Evidence Quote by P. Chidambaram
“Evidence points out that if you raise tariffs too much it will increase smuggling.”
About This Quote
Source Speech: Economic policy address, India, 2010
High tariffs can unintentionally boost illegal trade by making smuggling more profitable
In simple terms: High tariffs may increase smuggling
Key Takeaway
Balance tariff levels to avoid encouraging illegal trade
Themes
economics
policy
trade
Mood
analytical
concerned
Type
policy
economic
When to use this quote
- government budgeting
- customs enforcement
- international trade negotiations
Key Concepts
tariff theory
informal economy
regulation
Questions to Reflect On
- How can policymakers design tariffs that protect industry without encouraging smuggling?
- What alternative measures can reduce smuggling besides tariffs?
A Different Perspective
Policy may be constrained by political pressures
