This editorial is about the viability of free trade in today’s world?
According to author, free trade has been propagated by the followers of Adam Smith who believed that the developing countries are in the need of the products generated by the developed countries and therefore there should be open trade. According to the author open trade has helped only the developed countries and specifically the corporate sector of the society who were indulged in the production of goods.
Why is it bad for India?
It is bad for India as though the free trade has helped India to clock higher growth rates but the economy has failed in generating employment for the people. therefore there is a need 2 change the way free trade works.
Eg of China?
Author by taking the example of China explain How the telecommunication sector of China has strengthened itself. On the other hand India signed the Information Technology Agreement of WTO in 1996 and reduced import duties on IT-related manufactured products to zero. China withheld for some time until its electronic sector was stronger. Now the U.S. and Europe are trying to prevent China’s telecom and electronic goods in their markets.
Now the time has come that India should try to generate employment long with growth. Dovetailing both of them will be possible only if India will tread the path of partial protectionism.