![]() ![]() Monopolies tend to be bad for the economy because they prevent diversity in the market and can create high prices for consumers. For example, if the people of a town can only access one clothing store, that means it (the clothing store) acts as a monopoly because the people of the town can't get their clothes from anywhere else. When you monopolise a market, you essentially dominate it. The concentration of economic power in India by these industrial houses comes from the monopolisation of the market. In the 1960s, the Mahalanobis Committee found that the rapidly growing economy was supported by (public-private) partnerships with financial institutions and commercial banks but was more heavily influenced by the large industrial houses. For example, the Tata group is one of the largest multinational companies in India and owns subsidiaries in automobiles, steel, fashion, hotels, and e-commerce. 'Large industrial houses' is the Indian term for business groups that span many industries, usually in related processes. The concentration of economic power in India is caused by the accumulation of resources by large industrial houses following the country’s independence and subsequent vacancies in ownership positions resulting from the exit of the British. Here, we consider this as the infiltration of superpowers to influence other nations, but you may find a majority of articles will focus on market power which is when business corporations overcome competition and dominate a market. Concentration of economic power is the collection of power by one organisation.
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