The visible hand of the state, Pg11.

Key Highlights:

• The US, China, and India are implementing industrial policies with comparable core ideas, prioritizing self-sufficiency and resilience over efficiency.
• In the US, the government is intervening through measures like the CHIPS Act ($53 billion for semiconductor manufacturing) and the Inflation Reduction Act (clean energy funding).
• China's industrial policy involves a well-oiled machinery across government levels, with support pegged at 4.4% of GDP by the IMF.
• India's industrial policy combines tariff barriers, non-tariff barriers, and direct subsidies like the Production-Linked Incentive (PLI) scheme.

Detailed Insights:

• The US is shifting from direct subsidies to intervening in company operations, raising questions about decision-making guided by the White House versus shareholders.
• China's industrial policy faces challenges like "Neijuan" (involution), leading to regulations against disorderly low-price competition.
• India's approach involves shielding domestic companies and supporting firms to compete globally, requiring external support for self-reliance (Atmanirbhar).
• Modi's definition of Swadeshi focuses on domestic labor in production, irrespective of the source of investment.
• A strategic vision underpins industrial policy in China, unlike the transactional nature of Trump's policies.
• India focuses on increasing efficiency and competitiveness, rather than prioritizing self-sufficiency and resilience.

Key Concepts Involved:

• Industrial Policy: Government strategies to promote specific sectors or industries.
• Self-sufficiency: The ability of a country to produce goods and services without reliance on imports.
• Resilience: The capacity to recover quickly from difficulties.
• Atmanirbhar: Self-reliance or self-sufficiency, particularly in the context of national economic policy.