The Union Cabinet has decided on a major new production-linked incentive scheme aimed at reviving and transforming the automotive sector in India. But the scheme fits in with the broader criticism of the government’s recent industrial and trade policy that many economists have been making. Using taxes to provide incentives for the private sector in order to minimise imports is but steps away from the full-fledged license permit Raj. The purpose of industrial and trade policy must be to integrate further with global value chains, not to dissociate from them, argues our
lead editorial.
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India slips on indices of freedom and the government has not even acknowledged there is a problem, writes
Aakar Patel.
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Without convergence in consumption patterns, there will always be opportunities for carbon spillovers. Unless the negative externalities of the consumption of the affluent are recognised and discouraged, with green investments leapfrogging prosperity gaps in poorer geographies, the climate change issue will not be effectively addressed, writes economist
Rathin Roy.
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QUOTE OF THE DAY
“The transition from T+3 to T+2 took place in 2003. There is a need to reduce it further now as there has been significant reforms in the payments and banking system. Investors have the right to receive what they purchase as quickly as possible.”
Chairman of the Securities and Exchange Board of India Ajay Tyagi
 "Illustration")