source

6 highlights

  • “Do you have frequent power cuts here?” Chippy asked. Since Uttarakhand was carved out of Uttar Pradesh, electricity supply has been pretty reliable.1
  • As the world develops increasing degrees of complexity, only large markets can offer the range of products and services we take for granted in a metropolis.

  • Self-sufficiency is a prescription for little choice, high prices, and poor lives. We’ve seen this movie before, those of us whose lives were governed by the Import-substitution model of the Indian economy.

  • There’s no going back to that time. One wonders, then, what to make of the government’s mantra of Atmanirbharta.

  • In the early decades of independent India, high import barriers and subsidised manufacturing were justified by the ‘Infant Industry’ argument - that colonisation had crippled our ability to compete in global markets, and we needed the umbrella of protection to grow that competence.

  • Today’s political narrative of a resurgent India would not permit the use of words such as ‘infant’ - or even ‘immature’ - to describe our manufacturing sector, but the manner in which we are retreating from free trade shows a diminishing sense of confidence. Rather than administering the hard pills of economic reform, we have reached for the easy nostrums of protectionism.

Footnotes

  1. Is UP’s power supply infrastructure that reliable?