Closing Doors to Growth

Having the most closed markets in the world is nothing to be proud of, this editorial in an influential Indian business daily maintains. According to a recent World Trade Organization report, less globalized countries saw per capita income growth just 0.9 percent per annum, while those that were highly globalized saw annual incomes grow by 4.3 percent. Therefore, the editorial argues, if India wants to combat poverty and encourage economic growth, it must do away with protectionist policies. Lowering trade barriers may even encourage trade partners like the United States to reciprocally lower tariffs on Indian imports, further boosting the economy. “You cannot expect countries to welcome your software engineers while you block import of their wines,” the editorial asserts. – YaleGlobal