The government has set up a new 4 member-panel to frame a national competition policy under the chairmanship of Dhanendra Kumar, the former chairman of the Competition Commission of India. This committee will study the impact of the government’s policies on the competitive forces and competition culture in India, reports CNBC-TV18’s Malvika Jain.
Besides Dhanendra Kumar, the committee will have three members—Sudhir Mittal, additional secretary of Ministry of Corporate Affairs, Pallavi Shroff, lawyer from Amarchand and Pradeep Mehta, General Secretary of CUTS International.
Sometimes government policies are formulated but it is not really assessed how they would impact competition in India. For example in the tyre industry, the import duty on raw natural rubber is higher than duty on import finished tyre. So what is happening is the profitability in the market share of tyre manufacturers is getting adversely affected.
This committee will therefore look at the duty structure and other policies of the government. It will make recommendations and suggest suitable action wherein all policies can be put together.