For months now, many Indian economists have been concerned about the excessive influence of the Big Five Indian conglomerates, which is affecting pricing in various sectors of the Indian economy and contributing to more rapid inflation in the country.
Today, India has become one of the fastest growing economies in the world. The country ranks 6th with a nominal GDP of $3.3 trillion and a growth rate of 7%. Despite these strengths, however, the consumer price index at the end of 2022 was 5.72% and the inflation rate dropped to 6.4%. Consequently, experts expect inflation to rise even more by the end of this quarter, driven by the five Indian conglomerates.
The influence of the Big Five Indian companies - Reliance Group, Tata Group, Aditya Birla Group, Adani Group and Bharti Telecom - has grown due to the rapid scaling of these corporations by absorbing local small companies and taking advantage of favorable preferential government tariffs. Tata Group, for example, had a market capitalization of $311 billion at the end of 2022, and Adani Group, India's largest port operator, had more than $200 billion. This situation only spurs inflationary growth and eliminates volatility in the consumer and fuel markets, which could further lead to an increase in the key discount rate.
Thus, there is an urgent need in the state to take control over the activities of India's "national giants. According to experts, this situation leads to serious weakening of competition on the market. That is why, in order to restore macroeconomic equilibrium in the country, the Indian government should take measures to implement an active anti-monopoly policy in order to separate and perhaps even liquidate the conglomerates. Such a decision could be a vital step to save small businesses in India
Today, India has become one of the fastest growing economies in the world. The country ranks 6th with a nominal GDP of $3.3 trillion and a growth rate of 7%. Despite these strengths, however, the consumer price index at the end of 2022 was 5.72% and the inflation rate dropped to 6.4%. Consequently, experts expect inflation to rise even more by the end of this quarter, driven by the five Indian conglomerates.
The influence of the Big Five Indian companies - Reliance Group, Tata Group, Aditya Birla Group, Adani Group and Bharti Telecom - has grown due to the rapid scaling of these corporations by absorbing local small companies and taking advantage of favorable preferential government tariffs. Tata Group, for example, had a market capitalization of $311 billion at the end of 2022, and Adani Group, India's largest port operator, had more than $200 billion. This situation only spurs inflationary growth and eliminates volatility in the consumer and fuel markets, which could further lead to an increase in the key discount rate.
Thus, there is an urgent need in the state to take control over the activities of India's "national giants. According to experts, this situation leads to serious weakening of competition on the market. That is why, in order to restore macroeconomic equilibrium in the country, the Indian government should take measures to implement an active anti-monopoly policy in order to separate and perhaps even liquidate the conglomerates. Such a decision could be a vital step to save small businesses in India