Power, Prestige and Politics : How India's Elite Shape Policy and Society

he theory of the leisure class by Thorstein Veblen explains how, through conspicuous and incessant consumption, members of the wealthy social class display their opulence. The leisure class has the time and wealth to showcase their social status, differentiating themselves from the working class who need to work to survive.

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 The leisure class has the time and wealth to showcase their social status, differentiating themselves from the working class who need to work to survive.

India has a long history of the leisure class being counterproductive for its economy, as this phenomenon was prevalent in the Ancient Kingdoms. The Mughals were known for their incessant consumption, and a striking example of their massive spending on architecture is the Taj Mahal, built with the collection of taxes from their subjects.​

With their money, the leisure class has the ability to exert dominance in the political sphere as well. The Ambani family, spearheaded by Mukesh Ambani, is particularly known for discreetly influencing the political affairs of the nation. This was evident during the rollout of the Jio telecom services. Initially, Reliance Jio offered free trials of data services and packages for 3 months. The Telecom Regulatory Authority of India (TRAI) passed a series of regulations and these trials were deemed anti-competitive as they favoured the entrant Reliance Jio at the cost of existing companies (Reuters, 2019). Jio has now completely disrupted the telecom industry and has become one of the biggest players in the game. The availability of telecom services to every class transformed the industry and promoted digital connectivity. This business model made it a market leader heading towards monopolising the market. The theory of the leisure class is further reinforced by the ostentatious wealth the Ambanis display on many occasions. Most notably during the pre-wedding bash of Anant Ambani and Radhika Merchant, where they spent a whopping INR 1,259 Crores (Financial Express, 2024).

The Birla family stands as another powerful example, wielding substantial control over the country's economic policies since independence. The independence movement, to some extent, was funded by the Birlas who are prominent members of the leisure class. The Birlas have been the cornerstone of the Indian industry for over a century and have demonstrated great contribution in the fields of textiles, cement, aluminium, telecommunications, and financial services. During the economic reforms of 1990, they were instrumental in the formulation of various liberalisation policies and are responsible for many labour laws applicable today in our country. Their heavy influence in policies related to trade and industry is evident in  their role in expanding the Indian market, reducing trade tariffs, and streamlining customs procedure.

Furthermore, the Adani Group’s relation with Prime Minister Narendra Modi and his ruling Bharatiya Janata Party (BJP) is another instance highlighting the intersection of the leisure class with politics. Gautam Adani is known for his close ties with the party. The Adani Group heavily invested in the Make in India and Digital India initiatives by the Prime Minister. His vision, claimed to be aligned with the current government, prompted a relationship that catapulted him into becoming the richest man in Asia, however briefly. The Group’s rapid expansion to areas such as ports, power, and mining can be attributed to the favourable policies and regulatory decisions influenced by its political connections. The support they received from the government included large land acquisitions and clearances in Gujarat, enabling them to carry out large-scale projects, such as the Adani Ports, hassle-free. Moreover, the government changed rules in special economic zones (SEZ) to favour the Adani Group. Specifically, rule 47 of SEZ guidelines was modified to facilitate a refund of INR 500 crore to the Group, by empowering customs, excise and service tax officers to process the refund applications (Thakurta, 2020).

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​​The aforementioned cases highlight that the influence stems, in part, from the substantial contributions these industrialists make to the political parties in India that form the government. It is a mutually beneficial relationship that is not practiced officially but through opaque schemes. For instance, corporate-backed electoral trusts have become the go-to for conglomerates to channel their funds to political parties. Electoral bonds were started in 2017, by the BJP government, wherein through the State Bank of India, donors could buy bonds in the four windows released in tranches. The share of the funds that the parties receive depends more on the amount of power and influence they hold rather than any particular ideology.