CHAPTER 12

Role of Noneconomic Factors Influencing Indian Economy: Cultural, Social, Legal, and Political

This chapter focuses on understanding the nature and working of all the noneconomic forces that have shaped the economy. Of course, their degree of influence differs from time to time. They are related to the social, cultural, legal, and political setup. Social and cultural factors are interrelated with other dimensions of the economy. Every economy is influenced by these forces, and the Indian economy is the product of the working of all these forces from time to time. Globalization has led to the growing interconnectedness of societies and has brought about significant changes, and nations have become multicultural. Political factors are rooted in the democratic functioning of the country, which entails elections and political parties. Economies do not exist in a vacuum, and even the most successful economy must be aware of changes in the nature and dimension of noneconomic forces in which it exists. Policy decisions taken by the governments must consider their actions in view of their repercussions that echo throughout the economy.

The economy exists in society and functions for society. This makes it necessary to understand all the forces working in the economy. Social forces connote nonmarket issues, which predominantly include religion, culture, beliefs, social norms and customs, environmental protection, health and safety, human rights, social activists’ pressure groups, media coverage of business, corporate social responsibility, ethics, and so on. Every economy works in a society, so societies’ different factors affect its working. It consists of institutions and the basic values and beliefs of a group of people. The values can be further categorized into core beliefs, which are passed on from generation to generation and are very difficult to change.

Sociocultural forces have to do with the attitudes and values of society, and these significantly shape behavior. The impact of the social forces is felt in changing needs, tastes, and preferences of consumers and expectations of society. The economy comprises various social groups like consumers, investors, employees, local community, and competitors. The needs and expectations of these social groups are the result of factors such as cultural values, beliefs, customs, morals, norms, attitudes, and traditions. Continuous changes are taking place in these forces, resulting in changes in fashion, lifestyle, and so on, and creating demand for new products. The economy must take cognizance of all these changes. These forces are dynamic and change along with social change and growing consciousness among different social groups (Wetherly and Otter 2018).

The social components are complex because they cover wide-­ranging aspects of society, such as language, aesthetics, education, religion and superstitions, attitudes, values, material culture, technology, social groups and organizations, business customs, and practices. Individuals raised in such a milieu can trigger expressions of behavior for which they are genetically predisposed; the same person raised in a different environment may exhibit different behaviors. Some of the important elements are as follows:

1. Social organization and structure, which refers to the way people relate to each other, for example, extended families, units, kinship. Other forms of groups may be religious or political, age, caste, and so on. All these groups may affect the functioning of the economy. Owing to changes in family composition, more nuclear families with single-child concepts have emerged. This increases the demand for the different types of household goods and constantly changing preferences of customers. It may be noted that the consumption patterns and the dressing and living styles of people belonging to different social structures and culture vary significantly.
2. An understanding of the demographics of the customer base in an economy can provide a business with invaluable pointers to launch new products, pricing, marketing strategies, and so on.
3. Educational institutions are the main part of societies. Education refers to the transmission of skills, ideas, and attitudes as well as training in particular disciplines. Education can transmit cultural ideas or be used for change. Levels of education or the lack of it affects the economy in a number of ways.
4. Religion provides the best insight into a society’s behavior and helps answer the question why people behave rather than how they behave (Wetherly and Otter 2018). Different religions have different principles, rules, and regulations in which they sacrifice the use of some products and the consumption of some kinds of food. Religion can affect the economy in a number of ways. Sensitivity is needed to be alert to religious differences.
5. Culture is very often hidden from view and can be easily overlooked. Similarly, the need to overcome cultural myopia is paramount. Nationalism is a cultural trait that is increasingly surfacing. Culture is a very powerful variable and cannot be ignored.
6. Language: India is a multilingual country where the eighth schedule to the Indian Constitution contains a list of scheduled languages (originally 14 but since expanded to 22). Language can cause communication problems, especially in the use of media or written material.

