India’s recent shift toward tariffs and industrial policy is creating entrenched conglomerates—echoing a pre-liberalisation past
Research shows that a few large firms now dominate output and pricing power across sectors, reducing room for competition and new entrants
This growing reliance on a handful of business groups risks weakening investment, innovation, and consumer choice
While network effects explain some dominance, much of the blame lies in policies that favour scale over dynamism and incumbents over challengers
Global examples show that champions can aid growth—but only when exposed to export markets and competitive pressure, not shielded by protectionism
The solution lies not in targeting big firms, but in changing direction—opening markets, fostering competition, and supporting broad-based enterprise