CII Chief Mukundan Says India Inc Ready for Any Tariff Scenario, But US Tariffs Cannot Be Permanent

Indian industry is prepared to handle any tariff scenario, but the tariffs imposed by the United States on Indian goods cannot remain a permanent feature of the trade relationship, Confederation of Indian Industry (CII) president Ramakrishnan Mukundan has said.

In an interview, Mukundan called for sustained engagement between the two governments to restore stability in trade with India's largest export market. His remarks come as the US works to pass legislation that would allow President Donald Trump to impose secondary tariffs of up to 100% on countries purchasing oil from Russia — a measure largely aimed at India and China.

The proposed move could add another layer of uncertainty to India's trade with the US, which bought $103.8 billion worth of Indian goods in 2025. Tariffs on Indian exports have fluctuated sharply since Trump's "Liberation Day" announcement in April 2025, climbing to as high as 50% in August 2025 before being reduced 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 peaked at 50%, exporters of gems and jewellery, apparel and footwear were among the worst affected, with many companies sacrificing profits to preserve long-term business relationships. As a temporary response, some firms 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, he noted. India and its industries must build resilience by diversifying both supply chains and export markets, he added.

Internal stability through fiscal prudence and monetary policy is also crucial to absorbing external disruptions, Mukundan 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.

He 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.

Mukundan also pointed to progress in economic formalization, inclusion and digitalization, as well as infrastructure development across roads, rail, ports and airports.

"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.