Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 73,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'catslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 73,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [[maximum depth reached]]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/anatomy-of-indian-capitalism-by-himanshu-4736/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/anatomy-of-indian-capitalism-by-himanshu-4736/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'catslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 74,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'artileslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 74,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [[maximum depth reached]]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/anatomy-of-indian-capitalism-by-himanshu-4736/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/anatomy-of-indian-capitalism-by-himanshu-4736/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'artileslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-trace').style.display = (document.getElementById('cakeErr6805a8d45811d-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr6805a8d45811d-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-code').style.display = (document.getElementById('cakeErr6805a8d45811d-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-context').style.display = (document.getElementById('cakeErr6805a8d45811d-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6805a8d45811d-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr6805a8d45811d-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 4645,
		&#039;title&#039; =&gt; &#039;Anatomy of Indian capitalism by Himanshu&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Live Mint, 7 December, 2010, http://www.livemint.com/2010/12/07205911/Anatomy-of-Indian-capitalism.html&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;anatomy-of-indian-capitalism-by-himanshu-4736&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 4736,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 4645,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Corruption&#039;,
	&#039;metaDesc&#039; =&gt; &#039;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 4645,
	&#039;title&#039; =&gt; &#039;Anatomy of Indian capitalism by Himanshu&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Live Mint, 7 December, 2010, http://www.livemint.com/2010/12/07205911/Anatomy-of-Indian-capitalism.html&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;anatomy-of-indian-capitalism-by-himanshu-4736&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 4736,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 4645
$metaTitle = &#039;LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu&#039;
$metaKeywords = &#039;Corruption&#039;
$metaDesc = &#039;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism...&#039;
$disp = &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/anatomy-of-indian-capitalism-by-himanshu-4736.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu | Im4change.org</title>
    <meta name="description" content="Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Anatomy of Indian capitalism by Himanshu</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div style="text-align: justify"><br /></div><div style="text-align: justify">Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Is this the case in India? Information about the country&rsquo;s billionaires from the Forbes rich list produces some interesting results.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The spike in the number of billionaires appears to be fairly consistent with India&rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &ldquo;rent-thick&rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Clearly, all these would not have been possible without the invisible hand of crony capitalism.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.</em></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$maxBufferLength = (int) 8192
$file = '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php'
$line = (int) 853
$message = 'Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853'
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 48
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Code Context
            $response->getStatusCode(),

            ($reasonPhrase ? ' ' . $reasonPhrase : '')

        ));
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-trace').style.display = (document.getElementById('cakeErr6805a8d45811d-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr6805a8d45811d-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-code').style.display = (document.getElementById('cakeErr6805a8d45811d-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-context').style.display = (document.getElementById('cakeErr6805a8d45811d-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6805a8d45811d-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr6805a8d45811d-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 4645,
		&#039;title&#039; =&gt; &#039;Anatomy of Indian capitalism by Himanshu&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Live Mint, 7 December, 2010, http://www.livemint.com/2010/12/07205911/Anatomy-of-Indian-capitalism.html&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;anatomy-of-indian-capitalism-by-himanshu-4736&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 4736,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 4645,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Corruption&#039;,
	&#039;metaDesc&#039; =&gt; &#039;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 4645,
	&#039;title&#039; =&gt; &#039;Anatomy of Indian capitalism by Himanshu&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Live Mint, 7 December, 2010, http://www.livemint.com/2010/12/07205911/Anatomy-of-Indian-capitalism.html&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;anatomy-of-indian-capitalism-by-himanshu-4736&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 4736,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 4645
$metaTitle = &#039;LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu&#039;
$metaKeywords = &#039;Corruption&#039;
$metaDesc = &#039;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism...&#039;
$disp = &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/anatomy-of-indian-capitalism-by-himanshu-4736.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu | Im4change.org</title>
    <meta name="description" content="Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Anatomy of Indian capitalism by Himanshu</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div style="text-align: justify"><br /></div><div style="text-align: justify">Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Is this the case in India? Information about the country&rsquo;s billionaires from the Forbes rich list produces some interesting results.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The spike in the number of billionaires appears to be fairly consistent with India&rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &ldquo;rent-thick&rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Clearly, all these would not have been possible without the invisible hand of crony capitalism.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.</em></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$reasonPhrase = 'OK'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitStatusLine() - CORE/src/Http/ResponseEmitter.php, line 148
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 54
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Code Context
                    $value

