Challenges of Indian Capitalism in the Emerging Global Order

The text discusses the challenges faced by Indian capitalism in the context of the emerging global order, emphasizing the need for both the state and private capital to collaborate effectively.

Current Economic Climate

• The Indian state is under pressure to adapt to the new global imperialism.
• Despite some improvements in business conditions, private investment in India has been stagnant for nearly a decade.

Key Issues with Indian Capitalism

• Indian capitalism struggles with confidence and competitiveness.
• There is a significant lack of ambition in the financial sector to back globally competitive companies.
• Historical roots of Indian business in trading rather than building world-class firms.
• Dependency on arbitrage and financial maneuvers rather than productive capacity.

Economic and Geopolitical Implications

• The dominance of few conglomerates increases geopolitical vulnerability.
• Indian businesses have failed to challenge monopoly power or oligarchic dominance.
• Outbound investments often act as a hedge against domestic economic challenges.

Conclusion

The text concludes that despite the state's more open stance towards business, Indian capital lacks the risk appetite, ambition for leadership, and innovative spirit necessary for thriving in the new global order. This reflects a broader issue of Indian capital receiving the government and economic environment it deserves due to its own shortcomings.