Social and cultural forces differ not only from place to place but also from one time to another, and this cannot be ignored because neglecting such forces means neglecting future stability and growth of the economy. This explains its dynamic nature, and while analyzing the sociocultural elements, it is important to recognize that society and culture are not homogeneous or fixed, but diverse and fluid or dynamic. Social and cultural change is symbolized by the widely recognized phenomenon of a generation gap. This refers to the way in which, owing to social and cultural change, each generation tends to feel somewhat out of touch with (and even bewildered or shocked by) the attitudes and behaviors of the next.

In modern times, the culture industries make up a significant part of the economy, reflecting the shift from manufacturing to service industries. Wetherly and Otter (2018) emphasized that

Culture has become increasingly big business as a growing share of consumer expenditure is dedicated to lifestyle purchases rather than material necessities. This can be seen in the growth of the wide range of businesses concerned with leisure and tourism. For example, cheap flights have enabled growing numbers to widen their cultural horizons, through foreign travel. The rapid development of information and computer technology has transformed the way of communication, consume cultural products such as music, and gain access to information. Cultural trends are driven powerfully by product innovations spurred by business’s competitive pursuit of profit. On the other hand, critics point to the negative impacts of business on culture and society. Apart from the serious environmental risks flowing from affluence, it can be argued that the ‘capitalist mentality’ of self-interest and competition invades other areas of life, creating an individualistic society and undermining community.

Social and cultural factors have a profound effect on policy makers, as they run the risk of alienating themselves with their immediate environment. No economy can survive and grow without social harmony. The social forces differ over space, time, and methods. Each and every social group has very definite expectations from society. It is important to remember that the success of an economy can be explained more by social forces than by structural or material changes. Economy must either respond or change to it. “Whilst internationalism in itself may go some way to changing cultural values, it will not change values to such a degree that true international standardization can exist. The world would be a poorer place if it ever happened.”1

A growing social awareness in India has brought products created by multinational corporations (MNCs) on the Indian markets. In fact, MNCs are introducing products that conform to Indian tastes. Take the case of Pizza Hut selling pizzas through its outlets in India. It is important to note that what they have brought to India is not merely an American style pizza but a way of serving food in a nice, clean, bright place at a price an ordinary family can afford. But the food they serve is what Indians like. Domino’s offers a 100 percent vegetarian pizza, cooked in a kitchen where no meat items are allowed. Similarly, McDonald’s has opened vegetarian-only outlets in India. A restaurant known all over the world for its beef offerings has shown a high level of flexibility to be in sync with the sociocultural environment of a country. By adapting itself to the prevalent sociocultural environment, McDonald’s has been able to penetrate into the Indian market and establish itself as one of the most popular eateries in the country. One of the major changes that Western MNCs have made is the introduction of products and services that suit the Indian style of consumption. An understanding of social change gives business a better feel for the future economic situation.

Political Forces

The political forces include all the laws, government agencies, and groups that influence or limit organizations and individuals within a society. In its widest sense, they also include the effects of pressure groups that seek to change government policies, including the political system, the government policies, and attitude toward the business community and unionism. All these aspects have a bearing on the strategies adopted by the business firms. India has an open system of government, which is democratically elected by the citizens of the country. The political factor is one of the less predictable elements. The fact that democratic government has to seek re-election every five years has contributed to a cyclical political environment. The stability of the government influences business and economic activities considerably, sending a signal of strength and confidence to various interest groups and investors. Further, the ideology of the political party also influences the economic activities of the country.

The government formulates and executes a set of policies and programs. Quite a few of these policies are executed through legislation, which, along with enactments, rules and regulations, systems and procedures, policies and plans, statements and announcements, and directives and guidelines of the government, constitute the politico-legal environment. The laws and regulations governing the economic activities concerned have to be followed, and noncompliance results in punitive measures.

