Nilesh Shah, MD of Kotak Mahindra Asset Management, recently commented on the announcement of United States President Donald Trump of reciprocal rates in India, China and several countries. Shah said Shah said strong nations can do what they want.

He even cited St. Tullesidas, the creator of Ramcharitmanas, to prove his point. “Samarth Ko Nahi Dosh Gosain” means that people in power or those who are strong often do not blame their actions, even if they make mistakes, while the weakest individuals face criticism even by minor actions.

“My two bits in Trump’s rate saga. President Trump is demonstrating what St. Tullesidas wrote centuries ago.” Samarth Ko Nahi Dosh Dosh Gosain “is intended for weak nations. Strong nations can do what they want,” he wrote in a post in X (before Twitter).

Shah mentioned that developed nations can even calculate rates as a deficit with the United States divided by exports to the United States and to leave. “We will see a case study soon to justify this new definition,” he said.

In addition, the market expert also emphasized that the world will respond to US rates through currency weakening, negotiation with the United States under clause 4 of the order to relieve their concerns, contras, and even put pressure on the United States to challenge this order in court.

Impact on India and her colleagues

Arriving in India, he said that the country has been much lower than most of its companions. The United States has collected 27 percent of reciprocal rates in India over 29 percent in Pakistan, 37 percent in Bangladesh, 36 percent in Thailand, 32 percent in Taiwan, 44 percent in Sri Lanka and 44 percent in Myanmar.

“India has been hit inferior to most of her peers. We are up to how we manage the situation. We can contribute the footwear and dress pieces of Asian companions if we gather our event,” he said. He also mentioned that India must be proactive about China that pours products into the Indian market.

“We need to be proactive in terms of Chinese discharge. We should negotiate hard with China to create a gain situation instead of the usual loss situation.”

Impact on US economics and markets

In its publication, Shah predicted that the rise of massive rates by 2025 will not have the desired results for the economy and the United States markets.

He explained that the United States has imposed rates like this in 1828 and 1930, both resulted in recession/great depression. The Kotak Mahindra Asset Management MD said that the fare rise would produce lower growth and greater inflation.

“If the United States markets are corrected, American consumption, which represents the two-thirds of the economy, could be under pressure due to higher inflation and the effect of evaporating wealth. For emerging markets, it will be called stagflation, but for the United States it will be called a hard landing.”