Maharashtra Economic Development Council महाराष्ट्र आर्थिक विकास मंडळ

Reverse protectionist trends

27 JAN,2020 | MEDC

Over the past few years, India is gradually reversing its policy of tariff reduction to one favouring protectionism. This does not bode well for the long-term growth prospects of the economy. Import substitution is alluded to as a priority for the government on the grounds of protecting India’s infant domestic industries. This is precisely the reason we were unable to join a progressive trade grouping like the RCEP. In today’s age of global value chains, increasing tariffs and staying out of international trade agreements willwork against our exporters, depress export potential and hamper growth. Policymakers will need to change track if India is to recover from the slowdown it is experiencing. Conditions should be created that prompt domestic industries across firms to become globally competitive. It is to be hoped that theseprotectionist trendsget reversed in the forthcoming Budget.

*Photo Credit: Google

Comments

Thank You

Your comment has been submitted for approval.
Please note that comments are moderated and are generally published if they are on-topic and not abusive.

Comment