There were plenty of cultural and historical theories to explain the conglomerates’ successes, but mostly it came down to what Swedish economist Gunnar Myrdal once called India’s “soft state.”16 Western companies could raise capital through financial markets, and rely on the state to build good quality infrastructure. They also hired graduates from good universities and used the courts to settle disputes. In India, all of this was different: capital was expensive, infrastructure dilapidated, talent scarce, and the judicial system typically creaky and unreliable.17 Many businesses decided they
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