'Opportune time to cut GST': CIO Gurmeet Chadha says India must act as US tariff heat rises

As the US imposes steep reciprocal tariffs on India, market experts are calling for urgent economic measures to shield domestic consumption and attract global capital. Gurmeet Chadha, Chief Investment Officer at wealth management firm Complete Circle, said this is an opportune moment for the government to act.

“Opportune time for govt to cut GST rates to boost domestic consumption,” said Gurmeet Chadha, Chief Investment Officer at wealth management firm Complete Circle, as India braces for the impact of the new US reciprocal tariffs. “Income tax cut with lower GST can insulate us and make India an attractive destination for global capital in bonds as well as equity,” he added.

He was responding to the recent announcement by US President Donald Trump, who unveiled a 27 per cent “discounted reciprocal tariff” on Indian goods. Trump, in a charged speech from the White House, claimed that India imposes 52 per cent levies on American products and said April 2 would be remembered as “Liberation Day” for the US economy.

Complete Circle partner Mandar Silam echoed Chadha's view, writing, “Rising US tariffs force businesses to rethink supply chains. India can be the next big bet if we ease tax burdens. GST & income tax cuts could supercharge domestic demand + foreign capital inflows = Win-Win!”

Meanwhile, Kotak Mutual Fund MD Nilesh Shah weighed in on the broader economic impact. Citing historic parallels, he warned, “The US has imposed mass tariffs like this twice in history: in 1828 and 1930...Both resulted in the recession/Great Depression.” He predicted that the 2025 hike could again lead to “lower growth and higher inflation,” noting that while this may mean stagflation for emerging markets, the US may face a “hard landing.”

Shah also flagged the risk to India’s exports but said the country was relatively better placed. “We can bring footwear and garments business from Asian peers if we get our act together,” he wrote, urging proactive trade policy and firm negotiation with China.

As tariffs take effect, markets reflected the uncertainty. Benchmark indices Sensex and Nifty fell in early trade Thursday, weighed down by IT stocks and global sentiment. However, experts noted that India may still attract global capital—provided it strengthens its internal levers of growth.

“Picture abhi baki hai,” Shah concluded, signalling that India’s response in the coming weeks will define its economic trajectory in this new era of trade disruption.