade data-especially between China and the United States-revealing how companies evade duties after 2017.
On the domestic front, Misra acknowledged the absence of a very expected boom of private capix, but noted that India’s economic base increased significantly stronger. “The price of India’s capital is now the lowest of its independence. The well-ranked corporation can now borrow 10-year funds at just 7%,” he said, deserving this to sustainable fiscal consolidation and infrastructure improvements.
Rejecting comparisons with China’s rapid development trajectory, Mishra advocated a slower but constant approach in India. “We are not trying to win the race. We are trying to build something that is shock and sustainable,” he said. “It’s like driving at 20 km per hour on a bumpy road – it’s slow, but safe.”
He warned that low -income consumption remains under pressure due to stagnant real salaries and excess labor, but predicts steady growth in the India Service Sector. “From health care and education to global ability centers, our services can boost the next wave of growth. In a world that needs young, qualified talent, India is well positioned to lead,” he concluded.
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