I am a master in India

Chapter 271 The Network of Grace
India has no legal constraints on political donations; it's a complete legal vacuum.

During elections, members of various parties talked at length about corruption and cronyism, but avoided mentioning political donations, as if everyone had suddenly become deaf and blind.

Nobody touched on the topic. Apart from a few commentators making a few remarks, the whole of India tacitly accepted the legitimacy of this thing.

The reason is simple: elections cost money.

In developed Western countries, election funds can also be raised through public crowdfunding.

Try crowdfunding in India? Most people there are poor and can't even afford food, let alone crowdfund.
The poor vote actively because they hope the elected party will give them benefits.

It's neither possible nor realistic to ask them to contribute financially.

The poor don't have many rupees in their pockets; that's all they have. Who would be willing to go bankrupt to support a political party?

Ultimately, the issue comes down to funding; politicians can only get money from businessmen to participate in elections. They might even have to give money to the poor to get them to vote.

Even the BJP, with its relatively radical political views, cannot do without money, a fact well understood by both Adniwa and Modi.

Local merchants like Adani were one option, but outsiders like Ron were even less likely to be overlooked.

Those lands and mines have been left there for hundreds or thousands of years, and when no one is interested, they become worthless.

Now that someone needs it, and it happens to be election time, it's a good time to exchange some money.

To be honest, after spending a few days together, Adniwa and Mordi had a good impression of Ron.

He is not the kind of cunning businessman who lies all the time, and Suer Electric is a genuine brand.

There's no reason to turn away someone who is both reliable and capable of making substantial political donations.

That's ten million rupees. The BJP hasn't even been elected yet, and even a local businessman like Adani doesn't have that kind of guts.

Adniwa values ​​Ron highly and intends to maintain the relationship.

Because campaigning is only one part of the expenses; whether it's building a network of patronage or training more candidates, a lot of money is needed.

As party leader, Adniwa is considering not only winning the election, but also securing his position long-term after taking power.

This requires the maintenance of interests, namely the so-called patronage network, which consists of the poor, politicians, and businessmen.

India is very poor, the quality of public services is worrying, and social welfare programs for the poor are ineffective.

Public schools and hospitals are practically defunct, and the country cannot even guarantee the most basic necessities of water and electricity for the working class.

At this point, politicians take advantage of the situation. The poor cannot afford the public services they want, but they have the voting rights that politicians desire.

So politicians make all sorts of promises during their campaigns, the poor vote for them, and once elected, the politicians provide them with jobs in government departments, distribute relief funds, or give them money directly.

However, only wealthy businessmen can afford the campaign funds that politicians need to do all this.

Of course, businessmen don't give away their money for free; they will obtain public resources or contracts from politicians at preferential prices.

A chain of interests has been formed. Voters benefit from it and continue to vote for politicians, allowing politicians to be re-elected. Voters also turn a blind eye to the collusion between politicians and businessmen.

This is the network of patronage, a tacit understanding formed among the poor, politicians, and businessmen.

So, is this kind of operation considered corruption? Is it considered nepotism?

It's hard to say, because the poor have indeed benefited, and their lives have improved a little.

At the same time, politicians will also ask businessmen to provide resources to support those public infrastructure projects.

For example, Adniwa demanded that Suer Electric allocate a quarter of its profits to the development of Gujarat.

Even if Ron uses the money to invest in other businesses, it will indirectly create jobs.

In the end, this network of vested interests, which clearly did not conform to the process of justice, actually did good things.

It's contradictory, very contradictory.

Of course, a good outcome depends on the fact that the politicians and businessmen in the benevolent network have a genuine conscience.

From the perspective of representation, they are in a dominant position, and the poor cannot exert strong constraints on them.

If politicians are greedy, or businessmen are cunning, then the benevolent network will produce completely different results.

This is India's electoral politics—it is pathological and contradictory, and the law is powerless against it.

Furthermore, once a patronage network forms a positive cycle, it means that politicians and businessmen do indeed have some conscience.

This closed loop of cronyism reinforces itself; the closer the relationship, the richer the businessman, the easier it is for politicians to obtain political donations, and ultimately the poor will also benefit from development.

The BJP was following this path in Gujarat at that time, and Ron was the wealthy businessman they envisioned.

Once this collaboration is successful, others in the Grace Network will consciously protect Ron's interests.

This creates a closed loop, which will become increasingly stable.

Yes, that's why Ron was willing to spend ten million rupees to support the BJP's election campaign.

He knew that Gujarat would be under their rule for a long time to come.

Merchants in the patronage network are usually locals; people from within the network are more trustworthy.

Ron's reputation is a significant factor in his ability to get in now, in addition to the uncertainty surrounding the election outcome.

Dr. Su is a good person, everyone knows that.

The longer a rumor circulates, the more deeply it resonates with people.

Moreover, Suer Electric Appliances has already made a name for itself; it's not only high-quality and inexpensive, but it's also a genuine domestic product.

After the two sides reached an agreement, Ron did not leave Gujarat immediately.

