Answer:
Approach:
- Introduction: Begin by acknowledging the trend of increasing concentration of wealth and economic power in big businesses in India, explaining its significance and introducing its potential impacts.
- Body:
- Discuss the consequences of this trend on economic growth, competition, and democratic institutions.
- Examine the implications of these consequences, especially focusing on the socioeconomic disparities and the potential undermining of democratic values.
- Suggest ways through which the Indian state can strike a balance between promoting business growth and ensuring fair competition and inclusive development.
- Conclusion: Conclude with a reaffirmation of the crucial role of the Indian state in managing this balance.
|
Introduction:
The Indian economy has seen a trend towards the increased concentration of wealth and economic power in a handful of big businesses. This has sparked a wide-ranging debate on its impact on economic growth, competition, and democratic institutions.
Body:

On one hand, these large conglomerates contribute significantly to India’s GDP and employment.
- For instance, the Tata Group alone has over 100 operating companies and provides direct and indirect employment to over a million people.
Further, the concentration of economic power has led to substantial investment in R&D and innovation, providing a boost to the Indian economy.
However, on the other hand, such concentration can stifle competition, create barriers to entry for smaller firms, and potentially lead to monopolistic practices.
- As per Oxfam’s report (2020), India’s richest 1% hold more than four times the wealth held by 953 million people who make up the bottom 70% of the country’s population. This immense wealth disparity raises questions of equitable growth and inclusive development.
Further, this concentration of economic power can potentially impact democratic institutions. There could be a risk of these conglomerates exerting:
- undue influence over political processes,
- policy-making, and regulatory decisions, undermining the democratic ethos of the country.
To strike a balance, the Indian state could:
- Strengthen Competition Policies:
- Ensuring a robust competition policy, and empowering the Competition Commission of India can help keep monopolistic tendencies in check.
- Promote MSMEs:
- Policies to support MSMEs, such as easy access to credit, can ensure they serve as a counterbalance to big businesses.
- Transparency and Accountability:
- Mandating transparency in political contributions can prevent undue influence of big businesses in politics.
- Progressive Taxation:
- Implementing progressive taxation can help redistribute wealth and reduce inequality.
- Enhanced Corporate Governance:
- Strengthening norms related to corporate governance can ensure businesses operate in an ethical and socially responsible manner.
- Inclusive Growth Policies:
- Implementing policies focusing on inclusive growth can help ensure the benefits of economic growth reach all sections of society.
Conclusion:
The Indian state, thus, has a pivotal role to play in maintaining a balance between promoting business growth and ensuring fair competition and inclusive development. A dynamic, robust regulatory framework coupled with inclusive growth policies would go a long way in ensuring this balance.
To get PDF version, Please click on "Print PDF" button.
https://uploads.disquscdn.com/images/8348b37c1638a7ee8b45c8988afe6370f65eea1ad4d6925aeab61459a7f5f1a6.jpg https://uploads.disquscdn.com/images/0fd0588b4252aa91007954f7349712a2560c3b656ad2ed1ef3bd711226f88866.jpg
https://uploads.disquscdn.com/images/f18e9f77dbdb0ae32d653861d6a9e43ea39178d1c268cd8f589b7165a52dad66.jpg https://uploads.disquscdn.com/images/561684788c4dfe1060a973d5526725f70a3f13e66dcea40486d9641f7928e529.jpg
https://uploads.disquscdn.com/images/5bd06ab26d6ec30a21c03036acedfd6dc9473d4e2d69e1f795bd53f83f5a6980.jpg https://uploads.disquscdn.com/images/a8cef6568214103fc75cf3f1ec7c3a22e8c8d9fa52d298af052aada464dfe163.jpg
https://uploads.disquscdn.com/images/290c5b0038f2edabdf3cfb58724ffb5caef6816dd03b467635fb7d2b8a4ae6b5.jpg https://uploads.disquscdn.com/images/863efdf486dd7b464f68106b30566f363b337d5ff66b6b16bed19b46dd4bc088.jpg
https://uploads.disquscdn.com/images/8b2ce9c61014aacd66893b4ba298d14220a1d8411463831ebbfbe62dd1641db7.jpg https://uploads.disquscdn.com/images/ceeda99671ba7481c1978235f41ed8b00bb1bf749322f54e88d3443fbb348b6a.jpg https://uploads.disquscdn.com/images/781a24d08b48ed1c8d66de76d36e892ce26a2bb7a645618706a24ea3f1073278.jpg
