Monopolies in various sectors pushing prices higher: Jairam Ramesh

The Congress on Wednesday said growing concentration of economic power is having a negative effect on peoples lives as monopolies in various sectors are pushing prices higherCongress general secretary Jairam Ramesh claimed that profit margins across all sectors have doubled from 18 percent in 2015 to 36 percent in 2021 due to growing market concentrations created by the Modi dispensationHe said a research paper by top economist Dr Viral Acharya has substantiated this concern about higher profit margins due to monopolies in several sectorsEvidence by the exRBI Deputy Governor Acharya shows that Modi governments alleged monopolistic friends are a big cause of price rise in India the Congress leader saidAs the Adani megascam has shown PM Modis suitboot ki sarkaar has systematically helped his cronies build large concentrated monopolies across various sectors since he took office Now we have fresh and credible evidence that these monopolies are driving price rise in the country by misusing their market power to systematically charge 1030 per cent higher prices than their competitors he alleged in a statementAlso Read If oppositions JPC demand is put in the bin sadly bills will be passed in the din says CongressRamesh said this evidence comes to us from the internationally renowned financial economist Acharya who served as deputy governor of the Reserve Bank of India from 2017 to 2019This fresh evidence supports the Congress partys stand that the Modi government by handing out favours to its crony friends is hurting consumers small businesses and even those large businesses trying to compete with these monopolies In return for these favours PM Modi and the BJP are rewarded with funding from electoral bonds he allegedRight through Bharat Jodo Yatra Rahul Gandhi kept drawing attention to growing concentration of economic power in India and its effects on our daily lives Now theres a solid research paper by top economist Dr Viral Acharya substantiating this concern Ramesh also tweetedPM Modis enabling of monopolies is part of his disastrous economic policies which have inflicted a price on Indians such as a badly designed GST skyhigh prices for petrol and gas indiscriminate privatisation of agriculture and PSUs he saidThe Congress supports an economy which benefits all including private enterprise with a fair and level playing field for large and small businesses especially MSMEs that generate the bulk of employment in the economy he noted in the statementThis he said was the demand of the people during the Bharat Jodo Yatra and has gained urgency after the exposure of the Adani megascamThe Congress will continue to raise these issues in national interest in Parliament in the media and in the streets of every village town and city in India he saidThe Congress MP said rising prices are being driven by five major groups including the Adani Group that are building monopolies in 40 sectors including cement chemicals petrol construction telecom and retail trade These groups called the Big 5 now own 18 per cent of all assetsAccording to Dr Acharyas analysis this contributes to price rise in three steps Since 2015 the Big 5 have entered many new sectors by acquiring smaller companies and have also expanded this market share within these sectors the Modi government has favoured Big 5 monopolists by preferentially allocating them projects allowing predatory pricing and shielding them from international competition by raising import tariffs In cases such as Adani we have also seen public sector institutions like SBI and LIC being forced to provide loans and investment to them he saidThis favourable treatment has allowed the Big 5 to charge increasingly higher prices than their competitors he saidAs a result of growing market concentration the average profit margin charged across all goods sectors has nearly doubled from 18 per cent in 2015 to 36 per cent in 2021 These rising prices directly hurt consumers Ramesh also saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever