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The Nikkei View

India must abandon protectionism to unleash growth

Throwing up barriers to foreign investment won't help boost GDP per capita

Indian Prime Minister Narendra Modi, center, speaks to reporters on the first day of the budget session on Jan. 29. The country raised tariffs on over 50 items for fiscal 2021-22.   © Reuters

India is taking an increasingly protectionist turn, with frequent and broad tariff hikes and discriminatory regulations against foreign-owned companies. Without a change in course, Asia's third-largest economy cannot modernize industry and remove structural obstacles to growth, such as supply limitations and low productivity.

India increased import tariffs on more than 50 items for a third straight year in its 2021-22 budget. The list includes a variety of automobile and electronic parts.

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