Business Standard

Automotive slump & industrial policy

The sector is needed as a growth engine and a risk of collapse needs to be averted

Automotive slump & industrial policy

Shyam Ponappa
Mention “industrial policy” and there are strong reactions: An angry buzz from free-market enthusiasts, or approval from the diminishing ranks of believers in government intervention. But as economist Dani Rodrik observed over a decade ago, reality has not been kind to either set — neither the belief that the way forward (for developing economies) is through strong government interventions, nor the belief that it is best for the government to stay entirely away from the economy. Although there were successes sometimes with import substitution, planning, and state ownership (a case in point is Indian Space Research Organisation), these practices were
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 31 2019 | 11:43 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to