Constituents of political factors: Depending on the nature of the government at work, the economy and its various components have to organize their activities. The following are the main elements of political factors:

1. India has a federal form of government, constituting three layers of government—central, state, and local. In this way, the system of government and the structure of administration affect the economy.
2. Regulations on pricing, hiring, and production and environmental regulation will very likely influence business decisions. In the field of international business, in particular, countries have entered into regional trading agreements. Companies doing business face regulations such as trade barriers, tariffs, and so on, depending on where they are trading from and with whom. Almost all countries are a part of one or more regional trade agreements. In an era of globalization, the political environment in which many businesses operate is not confined to the Indian political system because MNCs operate in more than one country.
3. Political parties: The political environment is a direct consequence of the political parties in power, which represents the popular opinion of the citizens of the country. The rules and regulations created by the politicians significantly influence the cost of running a business and the way it can market products and services. Politicians pledge to deal with local concerns. For example, in India there are severe regulations about advertising of alcohol and tobacco.
4. Role of opposition: The parties that do not command a majority form the opposition. The strength of the opposition very often depends on whether or not the opposition parties are united or divided. The opposition can make constructive criticism of government policies. As a result, the government cannot afford to act irresponsibly.
5. Political stability: In the absence of political stability, there would be a tremendous amount of what is called nonmarket risks and uncertainties. Stable polices instill business confidence and facilitate corporate planning. Policies once formulated have to be implemented, and this process needs political and bureaucratic will.
6. Bureaucracy/civil service: Bureaucracy is the permanent machinery of the government and is meant to maintain continuity in government operation. In a system where the government intervenes and regulates business extensively, the bureaucracy is very powerful in enforcing government rules and regulations, systems and procedures, licenses, and restrictions.
7. Pressure groups: In order to secure the maximum favor from the existing government, businessmen create their own lobby, whose strength partly decides whether the government adopts pro- or ­antibusiness measures. Politicians are usually the people ­controlling the operations of a government. Without a clear understanding of the dynamics of politics and support and encouragement from the politicians, business cannot prosper.
8. Public opinion is very important, and political leaders are the representatives of the public and the spokesmen of its opinion.
   G W F Hegel stated that “public opinion deserves to be respected as well as despised.” Civil societies are in a position to influence public opinion and shape the political consensus within society.

Political environment and doing business in India: India has a plural political system, with significant differences in political parties and their policies. About three decades ago, in 1991, India opened its market to the world and now has absolutely become an open global market. The banking sector, insurance sector, and all fields of industry and business are now open for multinational investment. Political parties have the patronage of many factors, castes, creeds, and ideologies. Politicians need to win votes, but they also need to negotiate a relationship with business, especially big business, both to help generate growth, which brings them revenue that they may disperse, and also more directly for purposes such as financing of election campaigns. This tension is even more pronounced in India’s democracy, embodying a large number of poor voters, in which the pressure favoring redistribution over growth is politically irresistible. This may not coincide with what are typically considered probusiness policies. During the 1991 reforms, when the license raj was dismantled, entrenched big business, which essentially had monopoly licenses, lost the game to consumers and new businesses that were allowed to enter and thrive in a more competitive economy. The Insolvency and Bankruptcy Code, perhaps the government’s most important economic reform, is not especially popular with defaulting company promoters, who were happy with the old system. The lesson is that there is a basic continuity in the Indian political economy and that fears of political capture by big business are at present overblown (Dehejia 2018). The prime minister declared that he was not scared to be seen in the company of corporate chieftains.2 India has ceased to be hostile to those who create value, jobs, and wealth within a penumbra of integrity.3

Corruption affects India’s business and political environment: Corruption poses a challenge to the country’s economic growth. A growing rash of corruption scandals since the late 2000s has damaged the government’s credibility, caused a major loss of tax revenues, led to social unrest, and widened income inequality. India is the 78th least corrupt nation out of 175 countries, according to the 2018 Corruption Perceptions Index, reported by Transparency International. India’s corruption rank averaged 75.67 from 1995 until 2018.4 The index refers to perceptions of the degree of corruption held by businesspeople and country analysts.

