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Indian development - Assignment Example

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Some example of these groups was Tata, Birla and Reliance Group. Other groups included Bajaj, MA Chidambaram, Modi, Bangor, ACC, Shriram, and Walchand. In addition to these…
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Download file to see previous pages The business groups had rankings on top twenty frameworks and each group was competing for such rankings.
The large business groups were a threat to the Indian government as they were fiercely competitive to accumulate the as large amount as possible to control the economic power of India. The government thus focused on analyzing the effects of the concentration of private wealth on economic development in India. The Indian government therefore tried to operate the economic policies framework that had aimed at curbing the tendency of these large business groups to concentrate economic power. The growth of this group was perceived as analogous to the wealth accumulation and concentration, making these dominant business groups to be the prominent entities for these restrictive policies designed by the government.
Therefore, the government ushered in a number of restrictive policies. In 1951, the government introduced the Industries (Development and Regulation). Subsequently, the government brought the Monopolies and Restrictive Trade Practices (MRTP) Act in 1969. The policies projected at pegging obstacles and barriers to the expansion and growth of such dominant business groupings. However, the Act never played any outstanding role in towards meeting its objectives. These groups persisted and continued to accumulate as much wealth and economic power as ever before culminating in the repeal of such acts in 1991.
The policy intervention driven by the Acts seemed less productive in breaking up the concentration of economic power in India as compared to the economic liberalization and expanded competition. These reformations became evident in 1990s following the realization of looming weak economic performance in India with the existence of such Acts. These dominant business groups enormously expanded between 1951 and 1969 with the growth being halted between 1970 and 1990 with 1991 seeing a dwindling growth of these business groups.
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