Protection for the 1%.

"With a $3.2 trillion economy, India aims to achieve a $5 trillion economy within this decade," wrote Naveen Jindal, Chairman of Jindal Steel and Power Ltd and a former member of Parliament. India's GDP was $3.173 trillion at the end of 2021, World Bank. To achieve a $5 trillion economy we need to increase our ease of doing business while lowering the cost of doing business, upskill our workforce and increase productivity. "Manufacturing productivity in Indonesia is twice India's, while in China and South Korea it is four times higher, though they have costlier labor." "Last but not the least, Indian enterprise should be given support and encouragement to expand their operations on a global scale here in India." You cannot have "global scale" only within India. Does Mr Jindal want more protection from competition? In Budget 2020 customs duty was hiked on hundreds of imports. "Consumers can expect to pay more for imported food and grocery items, shoes, ceiling fans, wooden furniture, kitchenware, appliances, hairdryers, shelled walnuts and other items with the budget raising basic customs duties to as much as 100% on some of them to encourage local producers." ET. "As many as 350 customs duty exemptions have been withdrawn in the Budget 2022-23 to boost domestic manufacturing. A comprehensive review of customs duty exemption on capital goods and project imports undertaken and more than 40 customs exemptions to be gradually phased out," in this year's Budget. ET. Protected from competition domestic industries can sell low grade products at high prices to Indian citizens. Indians have shown their contempt with their wallets. Imports from China have increased by 34.5% compared to last year to $57.51 billion while exports to China have fallen to a pathetic $9.57 billion. "The trade deficit at the half-year mark stood at USD 47.94 billion." ET. In 2021, India imported $97.52 billion from China and exported $28.14 billion. Trade deficit was $69.38 billion. "India's import tariffs for the electronics sector are higher compared to countries like China and Vietnam that is negating the support provided through PLI schemes and is adversely impacting competitiveness a report by ICEA and IKDHVAJ Advisers LLP said." ET. "Whereas Indian leaders routinely express regret at having signed free trade agreements (FTAs) even with countries accounting for minuscule proportion of the country's trade, tiny Vietnam has boldly embraced such economic giants as China and the European Union in FTAs," wrote Prof Arvind Panagariya & Deepak Mishra. "Its electronic goods exports stood at $122 billion in 2020 against India's $12.8 billion." "But what good is 100% indigenisation if it makes the smartphone so costly that only a few captive domestic consumers with sufficient income to buy it?" asked Prof Panagariya. "The reasoning reveals the folly of policies such as India's phased manufacturing program,  tried even in the pre-reform era with disastrous consequences." The result is that "The top one percent of the population in India owns more than one-fifth of the total national income in 2021, while the bottom half earns just 13.1 percent, said the World Inequality Report." BS. The 1% want protection. To stay there.