Andy Mukherjee writes ….India’s per capita income gap with the U.S. in 2014 was the same as China’s was in 2002. But while back then aggregate Chinese prices were 24 percent of U.S. levels, the figure for India is already 29 percent. Unless New Delhi can create opportunities for faster catch-up in incomes, further economy-wide price increases will only erode competitiveness.
From transport to communication and investment banking, the motto of every Indian business seems to be: “Let’s get volumes today, pricing power will come tomorrow.” For tycoon Mukesh Ambani, it means feeding his countrymen 3.4 billion hours of video content every month, and hoping that his telecom service’s less than $2-a-month revenue per user will turn into a bigger number tomorrow.
As Andy summarises ,our fixed cost structure is just too high to deliver profitability at current levels of income inspite of industry consolidation (oligopolies)
https://www.bloombergquint.com/opinion/2018/08/10/india-s-cheap-air-tickets-are-killing-jet-airways