India had a controlled economy for several decades. In the 1990s, when economic reforms became imperative, one of the issues immediately addressed was the law relating to competition. The earlier MRTP Act had been enacted within a certain economic paradigm and it was no longer relevant even with amendments. The new Competition Act was enacted in December 2002 and received the President’s assent in January 2003. Soon after the enactment, it was embroiled in litigation which went on for over twenty months till the Supreme Court decided the case; thereafter the process of amendment has been going on. The enforcement provisions of the Competition Act cannot come into play till the act is amended and the amendments would be the first step in operationalizing the Competition Commission. Other measures on a parallel basis are necessary to get the Commission going, such as sanction and appointment of professionals and other staff, training, particularly the use of training facilities available both in India and overseas. The Competition Act was part of the process of reform to ensure that Indian markets are competitive and that the benefits of competition go to consumer welfare and economic efficiency. To ensure that the benefits do go to the right channels the two pre-requisites are the Competition Policy and Competition Law. Competition Policy advocates that the government policy should be to shed controls and restrictions, avoid barriers to entry and should be pro-competition. Administrative or bureaucratic decision making and discretionary decision making should be minimized. Once such a competition policy or competition promoting policy is in place, the market should sustain it. This would necessitate a competition law aimed at activities by enterprises to minimize or suppress competition. 

India had a controlled economy for several decades. In the 1990s, when economic reforms became imperative, one of the issues immediately addressed was the law relating to competition. The earlier MRTP Act had been enacted within a certain economic paradigm and it was no longer relevant even with amendments. The new Competition Act was enacted in December 2002 and received the President`s assent in January 2003. Soon after the enactment, it was embroiled in litigation which went on for over twenty months till the Supreme Court decided the case; thereafter the process of amendment has been going on. The enforcement provisions of the Competition Act cannot come into play till the act is amended and the amendments would be the first step in operationalizing the Competition Commission. Other measures on a parallel basis are necessary to get the Commission going, such as sanction and appointment of professionals and other staff, training, particularly the use of training facilities available both in India and overseas. The Competition Act was part of the process of reform to ensure that Indian markets are competitive and that the benefits of competition go to consumer welfare and economic efficiency. To ensure that the benefits do go to the right channels the two pre-requisites are the Competition Policy and Competition Law. Competition Policy advocates that the government policy should be to shed controls and restrictions, avoid barriers to entry and should be pro-competition. Administrative or bureaucratic decision making and discretionary decision making should be minimized. Once such a competition policy or competition promoting policy is in place, the market should sustain it. This would necessitate a competition law aimed at activities by enterprises to minimize or suppress competition.