Tag Archives: Business and Economy

Inefficiencies in fragmented markets.

English: Sitabuldi main road as seen from the ...

English: Sitabuldi main road as seen from the flyover. 🙂 (Photo credit: Wikipedia)

I have noticed a few peculiar things about the commercial environment in India. No doubt it is extremely competitive and highly volatile but there is something that I don’t seem to understand.

I am sure you must have seen several places in India where a million people sell just one type of good. What do you think is common between them? Yes of course, the damn goods. And guess what, all those goods are most likely coming from a single place where a thousand people actually manufacture those goods in a very similar fashion using the same technology which is indeed coming from about a hundred people making that same machinery in an exactly similar way. Now the funny part here is that this practice has been going on since several decades now and in most of the cases there has been no up-gradation whatsoever. Continue reading

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Lets see through those Black Markets

English: Black market speculant on graffiti. K...

Black market speculant on graffiti. Kharkov, 2008. (Photo credit: Wikipedia)

I have been wanting to write about the black market since a long time. Its something that India cannot survive without especially when there are services involved which are to be provided by the government. Now in economic terms a black market is a medium to exploit the demand supply mismatch where, obviously, demand exceeds supply. I don’t think I need to write more about what a black market is. We all have benefitted for them sometime or the other. In this blog I am going to give black market a very Indian treatment. Continue reading

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