The idea of an anticorruption body and an ombudsman to look into corruption allegations against administrators, including legislators, has been floating around for over five decades now. It finally came into shape with the passing of the Lokpal and Lokayuktas Act in 2013 and received the assent of the president on January 1, 2014. However, only in March 2019 was the appointment of the chairperson and members of the Lokpal finally made. Reforms and privatization cannot be done by passing or deliberately shortchanging other democratic institutions that either frame laws or interpret them. Upholding constitutional proprieties must be given top priority as they alone will enable a proper framework for governance in the country. All other objectives such as reforms and privatization must necessarily flow from this.

The issue of reservation and political parties: Although reservation continues to be a contentious issue and is used by political parties to win votes, the only explicit reservation policy contained in the Constitution is for seats in the legislature—reserved constituencies for scheduled castes and scheduled tribes (SCs and STs). Even this reservation was meant to have a tenure of 10 years, but, through amendments, has been renewed every 10 years. The idea of reservation for SCs and STs was originally premised on the principle of correcting deprivation forced on them by centuries of prejudice. The term “backward class of citizens” has been defined by the Supreme Court in the Mandal case (Indra Sawhney vs Union of India, 1992)5 judgments to include the SCs, STs, and socially and educationally backward classes (SEdBCs).

The Constitution did not envisage reservations for SC/ST for as long as 70 years. OBC reservations were not part of the Constitution but were brought in via the Mandal report. Special privileges have been bestowed on SC/ST/OBC in regard to admissions in colleges and jobs in the government, and a quota has been created for promotions. Government has moved to expand the country’s affirmative action agenda. A quota for the economically poor sections of the socially advanced castes is not a new idea. The move is aimed at winning over educated middle India that is unable to secure a decent education or white-collar job, and has therefore traditionally been at the forefront of antiquota agitations. The clamor for quotas stems from the inadequate supply of quality education and jobs. The government has sought to provide a 10 percent quota for economically weaker sections (EWS) in public employment and educational institutions. The 124th Constitutional Amendment received the president’s assent on January 12, 2019, which extended what is limited to the “socially and educationally backward” to the economically weak (for whom the annual income ceiling for eligibility is fixed at Rs.8,00,000 per family (equivalent to $11,198) and has been passed by parliament. At present, the affirmative action is restricted to SCs, STs, and Other Backward Classes (OBCs), adding up to 50 percent. The additional reservation will mean increasing the reservation quota to 60 percent. SCs, STs, and OBCs account for 70 percent of the population. The EWS reservation thus pertains to the remaining 30 ­percent, or 39 crore (390 million) people, who fall into the general category.

What deserves emphasis is that the 10 percent quota for the EWS of the population is the first reservation system for those not currently covered by government support. This will be the first time that poor non-OBC, non-SC/ST individuals will get a chance. And given that Muslims are the poorest (economically weakest), they should obtain preference in the EWS 10 per cent quota. The positive aspect of this affirmative action of the government is based on allowing Muslims the benefits of misguided social policies—quotas and reservations (Bhalla 2019).

It is important to understand that reservation is not just a matter of redistribution. Economic policies affect the distribution of income both before and after taxes and transfers. For fear of losing votes, no political party today can afford to roll back reservations or even suggest that it be limited to one generation only.

Regardless, this implicitly raises a more fundamental question on how electoral behavior continues to be defined in this country around religious and caste denominations. In turn, this has enabled politicians to pursue a flawed list of priorities for the country—­eschewing basic focus areas such as health and ­education—­without being challenged. This is a systemic failure over the last seven decades. (MINT January 9, 2019)

Legal Environment

This section will consider the role of the law in society and, in particular, the way that the law impacts on economic activity. The structure of the law has been affected by changes in the political milieu and by globalization. The law does not exist in a vacuum and is not a static entity. It reflects the value of society in which it is made and changes with it. If a law does not do this, it can fall into disrepute and be overturned. The legal or regulatory dimension describes the framework of legislation impacting business. It includes all the laws, the legal system, and the judicial system of the country. A business has to work within the framework of a country’s laws and regulations. In the present world, the basic legal setup is defined by state, country, and international laws. These include laws on what can or cannot be produced or sold, consumer and employee protection laws, tax and other financial laws, as well as many rules and regulations addressing business ethics, when and how to seek legal advice in case of disputes, and so on.

