Why alarmists must not derail policy direction if they want a better India

Governments in almost all market economy countries intervene to a greater or a smaller degree in their industries. India, finally, might be on the same path

India’s Budget 2018, which raised customs duties on many imported manufactures, finally suggests that the government recognises the need for (a) an industrial policy; and (b) a trade policy that complements the first. However, mainstream economists/journalists are a a-flutter as they believe India is abandoning economic reforms (Panagariya, 12 February 2018, “Return of protectionism”). This is strange, to say the least.

Governments in almost all market economy countries intervene to a greater or a smaller degree in their industries. The US government intervenes in industry through anti trust laws, industrial standards, pollution regulations, and labor laws. However, no one would contend