In the following days, he began to give interviews, such as in newspapers, magazines, or on television programs.

Since the government fully relaxed its policies in 91, Gujarat has also become its own television broadcasting company.

Ron's appearance in the media was simply to say a few good words for the BJP.

These were the agreed-upon conditions between the two parties. With the election approaching, all forms of propaganda must be employed.

Of course, we can't be so definitive. For example, regarding the construction of the Suer Electric factory, it's currently only said that it's still in the investigation stage, but the talks with Adniwa have gone very well.

That's enough. Send a signal to the outside world, and that's enough.

Because of these events, Ron spent more than half a month in Gujarat.

By the time he returned to Mumbai, it was already December. He had no choice but to come back; Suer Electric Appliances had just launched new products.

As early as two months ago, the 18-inch line transported from Dongda University began assembly, and after it was debugged, another month was spent preparing the goods.

Now, everyone at Suer Electric is very confident, and they dare to stock up on large quantities of 18-inch TVs, which are slightly more expensive.

One of the most important reasons for this is that the goods from Dongda University are really cheap.

"Boss, after research, the marketing department plans to price the 18-inch TV at 6000 rupees, sticking to the low-price strategy you set."

“It’s 5999 rupees,” Ron corrected him.

"Yes, yes, yes, you're still the best, boss!"

"What about the cost?"

"2100 rupees, mainly for the picture tube part."

"It's not bad, it's more profitable than the 14-inch model."

According to market principles, the higher the price of electronic products, the greater the profit.

For each of these 18-inch televisions shipped, Suer Electric makes approximately 2400 rupees.

It's quite promising; if the shipment volume keeps up, it's even more attractive than the 14-inch model.

Where's the TV?

"it's here!"

Ashish fawned over and brought over the latest 18-inch TV.

I have to say, having gotten used to 14-inch screens, I don't find anything wrong with them.

However, when the two sizes are placed side by side, the difference becomes immediately apparent.

There is beauty in the grand; humanity's aesthetic pursuit is so simple and unpretentious.

“This generation has made some improvements. Boss, do you see that the screen is much flatter than before?” Ashish said, pointing to the television.

"Is this a flat-screen TV?"

"Boss, you really know your stuff! They say it's because of a technological upgrade; the electron beam tube is shorter, so the screen can be made flatter."

"Good, is the CRT production line sorted out yet?" This was another key concern for Ron.

"The glass tube forming furnace and vacuum exhaust system are a bit troublesome, but they'll definitely be fine next year. The people at Tokyo University are working on it, and they're fast."

"This matter is more important than the assembly line, and we will try our best to meet any conditions they have."

“Yes, boss.” Ashish nodded in agreement.

The picture tube is a core component. If Suer Electric can solve its problem, it will no longer have to worry about being held back by the industry.

This is a crucial step towards self-reliance, and Ron is willing to spend more money if necessary.

The price of an 18-inch TV is still a bombshell for its competitors, even cheaper than their 14-inch models.

How can you play like this?
Ron didn't care; he just wanted to take over more of the market.

When the market is fully liberalized in the future, an even more brutal price war will ensue.

After looking at the 18-inch black and white television, Ron went to NEC's color television production line.

Yes, there are two new products being launched, and the joint venture's 18-inch color TVs have also begun mass production.

Oda couldn't wait any longer; he was eager to break into the Indian market.

It has to be said that in this day and age, the technology of ordinary people is truly impressive.

The clarity and color are a qualitative leap compared to black and white televisions.

"Mr. Suer, how is it?" Oda asked smugly, fiddling with the remote control in his hand.

This is a high-end product; all the old mechanical knobs and such have disappeared.

The TV has a very narrow bezel, which makes the screen appear larger.

"Very good." Ron sighed, there was still a gap.

“We believe that a price of 22000 rupees is reasonable.”

18000 rupees.

"What?" Xiaotian exclaimed anxiously, "Mr. Su, aren't color TVs a luxury item in India? If that's the case, we don't need to go for the low-price route."

"More than 2 rupees, that's almost the same price as a genuine imported product. Tell me, why do they buy joint venture products?"

"But the technology is the same."

“Indians don’t think that way. The potential consumer group for color TVs are all educated. They believe that foreign workers are more reliable, even if all the technology and materials are the same.”

"Why?" Xiaotian asked, puzzled.

"Because the moon is rounder abroad."

"Nani?"

“It’s settled then.” Ron waved his hand; he was the major shareholder of the joint venture.

As the year draws to a close, he still has many meetings to attend, such as the continued expansion of Suer Electric's product line.

Ron and his team are now targeting juicers and rice cookers, products that are very promising in India.

Because Indians enjoy juicing fruit, and the South Asian subcontinent is also a major fruit-producing region.

The same goes for rice; Indian basmati rice is internationally renowned.

Choosing these two products was entirely based on local conditions.

However, before it was decided which company's technology to introduce, a flood of news suddenly appeared.

On January 1, 1995, India was about to join the World Trade Organization.

(End of this chapter)