ADVERTISEMENT

Investors to Lose Hopes in India due to the Domination by Narrow Capitalists
I

Investors are worried that there may not be enough space in the market due to the dominance of narrow capitalists. Mainly because, in most of the sectors, state policy determines the winner.

India waved a green flag to unlock the capital in smaller airports two years ago. However, the plan is not very assuring. It is worrying for investors that privatization of all the six airports on the block went to one bidder. 

The disturbance has hiked as the multimedia reports say that Gautam Adani, Gujarat-based billionaire, early and fervent supporter of PM Modi, may also get the already privatized Mumbai-airport and the new one on its outskirts. 

If we have one tycoon owning several airports, natural monopolies, is not a good news, especially for airlines, businesses operating in the premises, and fliers. There is a broader trend going in the country for the concentration of economic power in the aviation infrastructure. Similarly, in other businesses where the key ingredient is the supplies of government like the telecom spectrum. 

 

In the Current Scenario, Foreign Investors Ardor in India is Unclear

Investors are worried that there may not be enough space in the market due to the dominance of narrow capitalists. They may not be willing to compete since, in most sectors, state policy determines the winner. The business class in India overextended apart from certain exceptions. It is confined in the rubble of assets built on the loans from state-run banks. These directed loans are from pliant money lenders, where a call can decide who gets the credits.

However, it is tough for India to carry on this way. In the post-COVID-19 world, government-owned banks of the country would require about 28 billion USD in external capital for at least two years. It would raise the loss provisions in the rancid loans to 70%, says the Moody’s Investors Service (1). They further added that gaining such capital would also help banks double their credit scores from the previous financial year by 4%.

The capital must come from an organization that can’t keep a lid on its borrowing costs. Hence, there is no question to recover the economy sharply and fueled with credit recovery. It could be why the policymakers are letting tycoons with the healthy financial muscle take what they can.  

The investors got a new ray of hopes when India unveiled a new bankruptcy law in 2016. The investors were expecting an equal chance to take productive assets from weak hands. However, this may not be where the country is heading. The government of India must ensure a competitive economy with state assets. Else, the corporate in India, may start looking like a board of Monopoly. 

+ posts

Rucha Joshi is fueled by her passion for creative writing. She is eager to turn information into action. With her hunger for knowledge, she considers herself a forever student. She's currently working as a content writer and is always interested in a challenge.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

Note: If you buy something via a link on this page, we might earn a small commission on it.

Rucha Joshi
Rucha Joshi
Rucha Joshi is fueled by her passion for creative writing. She is eager to turn information into action. With her hunger for knowledge, she considers herself a forever student. She's currently working as a content writer and is always interested in a challenge.

Leave A Reply

Please enter your comment!
Please enter your name here

related stories

Garima Johar (Team TimesNext) with LOH Pizza Founder - Tej Singh

If You Haven’t Checked Out LOH Pizza, Patiala; You Really Should Now

0
“THERE’S NO BETTER FEELING IN THE WORLD THAN A WARM PIZZA BOX IN YOUR LAP.” - Kevin James. Don't we all love pizza? Well, most of...
Last evening, PUBG Corporation, the gaming corporation that gave the world, the hit arcade game, PUBG, had stated server closure.

Is the ban on arcade games in India going extreme?

0
India has always been the place for many controversies, and one of them is how the government deals with games. In a sense, games...
Fantasy Sports like Dream11 and MPL are booming in India. Even though the game of skill is still in the grey area for Indian regulations.

The Boom of Online Fantasy Sports in India

0
Over the past few years, sports in India have observed tremendous growth in the segment, thanks to Online Fantasy Sports. However, being a cricket...
Globally, the Smart Phone industries are pulling up into India due to the vast potential Market that the Indian Consumers provide to their sales.

PLI Scheme: The Make in India Solution?

0
Since the 2014's victorious election for the BJP, PM Narendra Modi (1) has been trying to implement the Make in India strategy. A Strategy...
The 30% cut applied for in-app purchases, and a virtual monopoly in several verticals by Google, has incensed India's entrepreneurs and app developers.

Paytm Vs. Google Feud: Is it Time for India to Regulate App Stores?

0
The Android Play Store by Google took down the Paytm application on September 18, 2020, on allegations that it promotes games that are against...
The World electric motor company, Tesla, is now finding its way to automate the largest automotive industry in the World, India.

Upgrading Indian Automation: A Tesla 2021 Reality?

0
Tesla is the leading automotive company in the World at the moment. Its meteoric rise is unparalleled. Striking chords with advancing technology and consumer...
Team Gridfree Solar

Gridfree Solar: Paving the way towards a sustainable future

0
As industrialization increasingly depletes the energy resources of the planet, it is the need of the hour to resort to more productive sources of...
The Tata Sons versus Mistry legal parade is unfolding before the Supreme Court. It is one of the most closely-observed corporate battles.

Tatas and Mistrys: The Corporate Battle of the Century

0
In December 2012, the legendary chairman of Tata Sons (1), Ratan Rata, the holding entity that oversees the enormous and sprawling Tata Empire, retired...
ADVERTISEMENT