Restricting trade with China: Duties, non-tariff barriers or devaluation?

Although the Modi government does all the right things on economic policy, it does so in such a low-key manner that it does nothing to change the mood in the country

A few days ago, I was speaking to a very seasoned and senior economic administrator, now retired. The topic of India seeking to conduct a more restrictive import regime aimed at China came up.

The economist to whom I was speaking was of the view that conducting this policy via increases in import duties was the messy way of doing it. It would lead to a huge amount of administrative intervention, which has its own complications and pitfalls.

Instead, he suggested two very neutral ways of achieving the same end. One, he said, was to impose non-tariff barriers. This, he said, was