                ), $first);

                $first = false;
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-trace').style.display = (document.getElementById('cakeErr6805a8d45811d-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr6805a8d45811d-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-code').style.display = (document.getElementById('cakeErr6805a8d45811d-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr6805a8d45811d-context').style.display = (document.getElementById('cakeErr6805a8d45811d-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr6805a8d45811d-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr6805a8d45811d-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 4645,
		&#039;title&#039; =&gt; &#039;Anatomy of Indian capitalism by Himanshu&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Live Mint, 7 December, 2010, http://www.livemint.com/2010/12/07205911/Anatomy-of-Indian-capitalism.html&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;anatomy-of-indian-capitalism-by-himanshu-4736&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 4736,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 4645,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Corruption&#039;,
	&#039;metaDesc&#039; =&gt; &#039;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 4645,
	&#039;title&#039; =&gt; &#039;Anatomy of Indian capitalism by Himanshu&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Live Mint, 7 December, 2010, http://www.livemint.com/2010/12/07205911/Anatomy-of-Indian-capitalism.html&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;anatomy-of-indian-capitalism-by-himanshu-4736&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 4736,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 4645
$metaTitle = &#039;LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu&#039;
$metaKeywords = &#039;Corruption&#039;
$metaDesc = &#039;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism...&#039;
$disp = &#039;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Ratan Tata has initiated an interesting debate on the nature of India&amp;rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Is this the case in India? Information about the country&amp;rsquo;s billionaires from the Forbes rich list produces some interesting results.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &amp;mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The spike in the number of billionaires appears to be fairly consistent with India&amp;rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &amp;ldquo;rent-thick&amp;rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;Clearly, all these would not have been possible without the invisible hand of crony capitalism.&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;br /&gt;&lt;/div&gt;&lt;div style=&quot;text-align: justify&quot;&gt;&lt;em&gt;Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.&lt;/em&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/anatomy-of-indian-capitalism-by-himanshu-4736.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu | Im4change.org</title>
    <meta name="description" content="Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Anatomy of Indian capitalism by Himanshu</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div style="text-align: justify"><br /></div><div style="text-align: justify">Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Is this the case in India? Information about the country&rsquo;s billionaires from the Forbes rich list produces some interesting results.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The spike in the number of billionaires appears to be fairly consistent with India&rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &ldquo;rent-thick&rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Clearly, all these would not have been possible without the invisible hand of crony capitalism.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.</em></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$cookies = []
$values = [
	(int) 0 => 'text/html; charset=UTF-8'
]
$name = 'Content-Type'
$first = true
$value = 'text/html; charset=UTF-8'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitHeaders() - CORE/src/Http/ResponseEmitter.php, line 181
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 55
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

<head>

    <link rel="canonical" href="<?php echo Configure::read('SITE_URL'); ?><?php echo $urlPrefix;?><?php echo $article_current->category->slug; ?>/<?php echo $article_current->seo_url; ?>.html"/>

    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>

$viewFile = '/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp'
$dataForView = [
	'article_current' => object(App\Model\Entity\Article) {

		'id' => (int) 4645,
		'title' => 'Anatomy of Indian capitalism by Himanshu',
		'subheading' => '',
		'description' => '<div style="text-align: justify"><br /></div><div style="text-align: justify">Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Is this the case in India? Information about the country&rsquo;s billionaires from the Forbes rich list produces some interesting results.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The spike in the number of billionaires appears to be fairly consistent with India&rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &ldquo;rent-thick&rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Clearly, all these would not have been possible without the invisible hand of crony capitalism.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.</em></div>',
		'credit_writer' => 'Live Mint, 7 December, 2010, http://www.livemint.com/2010/12/07205911/Anatomy-of-Indian-capitalism.html',
		'article_img' => '',
		'article_img_thumb' => '',
		'status' => (int) 1,
		'show_on_home' => (int) 1,
		'lang' => 'EN',
		'category_id' => (int) 16,
		'tag_keyword' => '',
		'seo_url' => 'anatomy-of-indian-capitalism-by-himanshu-4736',
		'meta_title' => null,
		'meta_keywords' => null,
		'meta_description' => null,
		'noindex' => (int) 0,
		'publish_date' => object(Cake\I18n\FrozenDate) {},
		'most_visit_section_id' => null,
		'article_big_img' => null,
		'liveid' => (int) 4736,
		'created' => object(Cake\I18n\FrozenTime) {},
		'modified' => object(Cake\I18n\FrozenTime) {},
		'edate' => '',
		'tags' => [
			[maximum depth reached]
		],
		'category' => object(App\Model\Entity\Category) {},
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[hasErrors]' => false,
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'Articles'
	
