{"id":232299,"date":"2023-03-18T21:33:36","date_gmt":"2023-03-18T16:03:36","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=232299"},"modified":"2023-03-18T21:33:36","modified_gmt":"2023-03-18T16:03:36","slug":"conglomerates-brandless-growth","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/conglomerates-brandless-growth\/","title":{"rendered":"Conglomerates & brandless growth"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cConglomerates & brandless growth<\/strong>\u201d published in Business Standard <\/strong>on\u00a018th<\/sup> March 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Economy<\/strong><\/p>\n

Relevance: <\/strong>Issues with Indian Conglomerates<\/p>\n

News<\/strong>: The article discusses the problem with Indian conglomerates.<\/p>\n

Which companies in India are conglomerates and what are the common things amongst them?<\/strong><\/h2>\n

Companies such as Adani, Ambani, Tata, Birla, and Vedanta are conglomerates in India, i.e., they are large corporations<\/strong>.<\/p>\n

Things which are common amongst them are – a)<\/strong> they are all legacy or family-controlled enterprises, b)<\/strong> these have most of their businesses in areas which are highly regulated by the government, c)<\/strong> none of them owns a truly global Indian brand.<\/p>\n

Since these conglomerates work in areas which are highly regulated by the government, the allegation of cronyism i<\/strong>s often put forward by the opposition.<\/p>\n

What are the arguments against cronyism?<\/strong><\/h2>\n

Areas such as ports, airports, require both government as well as private players to work together for the development.<\/p>\n

Further, it is important for the government to work closely with powerful Indian conglomerates to compete with others across the world<\/strong>, especially to counter China\u2019s Belt and Road Initiative in the nation’s interest.<\/p>\n

Hence, the issue of cronyism or to say the government is supporting just one enterprise (Adani) is baseless. However, the government must provide a level playing field for all<\/strong> in these sectors rather than cooperating with a few.<\/p>\n

Read More: <\/strong>Billionaire Raj: The rise of India’s multi-business conglomerates <\/strong><\/a><\/p>\n

What are the concerns with these conglomerates?<\/strong><\/h2>\n

These conglomerates have not been able to build a global Indian brand<\/strong>. Global brands can be classified into three categories: Country, company and product brands.<\/p>\n

In the first category<\/strong>, India has Yoga, ayurveda, etc. that has built the brand of India globally. In the second category<\/strong>, we have powerful Indian company brands known across the world like Tata, Reliance, etc.<\/p>\n

However, the list in the third category is empty<\/strong> because none of these companies have been able to build a product brand that rules the world.<\/p>\n

India does not have a purely homemade car, a two-wheeler, a software or operating system. Even though there are GI tags for most of the agri products<\/strong>, none of those acts as a brand that represents India globally.<\/p>\n

Almost all the garments produced in our factories and exported are sold under the labels of international store chains.<\/strong> Although India is making a lot of mobile phones for export but none of these carry an Indian brand name.<\/p>\n

The government has pushed for domestic manufacturing, but<\/strong> it is pushing it in the same direction as our software industry, i.e., outsourcing.<\/p>\n

What can be the way ahead?<\/strong><\/h2>\n

The success of Indian conglomerates not only lies in improving the domestic economy but also in making a brand that is recognised globally and represents India.<\/p>\n

Therefore, there is a need to look in that direction by holding necessary discussions with the stakeholders.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cConglomerates & brandless growth\u201d published in Business Standard on\u00a018th March 2023. Syllabus: GS 3 \u2013 Economy Relevance: Issues with Indian Conglomerates News: The article discusses the problem with Indian conglomerates. Which companies in India are conglomerates and what are the common things amongst them? Companies such as Adani,… Continue reading Conglomerates & brandless growth<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-232299","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","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\/232299","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=232299"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/232299\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=232299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=232299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=232299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}