New Delhi: India needs an industrial policy that rewards productivity and performance and does not act as a permanent shelter from competition, chief economic adviser V Anantha Nageswaran said on Wednesday. “If protection is provided, it must come with quid pro quo obligations on the part of industry,” Nageswaran said at a CareEdge ratings event, arguing that support should be temporary. “Protection should not be in perpetuity, not permanent, but in return for productivity and export performance. And it has to be temporary,” he added.Talking about govt stimulus in a broader global macroeconomic context, CEA observed that post-2008 and the Covid stimulus measures encouraged borrowing and speculation and left the world with higher debt, trade uncertainty, and the risk of “financial repression.” “So, it was a medicine given to a problem, to a disease, and it ended up being a catalyst for further aggravating the disease,” he said.
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