Economic concentration in India : the role of financial conditions

Dasgupta, Zico and Jayadev, Arjun (2026) Economic concentration in India : the role of financial conditions. Economic & Political Weekly, 61 (15). pp. 43-51. ISSN 0012-9976

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Abstract

This paper examines recent trends in corporate concentration in India’s non-financial sector, with a focus on developments since 2015. Using firm-level data from the CMIE Prowess database we document changes in asset and income distribution across firms. We find that while the overall decline in the public sector’s share of assets and income contributed to a reduction in measured concentration in earlier years, this was accompanied by a steady increase in the share held by the top five private business groups. Through a decomposition exercise, the analysis shows that the increase in income share for these groups was primarily on account of an increase in their share of total assets and total debt. This occurred during a period when many other firms reduced their leverage, particularly after the implementation of the Reserve Bank of India’s Asset Quality Review. The paper provides descriptive evidence on changes in firm-level borrowing patterns and financial indicators, and links them with the differences in financial conditions across the firms.

Item Type:	Article
Authors:	Dasgupta, Zico and Jayadev, Arjun
Document Language:	Language English
Subjects:	Social sciences > Economics > Financial economics > Banks Social sciences > Economics > Production > Economic policy, economic development, economic growth Social sciences > Commerce, communications & transportation
Divisions:	Azim Premji University - Bengaluru > School of Arts and Sciences
Full Text Status:	Restricted
URI:	http://publications.azimpremjiuniversity.edu.in/id/eprint/7736
Publisher URL:	https://doi.org/10.71279/epw.v61i15.49058

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