The impact of the current tariff regime on Indian growth will be limited in the short term. Supply chains are sticky and cannot pivot overnight. But India stands to benefit in the long run as multinationals seek to de-risk production away from China. That process, while slow, is structurally in India’s favour.
March-end is always a deadly combination. I’m certain that many offices will be working through the weekends, despite a holiday on Monday. Every department has its task — wrapping up the books, closing accounts, and clearing dues. There’s a palpable buzz in the air as everyone talks about March-end.
Over the years, the government has taken numerous steps to streamline and simplify the tax regime, with the New Tax Bill 2025 being one of the most significant. However, beyond CFOs, the CA, audit, and finance communities have expressed their views on the bill’s definition of an ‘accountant.’
Trump’s tariff policies, intended to reinforce US economic dominance, have instead triggered uncertainty, alienated allies, and encouraged global realignments. Canada and Mexico, key US trading partners, are reassessing their economic dependence on the US. While geography makes trade with the US inevitable, Mexico is increasingly strengthening ties with China, and Canada is preparing countermeasures in response to new tariffs.
Banks and financial institutions are leveraging AI to analyse customers better and assess potential risks. Many mundane processes are already automated. But there are two big questions CXOs are facing now. First, how to extract business value and justify the ROI on AI. The second is how to find skilled people and how to retain them.
Back home, if the Indian government is forced to lower auto tariffs, the domestic industry will face high-quality foreign competition, giving Indian automakers and local units of foreign companies—long shielded by high tariffs—a run for their money. The silver lining here is that Indian consumers may rejoice as they can get a wider choice.
Every company needs a clear vision for job creation over the next five years. India Inc need not look far for inspiration. It can take a cue from Vishal Sikka, who was ousted in a founders' coup from Infosys. Sikka had the foresight to invest in OpenAI in 2015, a decision that is paying rich dividends for Infosys now.
Inflation is very high and staple vegetable prices, which are part of the Indian government’s ‘thalinomics’, first mentioned in an earlier Economic Survey, have shot up significantly. On the other hand, the economy is not in great shape with GDP growth seen way below 7 percent for fiscal 2025 even by the optimistic forecasts. The National Statistics Organisation sees it at 6.4% while RBI predicts 6.6%.
The current economic situation is complex. On one hand, thousands of young people are jobless, while on the other, thousands of jobs remain unfilled due to a lack of skilled workers. Many entrepreneurs are eager to start operations but struggle to access credit. While the macroeconomic environment remains supportive and India's growth story is unfolding positively, challenges such as geopolitical tensions, tariff wars, and fears of an economic slowdown persist.
In my discussions with CFOs, a majority of them said they are looking for two things: Ease of doing business (EODB) and GST simplification. Despite a significant rise in digital and data transparency, CFOs believe that the bureaucracy still does not see them with a proper lens, which needs to change.
We are just 14 days away from the first full-fledged Budget of the Narendra Modi government after coming into power for the third time. The Union Budget may not grant everything that you, me and the businesses desire, but a finance minister can do a lot. Because without Budget allocation none of the initiatives can be taken forward. So, before the halwa is made and Budget documents go for printing, here is what I think Indians need in the digital age while marching towards Viksit Bharat.
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