Tata, the Indian company that made worldwide headlines with its $2000 Nano car, now plans to build 1000 tiny apartments outside Mumbai. It would also start such projects in Chennai and Kolkata and subsequently to other Tier-I and tier-II cities. Tata group has once again caught the attention of the world media with its announcement of the launch of a low-cost housing programme. According to the Tata Group, the houses will cost less than Rs.4 Lakh. This is an example, how market mechanism supply goods for poor.
There is enormous wealth at the bottom of the pyramid. In his 2006 book “The fortune at the bottom of the pyramid”, Mr. Prahlad describes the people at “the bottom of the pyramid” as those 4 billion people living on less than $2 per day. He believes that embracing innovative, low-cost services have wider benefits for the economy, for example, low-cost housing, affordable educational hubs, and reliable health care facilities. Nano products are low price products. It is affordable to low-income people that raises their capabilities to goods and services.
Tata Group aims to achieve two things from this venture – first, fulfill its corporate social responsibility and second, make profit. Tata Group is to effectively use this idea of the “bottom of the pyramid”. First they came up with Tata Nano. Now they are planning to repeat the success of the idea with its Nano homes. With this, Tata Group is once again setting a great example as a company that cares not only for profits but also for people.
What the people, who are against capitalism, say about it? This is one of examples that free market system is pro-poor ideology.
There is enormous wealth at the bottom of the pyramid. In his 2006 book “The fortune at the bottom of the pyramid”, Mr. Prahlad describes the people at “the bottom of the pyramid” as those 4 billion people living on less than $2 per day. He believes that embracing innovative, low-cost services have wider benefits for the economy, for example, low-cost housing, affordable educational hubs, and reliable health care facilities. Nano products are low price products. It is affordable to low-income people that raises their capabilities to goods and services.
Tata Group aims to achieve two things from this venture – first, fulfill its corporate social responsibility and second, make profit. Tata Group is to effectively use this idea of the “bottom of the pyramid”. First they came up with Tata Nano. Now they are planning to repeat the success of the idea with its Nano homes. With this, Tata Group is once again setting a great example as a company that cares not only for profits but also for people.
What the people, who are against capitalism, say about it? This is one of examples that free market system is pro-poor ideology.
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