Seven, the government should not interfere with market prices. Companies in distress will lobby for government support. Big companies will lobby more effectively than small companies. It is particularly important for the government to stay focused on systemic issues, and not implement policies that help one group but could hurt another. The pricing of commodities like steel, which are finished products for some but raw materials for others, should not be interfered with through tariffs or other means. Government interference would normally lead to policies in favour of large vocal firms and against small and more numerous companies.

The writer is senior fellow at the National Institute of Public Finance and Policy, Delhi

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