Former DY Governor of RBI Suggests ‘break up 5 big companies to control Inflation in India’

Viral Acharya, Former Deputy Governor of Reserve Bank of India has suggested to break up the five big companies of India. Viral Acharya says that small companies of the country are being harmed by five big companies like Reliance Group, Tata Group, Aditya Birla Group, Gautam Adani Group and Bharti Telecom. He added ‘These companies also have a big hand in increasing inflation in the country, so they should be broken to bring inflation under control.’ Viral Acharya said this in a paper which is to be presented at the Brookings Institute.

According to a Bloomberg report, Acharya, who was the deputy governor of the Reserve Bank of India from 2017 to 2019, said that due to the government's heavy tariffs. Country's big companies get protection and foreign companies are unable to compete with them.

He also said to increase competition in the market and reduce the pricing power. Five big companies of India need to be broken. Acharya says that Indian customers will not get the full benefit of the reduction in the cost of raw materials because five big companies are controlling retail, trade and telecommunication along with manufacturing metal, coke, refined, petroleum products.

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