The independent EAG met to review the industrial policy and reforms being pursued by the government, especially in the automobile and telecom industries. Furthermore, the efforts of the government to entice FDI in the automobile and telecom sectors in the form of assembly units depended on incentives such as tariffs and subsidies. The auto industry has not been able to scale as the domestic market is too small due to demand being squeezed through protectionist policies. The new mobile phone manufacturing policy is regressive as tariffs are more than 70 per cent on lower-end mobiles and hover around 40 per cent on higher-end phones. The EAG has asked for comprehensive review of the upcoming policies through economic modelling is required before their implementation, to ensure consumer and overall economic welfare.

Source: The Nation August 06, 2021 02:32 UTC