Call to adopt national competition policy

The Hindu, October 12, 2013

Terming it the need of the hour, Competition Commission of India (CCI) chairman Ashok Chawla has called for adoption of a National Competition Policy to help address entry barriers in public and private sectors.

“It was important to adopt the policy in the country where the state still plays a major role in the economic sectors. The policy paradigm in the liberalised era still has a tilt towards control by the state,” he said while speaking at a seminar on “National Competition Policy: Second Big Wave of Reforms” organised by Consumer Unity & Trust Society (CUTS) International.

Mr. Chawla said the policy will lead to more robust economic welfare and provide governance to the country. “The policies prior to 1991 have been institutionalised and it is difficult to demolish such institutions. Thus, we need independent agencies to review such policies to make them competition compliant and more relevant,” he said.

Speaking at the event, Planning Commission member Arun Maira said redesigning of institutions is needed to address challenges facing the policy.

National Competition Policy committee former chairman Dhanendra Kumar was of the view that while competition in markets will be monitored by the CCI, anti-competitive outcomes of government policies, rules and regulations need to be reviewed through implementation of the competition policy. The policy broadly refers to government measures, policies and regulations aimed at controlling the behaviour of enterprises and structure of markets.

CUTS secretary general Pradeep S. Mehta gave an overview of a recent study by CUTS which advocates certain interventions that can help remove competition distortions that exist in the markets.

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