India’s five largest business houses (Top 5 Conglomerates) have immense power. He not only has immense wealth, but also dominates the business from needle to ship. This is the reason why the breaking of big corporate houses is advocated from time to time all over the world. This debate has been started in India by former RBI Deputy Governor Viral Acharya.
These names in top-5 families
According to a report in ET, Acharya feels that India’s five largest corporate houses have the power to control prices from retail to telecom sector. Acharya also feels that these 05 corporate houses are responsible for high inflation in the country. Viral Acharya has named them Big 5, which includes Reliance Group, Tata Group, Aditya Birla Group, Adani Group and Bharti Group. He says that the top 5 corporate houses have progressed at the cost of small and local companies. He does not stop here, rather tells as a solution that these 05 biggest Indian corporate houses need to be broken into smaller units.
Government reduced competition
Acharya has been the Deputy Governor of the Reserve Bank during the year 2017 to 2019. He said that the government has saved these big Indian business houses from the competition of foreign companies by imposing heavy tariffs. Acharya is currently Professor of Economics at the New York University Stern School. According to the news of ET, Acharya has written these things in a paper, which is to be presented at the Brookings Institute Panel on Emerging Markets.
Acharya told – this is the solution
Former central bankers say that such big corporate houses should be divided into smaller units, so that competition increases and the power to control prices is reduced. He says that if this solution does not work, then such obstacles should be put in the way of the corporate world that becoming a conglomerate, that is, a group doing business in different sectors, is no longer attractive, provided that the productivity gains are also not huge.
Inflation did not come down due to this
Acharya argues that Indian consumers have not been able to fully benefit from the reduction in input prices, as the Big 5 companies control the manufacturing of metals, coke, refined petroleum products, etc., as well as retail trade and telecommunications. He says commodity inflation in India remains high, while prices across the world have eased in the last year due to easing of supply constraints.
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