Market concentration increased across India's key industries in FY24

Analysts attribute the rise in market concentration to the superior profitability of larger firms and a spate of mergers and acquisitions in recent years

Market concentration continued to increase in India’s key industries as top players grabbed a larger share of the business in 2023-24 (FY24) either through organic growth or acquisition.
 

As a result, the Herfindahl-Hirschman Index (HHI), a common measure of market concentration in an industry, reached a new high in FY24 in industries suchas telecom, airlines, cement, steel, and tyres.
 

In a Business Standard analysis, paints was the only industry that reported a decline in theHHI or a rise in competitive intensity due to market share gains by new players such as JSW Paints.

Market concentration in paints