Maharashtra to unlock investments worth $850 billion under new industrial policy: Anbalagan

The event also witnessed participation by various industrialists who voiced that interference from the government must be minimal to foster greater competitiveness and growth for industries.

“Tariffs should be used not as a weapon, but as an enabler,” said R Dinesh, executive chairman at TVS Supply Chain Solutions. This means tariffs should only be used to safeguard some key strategic sectors such as semiconductors, Dinesh said, adding that “It (tariffs) should be used carefully, maybe to bridge the cost of doing business, for a short period of time.”

The stark disparity in tariffs between various sectors seen in the country currently is detrimental to both growth and competitiveness of industries, said Jamshyd Godrej, managing director of Godrej & Boyce. “When tariffs are low, the disparity doesn’t become a barrier to competitiveness. The disparity (which currently exists) actually doesn’t encourage greater competitiveness and innovation,” he said.

Historically, the government has maintained high tariffs for foreign players in sectors such as automobiles and auto components, agriculture, and metals in order to protect domestic industries and promote growth, he said.

On the topic of Quality Control Orders, Godrej said that the market should decide on quality standards. “The market should decide which is a quality product and which is not, and the government cannot intervene and create a nanny state in everything to do with manufacturing. On one hand we say the market will decide, on the other hand bureaucrats are taking these decisions,” he said.