	},
	'articleid' => (int) 4645,
	'metaTitle' => 'LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu',
	'metaKeywords' => 'Corruption',
	'metaDesc' => 'Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism...',
	'disp' => '<div style="text-align: justify"><br /></div><div style="text-align: justify">Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Is this the case in India? Information about the country&rsquo;s billionaires from the Forbes rich list produces some interesting results.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The spike in the number of billionaires appears to be fairly consistent with India&rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &ldquo;rent-thick&rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Clearly, all these would not have been possible without the invisible hand of crony capitalism.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.</em></div>',
	'lang' => 'English',
	'SITE_URL' => 'https://im4change.in/',
	'site_title' => 'im4change',
	'adminprix' => 'admin'
]
$article_current = object(App\Model\Entity\Article) {

	'id' => (int) 4645,
	'title' => 'Anatomy of Indian capitalism by Himanshu',
	'subheading' => '',
	'description' => '<div style="text-align: justify"><br /></div><div style="text-align: justify">Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Is this the case in India? Information about the country&rsquo;s billionaires from the Forbes rich list produces some interesting results.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The spike in the number of billionaires appears to be fairly consistent with India&rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &ldquo;rent-thick&rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Clearly, all these would not have been possible without the invisible hand of crony capitalism.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.</em></div>',
	'credit_writer' => 'Live Mint, 7 December, 2010, http://www.livemint.com/2010/12/07205911/Anatomy-of-Indian-capitalism.html',
	'article_img' => '',
	'article_img_thumb' => '',
	'status' => (int) 1,
	'show_on_home' => (int) 1,
	'lang' => 'EN',
	'category_id' => (int) 16,
	'tag_keyword' => '',
	'seo_url' => 'anatomy-of-indian-capitalism-by-himanshu-4736',
	'meta_title' => null,
	'meta_keywords' => null,
	'meta_description' => null,
	'noindex' => (int) 0,
	'publish_date' => object(Cake\I18n\FrozenDate) {},
	'most_visit_section_id' => null,
	'article_big_img' => null,
	'liveid' => (int) 4736,
	'created' => object(Cake\I18n\FrozenTime) {},
	'modified' => object(Cake\I18n\FrozenTime) {},
	'edate' => '',
	'tags' => [
		(int) 0 => object(Cake\ORM\Entity) {}
	],
	'category' => object(App\Model\Entity\Category) {},
	'[new]' => false,
	'[accessible]' => [
		'*' => true,
		'id' => false
	],
	'[dirty]' => [],
	'[original]' => [],
	'[virtual]' => [],
	'[hasErrors]' => false,
	'[errors]' => [],
	'[invalid]' => [],
	'[repository]' => 'Articles'

}
$articleid = (int) 4645
$metaTitle = 'LATEST NEWS UPDATES | Anatomy of Indian capitalism by Himanshu'
$metaKeywords = 'Corruption'
$metaDesc = 'Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism...'
$disp = '<div style="text-align: justify"><br /></div><div style="text-align: justify">Ratan Tata has initiated an interesting debate on the nature of India&rsquo;s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Is this the case in India? Information about the country&rsquo;s billionaires from the Forbes rich list produces some interesting results.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion &mdash;roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The spike in the number of billionaires appears to be fairly consistent with India&rsquo;s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the &ldquo;rent-thick&rdquo; sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Clearly, all these would not have been possible without the invisible hand of crony capitalism.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth?</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.</em></div>'
$lang = 'English'
$SITE_URL = 'https://im4change.in/'
$site_title = 'im4change'
$adminprix = 'admin'

