TOPIC:Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
5)Discuss how India can use its market power to create rules that will produce home-grown, locally-owned internet economy giants.(250 words)
Why this question
India us a huge marketplace and as the economy grows, it will become even more lucrative. The recent deal between Flipkart and Walmart highlights the significance of Indian market and also points out the inadequacies on part of indian businesses.
The question is related to GS-3 syllabus under the following heading-
Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Key demand of the question
The question wants us to write in detail about the importance of having homegrown internet giants and how India could use its sheer marker power to achieve that.
Discuss- we have to write at length that how can India use its market power to facilitate creation of homegrown internet giants, what are the tools / strategies through which Indian can achieve that.
Structure of the answer
Introduction- Highlight India’s economic potential, human resource availability and market size which make it likely to have homegrown internet giants like facebook, google, amazon etc.
Body- Discuss in points, what strategies and tools could be deployed by India to achieve the same target.
e.g corporate structures which allow promoters with minority stake a proportionately greater say in the decision making, restrictions at foreign e-commerce agents selling at negative margins or involved in deep discounting at the back of the foreign capital, incentivising investment in domestic ventures, protecting internet privacy etc.
Conclusion- mention the importance of home grown internet giants and possibility of achieving the afore discussed goal.