Fix a sunset date

Open-ended tariff protection will affect competitiveness

The government has been increasing import tariffs and other barriers in recent years to protect Indian industry. The idea is that higher prices of imported goods would push Indian consumers to buy domestic products, which will increase output and employment. This would also incentivise foreign producers to shift production to India. However, this is not exactly how things work in the real world. Higher tariffs and other trade barriers tend to increase costs and affect the overall competitiveness of the economy. In this context, the government is reportedly planning to introduce a sunset date for tariff protection in various industries.