In India protection and controls are being replaced by a competitive and de-regulated open economic system. In the pre-reform era, various restraints to competition existed, which have now been relaxed. One key issue in the phase of transition is of ensuring and managing competition, to derive the most out of liberalisation. The objectives of competition policy in India are the creation of an active competitive environment and to aid and abet the process of creating globally competitive firms with enhanced investment and technological capabilities. To achieve these objectives, the government will need to play a proactive role. The task is difficult, because the nation is not starting with a clean slate as various institutional structures continue to be in place. Rather than restricting themselves to issues conventionally covered by competition law, the authors consider, as part of competition policy, all those policy instruments that impinge on the promotion of competition in markets. Consequently, policies relating to trade, investment and technology development also come under the purview of competition policy insofar as they impinge on the process of competition. The formulation and implementation of an effective competition policy in the current context is a difficult task as it needs to be consistent with other policies which are transforming India into a liberal open economy.
Competition Policy In India
Author : Rakesh Basant, Sebastian Morris