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

India’s Industry Seeks Predictable Trade Terms as US Tariff Risk Grows

Theindiapostdaily.com – India’s business community is preparing for possible changes in US trade policy, but it does not view elevated tariffs as a lasting foundation for economic relations between the two countries. Ramakrishnan Mukundan, president of the Confederation of Indian Industry, has stressed the need for continued discussions between New Delhi and Washington to bring greater certainty to trade with India’s biggest export destination.

The concern has intensified as the United States considers legislation that could give President Donald Trump authority to impose secondary tariffs of as much as 100% on countries that purchase oil from Russia. The proposal is principally directed at India and China, placing both countries at the centre of an increasingly sensitive intersection of trade, energy policy and geopolitics.

Businesses Plan for Multiple Outcomes

Mukundan said Indian companies are ready to respond to a range of tariff-related outcomes. That readiness matters because exporters, manufacturers and firms linked to international supply chains must make decisions well before a policy change is formally implemented. Companies may need to assess customer demand, pricing, sourcing arrangements and the ability to remain competitive if additional duties raise the cost of Indian goods in the US market.

Preparedness, however, is different from accepting a new trade barrier as permanent. Mukundan’s position reflects the wider importance of stability in commercial planning. Trade relationships work best when businesses can assess the rules they will face over time, rather than repeatedly adjusting to sudden shifts in tariff policy.

For Indian exporters, access to the United States carries particular weight because it is the country’s largest export market. Any prolonged increase in duties could affect the economics of selling goods there, especially where buyers have alternative suppliers or where higher import costs are passed through the supply chain.

Why Secondary Tariffs Matter

The proposed US measure goes beyond ordinary tariffs applied directly to a product category or a bilateral trade dispute. Secondary tariffs would target countries on the basis of their purchases of Russian oil. In practical terms, this would connect energy-import decisions with the treatment of goods entering the US market.

A tariff of up to 100% would represent a substantial potential obstacle for trade. Even where no such duty has yet been applied, the prospect of one can create uncertainty for businesses that rely on long-term contracts, production schedules and overseas customers. Companies may need to consider how a sharp rise in import costs could influence orders, margins and commercial relationships.

The issue also demonstrates how trade policy can be shaped by broader diplomatic objectives. A business transaction that appears separate from manufacturing or exports can become relevant when governments use economic measures to pursue foreign-policy goals. That overlap makes dialogue between governments especially important, since companies can prepare operationally but cannot resolve policy differences on their own.

Engagement Remains Central

Mukundan has called for sustained engagement by the Indian and US governments. The objective is not simply to manage one immediate tariff threat, but to restore a more dependable framework for trade between two major economies.

Regular communication can help clarify intentions, identify areas of concern and reduce the chance that commercial ties become defined by uncertainty. For businesses, clarity on tariffs and market access supports more informed decisions about investment, capacity and export strategy. For policymakers, it can provide space to address difficult issues before they produce deeper disruption.

India Inc’s stance combines caution with confidence. Companies are not treating the tariff discussion as a distant political matter; they are preparing for scenarios that could affect a key overseas market. At the same time, industry leaders are making the case that punitive duties should not become an enduring feature of India-US economic ties.

The immediate focus will remain on the direction of US legislation and the policy choices that follow. If the proposed authority advances, its effect on India will depend on how it is used and on the broader course of engagement between the two governments. Until then, Indian businesses face a familiar challenge: staying flexible enough to manage risk while continuing to pursue opportunities in an essential export market.

That balance will be critical. Trade can continue amid disagreement, but durable commercial growth is easier to sustain when businesses are able to plan with confidence. India’s industry leaders are therefore urging a path that recognizes the seriousness of the tariff risk while keeping open the possibility of a more stable and constructive trade relationship with the United States.