https://uploads.disquscdn.com/images/def646a48ffb5d5fa6a7b39b2a5a00ffcb49239613a4376f36d064f5c7acd609.jpg https://uploads.disquscdn.com/images/cfd8c771d9e06bfbb0e4e27ed5b103b7319e2a467920579078bd0952d8c2eccc.jpg https://uploads.disquscdn.com/images/5ace67a735b55eed0e4b6a88559dfbedc96885fcd185fd112cc29eea2f93bf34.jpg
https://uploads.disquscdn.com/images/3f269fb067ca7ef4956df7162cf9a309b92eae656cbbcd945a5331353788c279.jpg https://uploads.disquscdn.com/images/79d8d5f7323b0830231be8e20ecbab47bcef3cb8ac981dd35ac4dd4934e8165f.jpg https://uploads.disquscdn.com/images/8976959cf67e9352fa0a307693cf3d89ccd597a05c961cc1265d655efff3944f.jpg
https://uploads.disquscdn.com/images/4109356a5ec51ef08ee8d10e0d9246ad747893ce002973bd0d9147a8dd5da975.jpg https://uploads.disquscdn.com/images/028f8d2d0b58cdf9aafd0ef4393e5bc208048ccf18978cb8583e8edef52715a6.jpg https://uploads.disquscdn.com/images/12578866a396fd4756f3dc2eccb85eee9ad26c5f2eaecb8199647064bedd0162.jpg
https://uploads.disquscdn.com/images/763ba8768fc23fdad0d559434c4308f4d28d3074982692ecac7dae93a2bbf644.jpg https://uploads.disquscdn.com/images/f236aeb62c23c31b5ee5a32a622118a152575df9cb74822a877848d42f675241.jpg https://uploads.disquscdn.com/images/4852f648961d7e287731323f529d917f8864516a6f42082bd3bfba79e5d86a8b.jpg
https://uploads.disquscdn.com/images/a82ee5bda0141fc965d200ea8c6d6a265c847296cb0cfde6086ddf13a1a37749.jpg https://uploads.disquscdn.com/images/dea78b2de4214e4105ca1845269e9de612a1194c16269f2462dac1ea4ea323ee.jpg https://uploads.disquscdn.com/images/654ef520b2ef47bd5c2c9e50ca6bc1c0b33824c8d5bf04045fabeef24fee5494.jpg
https://uploads.disquscdn.com/images/038013a8b96197544ce7a33bbc174f2c02603f6b3b841e6ded60f66385f0ddb2.jpg https://uploads.disquscdn.com/images/19285d6561291066dec6d7455bcf7fa26def9a8033e113552eba065297d77d82.jpg https://uploads.disquscdn.com/images/2d06e456be4512772e69cc45cfce36908d3f4fc147462187ed731d84543928a7.jpg
https://uploads.disquscdn.com/images/cc7d909f506bc94d2162f3263152fd3577cae27dbb1348b6924bc98063d12d1f.jpg https://uploads.disquscdn.com/images/3aae6a95f479cf80737b49f29c5ea7792e3c1d31da8bcd98006826ca81d44a68.jpg https://uploads.disquscdn.com/images/ce8b79eecaefa8f222db50e684360cf87c31205d87d75bd71f395f23260da694.jpg
https://uploads.disquscdn.com/images/049f892e2bd3ac48d5a13c1a23a3ac83a223c762d47354702f06682d3857d8f1.jpg https://uploads.disquscdn.com/images/cf316535bd222367014c9636e5ef270b0aff72c56c3ca8f010910f8ba7080458.jpg
https://uploads.disquscdn.com/images/617c47dacdf92b3d715d4e00b95a227d8b3236a0f0acf21ed8497b4abeb49e1a.jpg https://uploads.disquscdn.com/images/2d44249f58055484d8931850cc684df1a17c0c0304a3707636356be83e4130b6.jpg https://uploads.disquscdn.com/images/fdde5bc9041a86f512d320801313b17406bbe3ec5073ca093011ab2b1d7383c5.jpg
https://uploads.disquscdn.com/images/293dc5d36e6a74588a4d88e6602887242aebf0e6ea532c70e39eacdcea5994f2.jpg https://uploads.disquscdn.com/images/e33a3d5066daac6722f6629f481794b340422cbdd661d3f18691798758576e18.jpg
https://uploads.disquscdn.com/images/56edc146087416347202a183b18d15a3413b41fd9dde589cd6de9924cd8b1bbe.jpg https://uploads.disquscdn.com/images/da33f23385e508e0f3f3788870c5a644d3bdb220c20ae2af2fb1bd3869cb72ce.jpg https://uploads.disquscdn.com/images/eaa8dd58aa6ddc8a06ca7ced40e3404598c72d951395a3c585e6f990ebd7e232.jpg
Hey
https://uploads.disquscdn.com/images/4324a5c75e6b014291a4818fe6c968a7ab2bd654c3f05ea39ab001f66220f1be.jpg https://uploads.disquscdn.com/images/ba53ecf3602bd2c6da4ddb6b1fa86577d537fc0332840a3082958dddb8c47ec1.jpg https://uploads.disquscdn.com/images/0100feae3e5387294d337becbc8d02d787476979cde6ff28cb03fb7017f4bb62.jpg
https://uploads.disquscdn.com/images/371232cc0fc8d975f43da102d574be430198f467079f85c68a9cb1cb4e4f4682.jpg https://uploads.disquscdn.com/images/9ff7c9c805e0dd8987c043e24e0d391372653ed9ee6eba6b77a0473f8ad5e46d.jpg
https://uploads.disquscdn.com/images/128f2f6ea15b705d1f099acd20722be176563ede8aa7c22edfa0014fd6aae1d2.jpg https://uploads.disquscdn.com/images/047c966f51efb45898cd407027f7236911bacdbeea3612d3beb0772d4fc617ff.jpg https://uploads.disquscdn.com/images/245996a459da8e8ce607e3c4fd572d71ed99162f52952906be10b99d45ca8178.jpg
https://uploads.disquscdn.com/images/305ad03e20b2bd36fae0fad6e686eb40e9682b7fb78a30b910a89c2f90cf6a5b.jpg https://uploads.disquscdn.com/images/bca21ce994b19bf7b9a7019b8498e3151ae7f5b0f1b5219e5c520cf9e59f0982.jpg
https://uploads.disquscdn.com/images/ab293ee2fe8bab4be19127d90bacb067694c8ef9a58f7802032c1cfe3947434c.jpg https://uploads.disquscdn.com/images/8b528b7c3ede7b20d98eef979efa45e99b5fd8ac79f0ac794369a31437a2d32c.jpg
https://uploads.disquscdn.com/images/8987507f525b7046edaa254981b33c9ffb332922979eedbd8b19b30a60978201.jpg https://uploads.disquscdn.com/images/32f3c343a5e244b1d5024e424ddcc2ba2748d1d9c594e3f499664705244570b9.jpg https://uploads.disquscdn.com/images/2cf872ad18d824c648e0da7c22504ab3c14cd4a21d7723f555944144af58a90b.jpg