Silver lining to import substitution

India's flourishing crony capitalism guarantees that, as with Rafale fighters, some favoured tycoon will be licensed to make Tabasco at home

With election approaching, fears are being expressed about a return to the pre-1991 import substitution regime. “We’ll have to start using Capsico if they stop importing Tabasco!” is the lament from Malabar Hill to Alipore, South Extension to Adyar, referring to the cheaper Indian substitute for the tangy imported sauce. The serious threat of going back to autarky is that the long heralded take-off in manufacturing won’t happen. Exports will continue to languish, and the fear of overwhelming imports will mean higher protectionist taxes and more friction with Donald Trump’s US.

We’ve been here before. P V Narasimha Rao’s panicky foodgrains