How Business is done in India?

How business is done in India?

Are we economically free after 70 years from our Independence day? If your answer is “yes”, then think again. Here is a view of how business is done in India.

Business across India is divided in five layers:
Politicians who control everything,
the second layer companies (Top 50 Companies in India) who contract for the world,
the third layer companies (Small Scale Industries) who contract for the second layer,
the fourth layer (Shops and Home business) who contract for the third layer and finally,
the fifth layer who are in agriculture, hunting & primitive industries.

First Layer

Politicians:

1. They give major contracts, license to the Second Layer Companies in India
2. They would like to keep everything under bureaucratic control
3. Have major ties with Second Layer Companies, they get money for election from these companies and their Swiss bank accounts would be filled by them.

Politicians:  Manmohan Singh, P. Chidambram, JaiRam RameshComplete list

Second Layer

Top 50 Companies in India:

1. Top 25 Private Business in India
2. Top 25 Public Business in India
3. 10 Million are Directly Employed in these companies (50 * 2 Lakh = 100 Lakhs or 10 million )
3. Contract for USA, Europe and the Rest of the World
4. 30 Million People Supported
5. They also give work & money to the Third Layer Companies (Mostly assembly work)
6. Get contracts, land and other deals from the Government for money & other favors

Second Layer Companies: Reliance, Tata, Bharti, Aditya Birla, TCS, Infosys, Wipro, ICICI Bank, SAIL, ONGC

Third Layer

Small Scale Industries:

1. For Each Second Layer Company, there exist 25 Private & Public Companies
2. 10 Million People Directly Employed (250 * 0.4 Lakh = 100 Lakhs or 10 million )
3. 30 Million People Supported
4. They give work & money to the Fourth Layer (Contracting & Assembling for Second Layer Companies)

Third Layer Companies

Fourth Layer

Shops and Home business:

1. For Each Third Layer Company, 25 Private & Public Companies are supported
2. 10 Million Directly Employed (1000 * 0.1 Lakh = 100 Lakhs or 10 million )
3. 30 Million People Supported (Assembling for Third Layer Companies)

Fourth Layer Companies: Your local neighborhood stores

Fifth Layer

Agriculture, Hunting and Primitive Industries:

1. 300 Million Directly Employed
2. 900 Million Supported
3. Mostly supply local demand at very low prices
4. Most of the money is spent in distribution, taxes and wastage

This would be also true for every other country in the World except for Silicon Valley in USA. This is a bit of problem. Markets should be completely deregulated and free. Only then it would enable for the best products to reach the customers. The government should be only involved in taxes and building public infrastructure of the country (sanitation, health, transport infrastructure).

Caution: This might be all theory

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4 Responses to “How Business is done in India?”

  1. sunil Says:

    Isn’t that how business is done almost everywhere?

  2. Deepak Says:

    Hey
    In India, Doubts Gather Over Rising Giant’s Course
    http://online.wsj.com/article/SB10001424052748703313304576131792120382006.html?mod=WSJINDIA_hpp_MIDDLELSMini
    🙂
    Deepak

  3. How Business is Done in India – II « Love and Fearless Says:

    […] is the sequel to the first blog on “How Business is Done in India?”  https://loveandfearless.wordpress.com/2011/03/26/how-business-is-done-in-india/ […]

  4. Deepak Says:

    Hey

    Who’s killing Iranian nuclear scientists?

    Personal Opinion: Science takes a beating…Not good for the Society…

    🙂
    Deepak

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