India’s future economy
There is much angst among policy-makers over the failure of India’s manufacturing story. The Atmanirbhar Bharat initiative is indirect admission of this, being recognition that the country is not capable of developing its manufacturing sector without trade protection and tariff walls. Once you head in this direction, business lobbies will influence policy towards ever more protection. This is already happening, with companies under the production-linked incentive programme asking for moving target goalposts, and with more sectors being added to the protection programme.
A second push
From an economic standpoint, the success of the Modi govt’s recent policy and legislative action would depend more on interlocking process changes than on one-time announcements, writes T N Ninan. After seven long months, the news cycle has at last turned positive. The daily tally on Covid-19 infections has started declining, with a sharper fall in the total number of active cases. The daily death toll too has shown a dip. This change of trend on the pandemic has meant that the drastic, overnight shutdown that set off massive economic disruption and much human suffering is getting ever more limited in scope. More people are up and about. Economic activity is recovering in segments, some in comparison with the previous month or quarter and a few even in comparison with a year earlier. The stock market is riding a buoyancy and liquidity wave. The Sensex is still below its previous high point, but not by much.