India’s economic rise is undeniable. Yet, beneath the surface, an under-addressed issue is shaping consumer choice, innovation, pricing, and long-term competitiveness: the rise of duopolies in key sectors.
Whether it’s aviation, where IndiGo and Air India together dominate over 80% of domestic traffic, or sports broadcasting, where the JioStar–SPNI axis controls premium sports rights — India is increasingly relying on two-player ecosystems across industries.
While scale and efficiency are valuable, excessive market concentration silently erodes the foundations of a healthy, competitive economy.
Why Duopolies Hurt India’s Growth Trajectory
A duopoly isn’t illegal — but it can be economically damaging if left unchecked. Here’s how:
1. Reduced Consumer Choice & Higher Pricing
When two large players shadow each other’s pricing or bundling strategies, consumers lose bargaining power.
In aviation, fare spikes during peak seasons or crises become common.
In sports broadcasting, fans face fragmented streaming platforms and rising subscription costs.
2. Innovation Takes a Backseat
A concentrated market weakens the motivation to innovate.
If challengers are unable to scale, incumbents face less pressure to improve service quality, invest in technology, or rethink customer experience.
3. Fragile Systems With National-Level Impact
When a single dominant airline experiences disruptions (as recently seen with massive cancellations), the entire country faces chaos.
Similarly, in sports broadcasting, when only two bidders dominate rights auctions, smaller sports, regional coverage, and independent producers get sidelined.
4. Entry Barriers Become Insurmountable
High capital requirements, exclusive contracts, slot limitations, and bundled content ecosystems make it extremely hard for new companies to enter and compete.
This discourages startups and investors — ultimately slowing job creation and sectoral innovation.
Why Duopolies Form in India
Several structural factors accelerate duopoly formation:
- High fixed costs (aircraft, rights acquisition, digital infrastructure)
- Network effects that reward scale
- Limited access to finance for new players
- Regulatory systems that unintentionally favour incumbents
- Absence of legal treatment for collective dominance
Unless India proactively monitors and corrects sectoral concentration, duopolies will continue to solidify.
How the Government of India Can Actively Counter Duopoly Risks
A strong, forward-looking policy architecture can reinstate market competition. Key steps include:
1. Establish a Duopoly Risk Identification Framework
Use objective indicators such as:
- Combined top-2 market share above 75%
- High Herfindahl-Hirschman Index (HHI)
- Frequent exits or bankruptcies in the sector
- Systemic importance (aviation, telecom, digital payments, energy)
2. Strengthen Competition Law
- Introduce legal provisions for collective dominance, not just individual abuse.
- Apply strict scrutiny to mergers in already concentrated sectors.
- Mandate transparency to prevent exclusionary tactics.
3. Enable New Entrants With Pro-Competition Regulation
- Fair slot reallocation in aviation
- Multi-winner, diversified rights auction formats in sports broadcasting
- Limits on exclusive contracts
- Data portability and platform interoperability in digital markets
4. Support Challenger Firms Through Industrial Policy
- Introduce a “Challenger PLI” for non-dominant players
- Provide concessional finance through national funds
- Use government procurement to create initial demand for newcomers
- Invest in shared infrastructure (MRO facilities, studios, technology systems)
5. Empower Consumers
- Unified dashboards for real-time price and service transparency
- Standardised labelling of subscription packages
- Public-interest tests for mergers in critical sectors
Conclusion: India Needs Many Contenders, Not Just Two Giants
As Peter Drucker famously said:
“The best way to predict the future is to create it.”
If India wants a future defined by innovation, competitiveness, and resilience, creating diverse and contestable markets must be a national priority.
Duopolies may offer efficiency in the short term, but in the long run they slow progress, weaken ecosystems, and suppress innovation.
By empowering new entrants, enforcing competition, and redesigning market structures, India can build vibrant industries that truly support its $10 trillion economic ambition.