Contemporarily, one of the toughest problems which
Modi government has encountered is of “crony capitalism”. Crony capitalism
continues to confront the Modi government and has been an uneasy hurdle in the
way of the success of Indian economy.
Today India faces a very deadly and illegitimate combination
of politics combined with business which continues to eat up most of the
progress of Indian economy. This collusion between the politics of the nation
with some big corporates houses of the country is conducive to complete
domination of the whole of Indian market by some old players leading to in-toto
death of entrepreneurship and innovation.
After India got independence, many of the famous
businessmen of that time had previously worked as freedom fighters but on
gaining independence and opening their respective industries, these people
parted away from the government and the government too didn’t feel it requisite
to erect a cozy relationship with them. But soon this layout of the relations
of Government and corporate houses changes its course, leading to complete
overhaul of the government policies. When Rajiv Gandhi came to power in the
year 1984, the relationship between the government and private enterprises made
a transition. The liberalization agenda of Rajiv Gandhi demanded a fillip from
the corporate houses and in order to do that Rajiv Gandhi reduced the distance
between corporate houses and government thereby increasing proximity between
the two leading to crony capitalism.
After the demise of Rajiv Gandhi, though the new
relationship continued but with slower pace and halved interest. But the history
repeated itself again, when UPA-1 rose to power and made a redux of the time of
Rajiv Gandhi, again renovating the relationship between the government and
business houses and this led to the formation of a complete labyrinthine of
crony capitalism and thereby begetting an epoch of depreciation of Indian economy.
The crony capitalism has led to complete monopoly of
only some businesses over the whole of Indian economy. Some big corporate
houses, took cover of whole of the Indian market finally leading to completely
suppression of the new enterprises and thereby becoming the cause of decline of
innovations and new competitors in the Indian market.
Now the Modi government surely needs to take some
stiff steps in order to restrain this crony capitalism.
The first thing that the government needs to do is to
go beyond the famous companies like top 100 etc. in order to promote
competition in the market and the birth of some new companies. If the government
sticks to this principle rather than always choosing the same players, surely
huge changes can be inculcated in the system.
Second thing is to promote FDI in export industries.
This step could lead to entry of some new players in the field and can surely
give rise to a healthy competition putting a full stop to the monopoly of only
a few power corporate houses and giving birth to new blood and technology in
the field.
The third thing is to promote the ease of doing
business. India is currently considered one of the worst place to do business
and this leads to the burial of many companies which have not even been
founded. The red tapes in the procedures to get clearances for various projects,
industries etc. eventually kill the alacrity of the companies to start their
project here, again giving the reins to the previously entrenched companies,
again leading to the transfer of power back to the same hands.
Crony Capitalism has long been a venom for the whole
nation, which has always lead to demise of entrepreneurship and innovation
thereby abating the growth of the Indian economy.
JAI HIND, JAI
BHARAT
JAI MA BHARTI
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