National Competition Policy (India)

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National Competition Policy is formulated by the Government of India with a view to achieve highest sustainable levels of economic growth, entrepreneurship, employment, higher standards of living for citizens, protect economic rights for just, equitable, inclusive and sustainable economic and social development, promote economic democracy and support good governance by restricting rent-seeking practices. [1] Dhanendra Kumar was the Chairman of the committee which was entrusted the task of formulating India's National Competition Policy. [2] [3]

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Contents

Objectives

The policy is aimed at ushering in a second wave of financial reforms. [4] The salient features of the policy are stated below:

  1. To guarantee consumer welfare by encouraging optimal allocation of resources and granting economic agents appropriate incentives to pursue productive efficiency, quality and innovation
  2. To remove anti-competition outcome of existing acts, harmonize laws and policies of Centre and State and proactively promote competition principles
  3. Strive for single national market.
  4. Establish a level playing field by providing competitive neutrality'.

See also

Competition Commission of India is a statutory body of the Government of India responsible for enforcing The Competition Act, 2002 throughout India and to prevent activities that have an appreciable adverse effect on competition in India. It was established on 14 October 2003. It became fully functional in May 2009 with Dhanendra Kumar as its first Chairman.

The Competition Act, 2002

The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act, 1969. Under this legislation, the Competition Commission of India was established to prevent the activities that have an adverse effect on competition in India. This act extends to whole of India except the State of Jammu and Kashmir.

Dhanendra Kumar

Dhanendra Kumar is a civil servant, former Executive Director at World Bank and first Chairman of Competition Commission of India. He is currently assisting Indian Institute of Corporate Affairs as Principal Advisor and Chief Mentor of School of Competition Law – the upcoming National Centre of Excellence.

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References

  1. "National Competition Policy Constituted". http://www.caclubindia.com. 10 January 2012. Retrieved 1 August 2012.External link in |publisher= (help)
  2. "MCA draft - Ministry Of Corporate Affairs".
  3. "Second Round of Consultations on the Revised Version of National Competition Policy Begins Tomorrow".
  4. grain-prices "New competition policy will bring down food prices: Moily" Check |url= value (help). The Economic Times. 6 February 2012. Retrieved 1 August 2012.