Modi is repeating the earlier error he made in 2014/15 of raising tariff duties on basic industrial raw materials like steel, Aluminium, cement, textiles which create a high cost domestic economy that simply cannot compete in global/export markets even if otherwise competitive.

The need of the hour is to protect the MSMEs from cheap Chinese imports & not shelter profits for the big tycoons. This protection is best afforded to MSMEs by an adjustment to the exchange rate/price of Dollar that makes imports less attractive & exports more profitable.

The exchange rate adjustment will also benefit the tycoons but in a non-discriminatory manner. Besides, the appreciation of the Dollar against the INR will make the job of containing the fiscal deficit easier, funding it cheaper and step us domestic savings.

Merely raising tariff walls will raise the need 4 a host of follow thru adjustments that include stepping up export subsidies in order to protect exporters, preempt cheap dollars from exporters to meet needs of importers, while domestic savings will shrink raising interest rates.

Whoever is advising Modi on the economy wants a return to the full command & control economy that failed us in the 70s where babus enjoyed unbridled power over our lives - financially & otherwise.

This way forward is ruinous. We know that from experience. Rethink please.