{"id":227206,"date":"2023-02-18T19:05:12","date_gmt":"2023-02-18T13:35:12","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=227206"},"modified":"2023-02-18T19:05:12","modified_gmt":"2023-02-18T13:35:12","slug":"billionaire-raj-the-rise-of-indias-multi-business-conglomerates","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/billionaire-raj-the-rise-of-indias-multi-business-conglomerates\/","title":{"rendered":"Billionaire Raj: The rise of India’s multi-business conglomerates"},"content":{"rendered":"\n

Source<\/b><\/strong>– The post is based on the article \u201cBillionaire Raj: The rise of India’s multi-business conglomerates\u201d <\/b><\/strong>published in the Business Standard <\/b><\/strong>on 18th February 2023<\/b><\/strong>.<\/p>\n

Syllabus: <\/b><\/strong>GS3- Indian economy<\/p>\n

Relevance:<\/b><\/strong>\u00a0Wealth concentration<\/p>\n

News- <\/b><\/strong>Recently, two announcements of the past few days grabbed attention. One was Tata-owned Air India\u2019s eye-popping order for 470 passenger planes. The second announcement was an investment commitment of about Rs 3.5 trillion by various business houses<\/p>\n

How is the business being dominated by a few large firms in India?<\/b><\/strong><\/h2>\n

Gautam Adani\u2019s companies run some of India\u2019s biggest ports, operate a fifth of its power transmission lines, and accommodate a quarter of its commercial air traffic<\/b><\/strong>.<\/p>\n

Tata group\u2019s chairman recently mentioned investment plans totalling $90 billion for the next five years<\/b><\/strong>.<\/p>\n

Mukesh Ambani has made various pronouncements for investments of about Rs 10 trillion<\/b><\/strong>. His ambitions include producing a\u00a0fifth of the country\u2019s renewable energy.<\/b><\/strong><\/p>\n

The Rs 30-trillion investment <\/b><\/strong>mentioned by just the Big Three equals a tenth of India\u2019s GDP. They account for 20% of the net profits of 3,250 out of India\u2019s listed, non-financial companies.<\/p>\n

What can be concluded by increasing wealth concentrations in the hands of a few conglomerates?<\/b><\/strong><\/h2>\n

The increasing concentration of mega investments is because of their capital-intensive nature and the scale of the country\u2019s ambitions. <\/b><\/strong><\/p>\n

The rise of\u00a0multi-business <\/b><\/strong>conglomerate<\/b><\/strong>s\u00a0stands in contrast to the earlier rise of focused, single-business enterprises<\/b><\/strong>\u00a0in telecom, IT services, pharmaceuticals, and automobiles.<\/p>\n

The experience of South Korea, Japan, and Russia has shown, the conglomerate model <\/b><\/strong>often comes with political\u00a0connections<\/b><\/strong>. But such comparisons can be overblown.<\/p>\n

The six big groups have revenue equal to about 11% of India\u2019s GDP. Samsung alone accounts for more than that in South Korea.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cBillionaire Raj: The rise of India’s multi-business conglomerates\u201d published in the Business Standard on 18th February 2023. Syllabus: GS3- Indian economy Relevance:\u00a0Wealth concentration News- Recently, two announcements of the past few days grabbed attention. One was Tata-owned Air India\u2019s eye-popping order for 470 passenger planes. The second… Continue reading Billionaire Raj: The rise of India’s multi-business conglomerates<\/span><\/a><\/p>\n","protected":false},"author":10309,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[10503,216],"class_list":["post-227206","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/227206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10309"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=227206"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/227206\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=227206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=227206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=227206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}