Best of BS Opinion: The thin line between intervention and interference

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Ever been on a road trip where your friend insists, rather frustratingly, on giving constant directions —“slow down! Take that turn!”— even when you’ve got it under control? Annoying, right? But sometimes, when you’re truly lost, a timely suggestion can be a lifesaver. This backseat driver effect plays out across sectors too. Unchecked interference can stifle progress, but judicious guidance can help steer things back on track. Let’s dive in. 

Consider the aviation industry. The Directorate General of Civil Aviation’s (DGCA) recent demand for airlines to submit ticket-wise fare data from the past two years has raised concerns of excessive regulation in a sector that has thrived on competition. Our first editorial explores that the move, likely a reaction to public outrage over high fares during the Kumbh Mela, makes this intervention feel more like backseat micromanaging than helpful guidance. 

Meanwhile, Indian agriculture faces its own contrarian version of this dilemma. A study in the RBI’s March Bulletin highlights how erratic monsoon patterns are increasingly disrupting crop cycles. Our second editorial highlights that like a driver navigating unpredictable terrain, agriculture needs timely interventions like better drainage, natural farming, and climate-smart technologies — to ensure long-term sustainability. 

The risk of under-stepping is also evident in India’s response to China’s manufacturing dominance. As Akash Prakash points out, with a $100 billion trade deficit, India risks being flooded with Chinese imports, potentially undermining its own manufacturing ambitions. Without strict interventions, India faces the threat of de-industrialisation unless it strengthens its industrial base and implements stronger trade defences. 

In the financial sector, Ashish Gupta notes how India’s derivatives market, the world’s largest with a daily turnover of $6.4 trillion, saw a 35 per cent drop in notional volumes after Sebi introduced measures to curb excessive speculation. While these steps enhance stability, India’s derivatives market remains highly leveraged compared to global peers. Sebi, like a vigilant co-passenger, must maintain a balance — preventing recklessness without stifling legitimate trading opportunities. 

Similarly, The India Industrial Development Report 2024-25, reviewed by Dammu Ravi, stresses that India must boost manufacturing to meet Viksit Bharat 2047 goals. Without decisive action, India’s industrial ambitions risk being stuck in first gear — proof that sometimes, even with a map, a wrong turn can cost valuable time. 

Stay tuned, and remember, whether intervention helps or hinders depends on timing and intent!