India Attracts Capital, But Not Enough Royalties
Argument
India has become a major magnet for foreign capital, but Gupta and Doshi argue it still captures too little of the value created inside the country. Their case is that India keeps building markets and factories for others to monetise through brands, patents and technology, while Indian firms remain weak in those higher-value assets.
Assessment
They support that claim with a set of striking figures: large dividend, royalty and IP outflows, a persistent net IP deficit, and a comparison with South Korea, China and Brazil on how much profit stays domestically. The argument is strongest as a diagnosis of India’s weak ownership of intellectual property, though some of the comparisons rely on broad national averages and the article does not test sector-by-sector differences.
Counterpoints
The authors concede that some protection for infant industries can be justified, but say it has become a habit rather than a temporary lift.
Their policy answer assumes firms will respond to time-bound support, export tests and better IP incentives, but the article does not show how quickly those reforms would change corporate behaviour.