The GDP of the Philippines is 100x larger than its GNP because the economy contains a large number of foreign-owned factories. National Product = total income of the country’s residents over a specific time frame. Let's break down what a few of these things mean: The Act aims to prevent vertical or horizontal agreements, abuse of dominant positions, and combinations such as acquisitions, mergers, amalgamations, and joint ventures that have no potential benefit to consumers or improvements in production and distribution of services. These laws came into effect as part of what is called the Competition Act 2002. In 1964, the Monopoly Enquiry Commission suggested that the monopolisation of the market in India was the result of lax laws and corrupt licensing means.Īntitrust laws (laws aimed at preventing businesses from becoming monopolies) try to regulate businesses in India to ensure a level playing field and effective competition in the market. 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.

Global city economic power index