India is uniquely positioned to withstand the challenges posed by US President Donald Trump’s tariffs and could even outperform its global peers, thanks to a favourable tariff differential, Sandeep Tandon, Founder and CIO of Quant Capital, told NDTV Profit on Friday.
While markets worldwide react with uncertainty, Tandon sees this as a strategic opportunity rather than a cause for panic. He believes Trump’s tariff moves are a bargaining tactic rather than a long-term economic shift, and India’s resilience, driven by its domestic economy, makes it a relative beneficiary.
“This is the worst-case scenario outcome we have seen. From here, it can only improve,” Tandon said in a conversation with NDTV Profit.
“India behaved quite well as compared to the global market yesterday (Apr. 3). It showcased that India could be a hiding space as compared to the turmoil in the global market. India is a huge, domestically driven economy. So, our impact will be relatively less. Absolutes are important, but relatives are more important. Relative to other markets, we are beneficiaries due to the tariff differential. So, I think it’s a great buying opportunity in a sector that you like rather than getting too nervous about it at this point.”
Tandon mentioned that India has taken proactive steps to counter the tariffs, reinforcing the country’s resilience. The uncertainty brought by the US’ reciprocal tariff, he said, is unlikely to last beyond two quarters.
“This cannot go on for a long time. You have to look at it from Trump’s perspective. He would also like to settle everything in one or two quarters so that the remaining three and a half years will be better for him in terms of managing everything,” he said.
The Quant Capital founder dismissed fears of a prolonged market slump, reiterating that the bull run remains intact, albeit in a more challenging phase. The key, he said, is adjusting expectations.
“The last four years have been extraordinary. The easy phase of the bull run is over. But we are still in a bull run, just in a difficult phase. And to tackle a difficult phase, your strategy has to be different. The biggest risk in India is our own expectation risk.
Once you bring down your expectations, you will find an opportunity and look for a 12-15% opportunity. The problem is that when you have 40%, 50%, or 80% expectations and you are unable to fulfil them, frustration sets in, and they say markets are not performing.”
On the pharma sector, Tandon pointed to India’s critical role in the US supply chain, highlighting its dominance in generic drug exports. His comments come amid Trump’s threat of unprecedented tariffs on pharmaceuticals.
“They will not take anything from China. Is there anywhere else for generics apart from Europe, where they have some formulations? But apart from Europe, nothing is there. So, I think the US is heavily dependent on India as far as generics are concerned,” he said.
According to Tandon, imposing tariffs on Indian pharma imports would only worsen the situation for US citizens.
. Read more on Markets by NDTV Profit.Sandeep Tandon said Trump’s tariff moves are a bargaining tactic rather than a long-term economic shift. Read MoreMarkets, Notifications
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