India's industrial strategy is feeding big business, but not growth

Growing business concentration is helping big business, but not the economy

Luigi Zingales of the Chicago Booth Business School argues that we should support “pro-market” policies that improve the functioning and fairness of markets, and oppose “pro-business” policies that serve special interests, restrict competition, and impose huge costs on taxpayers. The need to promote pro-market rather than pro-business policies goes all the way back to Adam Smith.

 

India has bet not just on detrimental pro-business policies to drive its industrial development, but also on pro-big business policies. India’s industry is becoming increasingly concentrated with the Big Five gaining ground not only at the expense of overall industry, but even at the