Our economic Interests Must Shape Trade Policy

Context: Snapping all commercial ties with china will not achieve much rather a calibrated approach is very much required. 

• The recent deceitful act of china creates a wave for the boycott of Chinese apps, products, and services. It is also in line with Prime Minister Call for self-reliance. 

Requirement of a smart move:  

• Policy Level: we must calculate what we buy from outside. For example, China’s Huawei, a 5G leader suspected of loading machines with spyware on behalf of its deep state, must not escape scrutiny.
• Pinpoint dumping: Chinese costing has always been opaque, so certain use of proxy measure serve our purpose. 
• The benefits we accrue: Without cheap inputs for medicines, automobiles, mobile phones and other gadgets, the cost base of our industrial output could rise. 
• Counter-productive: industries shielded from the foreign competition also tend to turn inefficient.

Way forward: 

• Learning from the success of other economies: policy experiences of East Asia could be a beacon guide.

• Export targets: Tariffs could be tied to export targets that can force Indian firms to perform better.

• Growth of economy: For self- reliance to work, our economy must do well.