There is an entire rubric of rules of behavior that is applicable to day-to-day activities. The process of law making is a balancing act between different competing interests and value systems. The level and type of legal intervention is, therefore, very much a result of the political process. All business conduct is regulated by the law; every transaction and relationship is governed by an increasingly complex mix of statutory and judge-made laws.

The law is not a monolithic entity. It is formed in different ways and has a number of different categories. This is not surprising given the range of activities that it covers. The law cannot be seen in isolation and, in particular, is closely linked to the political establishment. The law has been influenced by the process of globalization. Law is increasingly made at an international level rather than within the nation-state.

Importance of legal setup: Business laws are numerous and varied. They are enacted to protect the business interests of various groups in society. Laws are needed to protect the consumers, workers, managers, owners, shareholders, and society at large. It is through this set of legislation that order is maintained in the industrial economy. Industrial order and harmony is a condition for survival and expansion of business. Not only do laws protect business, but sometimes they also create business. Take, for example, the tax laws; the greater the number and complications of tax laws, the greater will be the business of tax consultants. Thus, economic legislation and business environment interact with each other.

The functioning of the legislative, executive, and judicial organs of the government affects the business environment directly and indirectly. All these organs run through organizations and institutions. For example, the judiciary runs through the Supreme Court, high court, and the lower courts. Unless these courts function efficiently, adjudication of business laws, like other laws, will be at stake. Similarly, unless the police department acts with vigilance, economic offenses will only increase. The judiciary is independent of government, and judges are answerable to the Constitution and not to politicians. Through the court system, citizens can have some redress against the legislature, executive, or civil service that acts beyond its authority. Business organizations have become increasingly willing to use the courts to challenge allegedly incorrect government procedures that have put them at a disadvantage.

Laws governing business in India: Business must be operated under the rules and regulations of different laws of India, most notably:

1. Indian Contract Act, 1872
2. Indian Sale of Goods Act, 1930
3. Indian Partnership Act, 1932
4. Factories Act, 1948
5. Industries (Development and Regulation) Act, 1951
6. Trade Union Act, 1926
7. Industrial Disputes Act, 1947, 1972
8. Payment of Gratuity Act, 1972
9. Contract Labour Act, 1971
10. Minimum Wages Act, 1948
11. Companies Act, 2013
12. Foreign Exchange Management Act, 1999
13. Prevention of Food Adulteration Act, 1954
14. Essential Commodities Act, 1955
15. The Standards of Weights and Measures Act, 1956
16. Consumer Protection Act, 1986
17. Indian Income Tax Act, 1961
18. Security Exchange Board of India Act, 1992
19. Banking Regulation Act, 1949
20. Chartered Accountant Act, 1949
21. Information Technology Act, 2000
22. Trade Marks Act, 1999
23. The Patents (Amendment) Act, 2005
24. Competition Act, 2002
25. Right to Information Act, 2005
26. Micro, Small and Medium Enterprises Development Act, 2006
27. Commission for Protection of Child Rights Act, 2005
28. Bureau of Indian Standards Act, 1986
29. Environment Protection Act, 1986

International business legislation: It covers the main laws linked to the three basic categories of international business, namely, trade, international licensing of technology and intellectual property, and foreign investment. The legal environment in India follows the rules of the World Trade Organization (WTO). Intellectual property protection follows patents, trademarks, and copyrights. Business regulation broadly applies to foreign capital, foreign exchange regulations, industrial licensing regulations, trade regulations, and import and export restrictions. Firms involved in global business must be familiar with and obey the laws of their home country, the local laws of each country in which they do business, and international laws. Business practices that are common in one country may be illegal in another, for example, the bribing of public officials.

