Context: Recently, The government decided to bring a sunset clause on import tariffs and other barriers in recent years to protect domestic industries.
Rationale for increasing tariffs
Issues with increasing tariffs and import barriers:
Biggest policy failing in India with respect to exports: has been inability to take advantage of its labour force to increase exports.( India’s low-skill exports are about $60 billion less annually than they should be).
Advantages of introducing a sunset date for tariff protection
Conclusion: Policy makers should put an end date to tariff protection for the overall benefit of the economy.