Express View on India's tariff regime: Costs of a barrier
Erecting high tariff walls allows inefficient players to survive, hurts consumers. Government must review industrial and trade policy
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Erecting high tariff walls allows inefficient players to survive, hurts consumers. Government must review industrial and trade policy
India has been criticised for appearing to be more trade interventionist in recent years. But, countries across the world have returned to some form of industrial policy.
India is using trade restrictions to stall domestic inflation, punish geopolitical rivals, and encourage local industries.
The three shocks to globalisation have squeezed opportunities for China while enlarging them for India. Of course, China can overcome its challenges, just as India can seize the initiative.
Globalisation is heading into a perfect storm – and for China in particular it could not be coming at a worse time.