When it comes to protectionism, the govt is making the same mistake in Solar. First of all, the consumer bears the brunt because imported modules which attract 40%BCD are superior but has such a high hurdle... and domestic mfgers do not have capacity to meet domestic market yet. But, domestic market is mainly driven by govt projects. The cost of higher imported modules or substandard local modules (whose price will be similar to the expensive imported modules once BCD will be levied) is again effecting govt projects mainly and private players. But the MNRE is funding MoF BCDs basically!!
@RSJ Have been following you for quite some time but 'Cost of Protectionism' looks like one of those pieces which have a more complex undertones of language, and I'm afraid I couldn't fully understand the point you were trying to make.
If possible, please keep the threads linguistically simple and conceptually complex. Thanks :)
@pranay "The policymakers should work on frameworks that create the right incentives for shareholders" - I am trying to understand this domain better. While at one point the article says free markets should operate and shareholder wealth maximisation should be the goal, how does this take account of
- Common goods - Forests , Seas, Wildlife etc
Would that then imply a certain Policy framework where-in the govt comes in to regulate enterprises. Does this happen anywhere in the world effectively? Coz it doesnt in India where Industries pollute Rivers, Seas, Lakes, Air etc etc
I suspect that some of the current surge in crude oil owes itself to under-investment in the petro sector because of ESG.
When it comes to protectionism, the govt is making the same mistake in Solar. First of all, the consumer bears the brunt because imported modules which attract 40%BCD are superior but has such a high hurdle... and domestic mfgers do not have capacity to meet domestic market yet. But, domestic market is mainly driven by govt projects. The cost of higher imported modules or substandard local modules (whose price will be similar to the expensive imported modules once BCD will be levied) is again effecting govt projects mainly and private players. But the MNRE is funding MoF BCDs basically!!
@RSJ Have been following you for quite some time but 'Cost of Protectionism' looks like one of those pieces which have a more complex undertones of language, and I'm afraid I couldn't fully understand the point you were trying to make.
If possible, please keep the threads linguistically simple and conceptually complex. Thanks :)
@pranay "The policymakers should work on frameworks that create the right incentives for shareholders" - I am trying to understand this domain better. While at one point the article says free markets should operate and shareholder wealth maximisation should be the goal, how does this take account of
- Common goods - Forests , Seas, Wildlife etc
Would that then imply a certain Policy framework where-in the govt comes in to regulate enterprises. Does this happen anywhere in the world effectively? Coz it doesnt in India where Industries pollute Rivers, Seas, Lakes, Air etc etc