The current corruption allegations being discussed in India are unprecedented. They have exposed a web of complicity between so many powerful actors on a scale that almost no one could imagine. These allegations bring to light three incontrovertible trends. First, that the scale of rents government can now extract from sectors it controls—infrastructure, land, and licensing granting powers—has increased with the growth in the economy. Second, capital is still totally dependent upon the state. Much of what we see as the lobbying of capital is not so much for special favours, as it is to make sure that entry barriers to particular sectors do not remain closed. But this is a game only big corporates can play. Indian capital is also extraordinarily timid; always at the beck and call of politics.
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