India Inc is 'prepared for any scenario' on US tariffs, but they can't be permanent: CII chief Mukundan

The move could add another layer of uncertainty to India’s trade with its largest export market, which bought $103.8 billion of Indian goods in 2025.

Mumbai: US tariffs on India cannot remain a permanent feature of trade with its largest export market, the Confederation of Indian Industry (CII) president Ramakrishnan Mukundan said in an interview, calling for sustained engagement between the two governments to restore stability.

His comments come as the US works to pass legislation that would allow President Donald Trump to impose secondary tariffs of up to 100% on countries buying oil from Russia. The measure is largely aimed at India and China.

The move could add another layer of uncertainty to India’s trade with its largest export market, which bought $103.8 billion of Indian goods in 2025. Tariffs on Indian exports to the US have fluctuated sharply since Trump’s “Liberation Day” announcement in April 2025, rising to as high as 50% in August 2025 before being cut to 18% in February 2026.

“We will always be prepared for any scenario,” Mukundan said. “But that cannot be permanent. We have to address these issues in the longer run, and this is part of the ongoing engagement, in which industry is involved, but also I think at a larger level the governments are involved.”

When tariffs rose as high as 50%, exporters of gems and jewellery, apparel and footwear were among the worst hit, with many companies sacrificing profits to preserve long-term business relationships. As a temporary response, some companies found alternative markets or increased sales in the domestic market, Mukundan said.

After more than half a decade of global shocks since the Covid-19 pandemic, disruptions have become a constant, Mukundan said. India and its industries must build resilience by diversifying both supply chains and export markets.

Internal stability through fiscal prudence and monetary policy is also crucial to absorbing external disruptions, he said. India must also forge talent and technology partnerships with other countries to reduce risks.

“Talent can come from anywhere, and we should give access of our talent to as many countries as possible, and the technology also at the same time,” said Mukundan, who is also chief executive officer of Tata Chemicals Ltd.

“What we have to offer to the world and what we can access from the world, depending on similar-minded partnership, is a very critical piece of the puzzle,” he said.

On India’s reliance on China for critical products and technology, Mukundan said the country should look for alternative technologies and geographies wherever possible.

Mukundan also commended the government’s foreign policy and the trade agreements signed over the past year, which he said had helped industry offset some of the global shocks.

“I think we have done a sort of excellent amount of what our EAM calls as multi-alignment. And at the same time, from the commerce and industry side, I think the trade agreements, making sure India is better connected to the world, has been a very big positive,” he said.

He also pointed to progress in economic formalization, inclusion and digitalization.

“A lot of infrastructure build out has happened—road, rail, ports, even airports. I think the whole connectivity piece has improved,” he said.

“I think we are now entering the next phase where a lot more needs to be done in terms of absorbing emerging areas, absorbing technology, creating new sets of skills which are relevant for tomorrow,” he said.

About the Author

Nehal chronicles India’s top conglomerates for Mint. From navigating the complexities of big-bang mergers and large-scale fundraises to decoding high-profile recruitments and seemingly inexplicable corporate pivots, Nehal focuses on unpacking the long-term strategies of the country’s most influential business houses. He aims to provide readers with a clear-eyed view of how these corporate titans shape the broader Indian economy.<br><br>His professional journey began at The Economic Times in 2018, where he spent over five years before joining Mint in 2023. Over his career, he has tracked diverse sectors like automobiles, metals, cement, power, infrastructure, and renewable energy. He also keeps a close watch on the intricacies of corporate finance and corporate governance. This wide-ranging sectoral experience allows him to better understand India’s large conglomerates that sit at the confluence of these vital industries.<br><br>Nehal studied mechanical engineering from the Pune University and graduated with distinction in 2017. Driven by a passion for storytelling, he pivoted to journalism immediately after, attending the Asian College of Journalism in Chennai. While his time in the newsroom has made him a healthy sceptic, his engineering roots keep him perpetually inquisitive about how things work—and why they fail.<br><br>He actively encourages readers to reach out for feedback, collaboration, or news tips. Nehal can be reached via LinkedIn or directly at nehal.chaliawala@livemint.com.