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The machinery of India’s industrial policy is MIA
With India’s recent ban on the import of personal computers, laptops and other assorted computer peripherals, a pattern is becoming evident. Rising tariffs on a majority of goods over the past few years, the introduction of Production Linked Incentives (PLI), and a drive to build the country’s infrastructure – at times favouring national champion firms – have all made it increasingly clear that the Indian government wants to formulate an industrial policy.
Despite the government’s efforts, however, it is not entirely evident what an industrial policy might entail, how it has worked in previous successful cases, or what its political underpinnings would be.
While there is no universally agreed upon definition, at its core, industrial policy is about facilitating catch-up growth among latecomer countries in a globalised world, thus forcing them to develop an international…
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