, Columnist
Zombie Firms Are Rising Up Again in India
In regulated sectors like telecom and aviation, unviable companies keep real competition at bay. Healthy incumbents gain.
Rising up.
Photographer: © Marc Mateos/Moment RF via Getty Images
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The living dead are rising once again.
After a temporary decline between 2016 and 2019, corporate zombification has once again been on an upward trend globally, says a recent study by Bruno Albuquerque and Roshan Iyer at the International Monetary Fund. This, the researchers say, leads to “congestion effects.” Healthy firms experience lower investment, employment and productivity growth as unviable rivals waste resources.