include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51

Anatomy of Indian capitalism by Himanshu

Ratan Tata has initiated an interesting debate on the nature of India’s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus. Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits, licences, land, contracts, tax breaks and so on. Is this the case in India? Information about the country’s billionaires from the Forbes rich list produces some interesting results. There are now 69 billionaires in India, up from 49 in 2009 and 13 in 2004. Of these, Lakshmi Mittal, Anil Agarwal and Micky Jagtiani are non-resident Indians. The net wealth of the rest is $244.6 billion —roughly one-fourth of the national gross domestic product (GDP). Until 1998, billionaires in the country accounted for less than 1% of GDP; this remained less than 4% until 2005, but then shot up exponentially to at least 27% in 2008. The global slowdown took away some of this wealth, but now it is almost back to the 2008 levels. The real growth in the billionaire club, both in numbers as well as wealth has happened after 2004, when the United Progressive Alliance (UPA) government took over. The spike in the number of billionaires appears to be fairly consistent with India’s larger growth story in the last decade, and is a reflection of the entrepreneurial opportunity economic reforms were meant to unleash. But the partial dismantling of the licence-permit raj would have implied that the new entrepreneurs would largely be from sectors that do not rely on permits to create wealth. Moreover, with services now accounting for at least 50% of GDP, more entrepreneurs would have taken advantage of the spurt in opportunities. Neither of these is borne out by an analysis of the Forbes rankings. For the purpose of simplification, I have divided the sources of growth into two categories. The first comprises the “rent-thick” sectors that essentially rely on government permits and contracts for public infrastructure. These include ones that are dependent on mining, metals, constructions, land, real estate and so on. Telecom too, since spectrum is also a natural resource distributed by the government. The second set consists of knowledge-based industries that rely on research and development, primarily in services but also in manufacturing. The information technology (IT) and pharmaceutical sectors would ideally belong to this category. Of these two groups, the rent-thick sectors would essentially benefit from their cosy relationship with the political class. In 2004, of the 13 billionaires, two created their wealth in pharmaceuticals and two in IT; the remaining made their fortunes in rent-thick sectors. In 2010, out of 69 billionaires, 11 created their wealth in pharmaceuticals and six in IT. In comparison, 18 billionaires made their fortunes in construction and real estate, 15 of them in real estate alone; seven made their fortunes in commodities (metals and oil), and two in telecom. That makes 27 billionaires in rent-thick sectors. The total wealth of the knowledge-based sectors (IT and pharmaceuticals) is $55 billion, against $132 billion in the rent-thick sectors. Services account for only 20% of the total wealth of the 66 resident Indian billionaires. How do they compare internationally? Net wealth of the 100 richest Americans is $836 billion; that of 100 richest Indians is $300 billion. That is, the richest Americans are only three times richer than their Indian counterparts. There are eight Indians among the top 100 billionaires of the world, with none from China. Of the top 20 billionaires in the US, eight are from the IT sector, three from finance, five from retail and one from the media. Of the remaining three, two are from engineering and only one from real estate. In other words, one billionaire out of 20 is from a rent-thick sector. Among the top 20 in India, nine are from such sectors. All 15 real estate billionaires in India joined the billionaire club between 2005 and 2010. Incidentally, they have also seen the fastest rate of wealth growth. On the other hand, IT sector billionaires have among the lowest rates of wealth increase. Unfortunately, the growth of the billionaire club in India does not mean much for the other billion. A large number of Indians still consume less than Rs. 50 a day, and the country is slipping on global rankings in many measures of human development. Our rankings on food, nutrition, gender and poverty issues in the last decade have either stagnated or worsened. India is not only home to the largest number of billionaires outside the US. It is also home to large numbers of poor, of hungry and malnourished, of child labourers, of people defecating in the open, of those without access to safe drinking water, of illiterates and so on. Clearly, all these would not have been possible without the invisible hand of crony capitalism. After all this, did you really think that the reforms were meant to remove the licence-permitraj? Or that the government is seriously committed to inclusive growth? Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at Centre de Sciences Humaines, New Delhi.