Post reform of 1991: The institutional dimension has been brought under a steady focus through the establishment of a number of regulatory institutions. The regulatory structure that has emerged can be explained as the outcome of a complex interplay of conflict, competition, and strategic maneuvering. When underlying conditions change, adjustments in the regulatory framework do occur. Legal process, spearheaded by the judiciary, plays a key role in channeling the evolution toward a stable and rational regulatory framework. The judiciary has played a crucial role in shaping the structure and functioning of the regulatory apparatus by resolving disputes, demarcating jurisdictional boundaries, and setting the rules of the game. The telecommunications industry provides a good example of the role of the judiciary in the evolution of government–business relations. According to Sen and Suraj (2009), the evolution of government–business relations in Indian industry can be understood in terms of the interactions and activity of a given set of actors such as the department/ministry, ministers, civil servants, private firms, regulatory institutions, and the appellate authority, the Supreme Court, consumers, citizen groups, and media.

Changing the rules of competition through liberalization involves a clash of economic interests. Parliament enacted the Competition Act 2002, which, after significant amendments, came into effect in 2007. A new Competition Commission of India (CCI) has been created to replace the four-decade-old Monopolies and Restrictive Trade Practices Commission (MRTPC). The objectives of competition policy have been spelled out in broader terms, which clearly go beyond the interests of particular segments of producers. Larger issues of efficiency, consumer welfare, and technological dynamism have been introduced.

The maxim ubi jus, ibi remedium (“where there is a right, there is a remedy”) captures the purpose of a legal system. Judicial review is designed to prevent the abuse of power and neglect of duty by public authorities. In response to the changing socioeconomic conditions, the Supreme Court creatively introduced the concept of public interest litigation (PIL) through a set of decisions rendered in the late seventies and early eighties (most notably in the matter of S P Gupta vs. Union of India [1982]).

Sen and Suraj have concluded that

one of the changes in the legal system that could be witnessed since the onset of liberalization in India is that of the emergence of several laws toward regulating the sphere of commercial activities. These laws have sought to replace the traditional form of discretionary, public interest based and inherently political policy-making processes with a more certain and rule-based procedure. The new look of the laws could be attributed to the need for better recognition of rights and for sharper enforcement mechanisms. Indian industry has moved from a system of deep-rooted and pervasive government controls to one in which markets and competition are increasingly important. Central to this transformation is the creation of a new institutional framework that specifies the new rules of the game—comprising rules governing competition, independent regulatory and appellate structures. The government is no longer a monolithic organization, unified in its approach to the economy. Process of institutional evolution is ongoing, since the process arises out of a contest among powerful players—­including large enterprises in the private sector—there has been a trend toward an oligopoly market structure. (Sen and Suraj 2009)

The functioning of the legislative, executive, and judicial organs of the government affects business environment directly and indirectly.

Indian Economy and Media

The media are businesses, but not just any businesses. In addition to reflecting public opinion, they also mold it and thus wield immense political influence. That is why dictators seek to control the media and democratic politicians to use them. The media are the forum for democratic politics. This is why they matter. Diverse media require diverse ownership. But economic forces may generate a degree of concentration incompatible with desirable diversity. Politicians will then find themselves groveling before proprietors who control their communications with the public. At worst, the proprietor may so twist and distort this needed communication as to transform public life.

The economics of the newspaper and the environment of its business have been facing challenges as the internet devastates traditional advertising-based business models. While viewing the media as business of grocers is a grave error, it is no less misleading to ignore the economics of these businesses. Media must be funded. If funds are not to come from the market, they must come from somewhere else. That, too, creates dangers, particularly in our era of profound technological change. What is now needed is a comprehensive re-examination of the role and regulation of the media. Moreover, any conclusions of such a review must explicitly include a commitment to further review in future, to take account of ongoing changes in technology and the business environment (Wolf 2011).

Such a comprehensive review would look at:

1. the law on privacy and libel;
2. regulation of the press;
3. the concentration of ownership within and across media;
4. the role of public service broadcasting; and
5. public funding of media, more generally and particularly of the news.

Wolf believes that

the privacy of the powerless needs more protection and the wrongdoing of the powerful are far less; redress against malicious coverage needs to be tougher, while preserving freedom of expression; rules on cross-ownership of media should be far tighter, and we should consider whether the public good of high-quality news gathering and analysis deserves public support. (Wolf 2011)

It is essential to design a structure of the media, while curbing abuse, including concentrations of unaccountable power. The media are too important to be left to the mercies of politicians or judges. But they are also too important to be left to dominant proprietors.

Ansari (2011) (former vice president of India) observed that in recent years, rapid and unprecedented changes have taken place in our society, economy, and polity that have also transformed the Indian mass media system. The growth in its scale, reach, and influence, however, has not been matched by corresponding sensitivity toward noncommercial and nonmarket dimensions. Its centrality is enhanced manifold by increased literacy levels and by the technological revolution of the last two decades and its impact on the generation, processing, dissemination, and consumption of news. Two other consequences of the change need to be noted:

1. Media platforms and devices for consumption today vary between traditional, nonconventional, and experimental. They span traditional print, audiovisual, and digital modes. Convergence between news media, entertainment, and telecom has meant that the demarcation between journalism, public relations, advertising, and entertainment has been eroded.
2. Increases in per capita income, discretionary spending capability, attractiveness of India as a market and as a destination of foreign investment have all reinforced the centrality of the Indian mass media system.

As a result, media outlets assume importance not only for marketing and advertisement but also for the soft power aspects of businesses, organizations, and even nations. Media entrepreneurship today is a necessary condition for any growing business enterprise, political party, and even individuals seeking to leverage public influence for private gain.

Issue of regulation: The sole statutory, quasi-judicial body set up for media regulation in the country is the Press Council of India. Although it aims to preserve the freedom of the press and maintain and improve the standards of press in India, it has no way of imposing punishments or enforcing its directions for professional or ethical violations. In the absence of any other government regulator, the focus has shifted to self-regulation by the media organizations, individually or collectively. Collective self-regulation has failed because it is neither universal nor enforceable. Individual self-regulation has also failed owing to personal predilections and the prevalence of personal interest over public interest.

Ansari (2011) has observed that the most effective de facto media regulator happens to be the advertisers and sponsors who determine the bulk of the revenue stream of our media industry. Their aims and desired outcomes, however, might not align with the public policy goals of the government or makers of public interests and may, instead, stand in opposition to them when the government, the polity, the market, and the industry are unable to provide for full-spectrum systemic regulation that protects consumer welfare and public interest.

All stakeholders of the media industry must realize that the ethical underpinning of professional journalism in the country has weakened and that the corrosion of public life in the country has impacted journalism. It is for the journalistic community to take the initiative and seek to address the various concerns regarding the profession. At the same time, all categories of regulation or binding guidelines must be strengthened with a view to securing and defending the public good—by the government, the media organizations, the industry, civil society, advertisers and sponsors, and the audience and readership of the media. In this context, Ansari recalls the words of Walter Lippmann:

the real danger to the press springs not so much from the pressures and intimidation to which it may be subject but from the sad fact that media persons can be captured and captivated by the company they keep, their constant exposure to the subtleties of power. (Ansari 2011)

Endnotes

1. 1. S. Carter. 1997. “Chapter 3: The Cultural Environment.” http://www
   .fao.org/3/w5973e/w5973e07.htm, (accessed October 10, 2019).
2. 2. The Economic Times. July 30, 2018. “PM Right on Company of Industry Captains,” Editorial Comment. https://economictimes
   .indiatimes.com/blogs/et-editorials/pm-right-on-company-of-industry-captains/, (accessed October 11, 2019).
3. 3. Jaithirth Rao. 2018, August 1. “Meaning Business, Finally.” Financial Express. http://epaper.financialexpress.com/1759192/Delhi/August-1,-2018#page/9/2, (accessed October 11, 2019).
4. 4. Trading Economics. n.d. “India Corruption Rank.” https://tradingeconomics.com/india/corruption-rank, (accessed October, 2019).
5. 5. Casemine. n.d. “Indra Sawhney V. Union Of India and Others,” Etc.... on 16 November, 1992. https://www.casemine.com/judgement/in/5609ad55e4b0149711411191, (accessed October 17, 2019).