Competition Law in New India - Building Aatm Nirbhar Bharat

India is a democratic country which means it is of the people, for the people, and by the people.
The Indian Government has the responsibility for the overall development of the country. The
main objective of our government is to build a just, strong, and peaceful society because it is
the people who give the framework to work together. The government frames policies with the
sole aim to ensure that no wrong is done to the citizens and their rights are protected. The vision
is to Make India, Competitive India. In the year 19911, due to the wake of globalization and to
gear up the economy, the Narasimha Rao Government dropped all the industrial policies and
adopted economic liberalization reforms for the development and success of the country. This
led to the removal of all the barriers and controls/restrictions in the market economy which
resulted in the introduction of the concept of Free Markets. This paradigm shift in the economy
brought competition within and outside the markets.

What is Competition?

Competition in the economy/marketplace can be defined as the economic rivalry between the
sellers/businessmen present in the market, engaged in a similar type of product or services they
are dealing in. Competition is very beneficial to the consumers. The sellers keep the prices of
their products lower than the other sellers to attract a larger number of buyers and in return, the
consumers get products at reasonable prices. The government implements policies and
measures to structure the market economy from time to time and to eliminate rivalry existing
between the suppliers. It regulates healthy competition in the markets and keeps a check
whether there is proper availability of goods and services in the economy. A fair competition
amongst the sellers leads to greater efficiency and productivity in the market economy and also
benefits the interest of the consumers.

History of Competition Law in India

1
Statement on Industrial Policy, Ministry of Industry, Government of India, 24 July, 1991, available at:
https://dpiit.gov.in/sites/default/files/IndustrialPolicyStatement_1991_15July2019.pdf.
There, has been a long history of Competition Law in India. The first legislation enacted by the
Parliament with respect to Competition was the ‘Monopolies and Restrictive Trade Act’
(MRTP) Act2 which came into force in June 1970. It dealt with the monopolies existing in the
open market economy. Certain amendments were made to the Act but it still contained
loopholes such as -

 The Act had no provisions with respect to the imposition of penalties on the delinquent
businessmen for the offenses committed.
 The only purpose of this Act was to control monopolies and not to sustain competition
in the economy.
 The enterprises irrespective of their size have to take the government’s approval before
dealing in any kind of corporate dealings.
 The Act did not lay down any extraterritorial provisions in context to the activities
dealing outside the jurisdiction of the country, etc.

Thus, it was analysed that the Act did not fulfil the objectives for which it was enacted and
therefore it was repealed and replaced by the ‘Competition Act 20023.’

Competition Law and Policy

The Competition Law and Policy in India lays down the foundation of effective and efficient
market economy system. The Competition policies should be those which encourage
businessmen to compete in a fair manner, provide wider choices to the consumers, lower the
prices and provide quality and innovative goods at reasonable prices. It can be defined as those
codifications and public policies which are formulated by the government to ensure that there
is freedom of trade in the economy, no undermining ways are adopted that effects or detriments
the society in any way and maximum welfare is done to the consumers. Proper implementation
of these policies promotes healthy competition amongst the businessmen and ensures to
achieve maximum efficiency and productivity in the economy. Good competition stimulates
the growth and progress of the economy. But with the increasing economic growth in this
continuous wake of globalization, numerous unfair trade/anti-competitive practices or
agreements have started taking place in the open market economy through which innocent

2
The Monopolies and Restrictive Trade Practices Act, 1969, Act No. 54 of 1969.
3
The Competition Act, 2002, Act No. 12 of 2003.
consumers are exploited such as the sale of adulterated commodities, quality degradation,
charging more than the actual price, etc. The businessmen/sellers started indulging in such
activities and sometimes they prevent others also to compete fairly. The unhealthy competition
started occurring amongst the sellers. Thus, it became necessary to give these policies a legal
framework so that these must be binding and should not become discriminatory.

To curb this problem and build an equitable society, the Competition Commission of India
(CCI), a statutory body of the government has enforced the Competition Act, 2002 which came
into force on 19th June 2003 by the assent of the President. The Act was enacted to make India,
a new and better India. The objective of the body was to register all the complaints and
eliminate all those activities which have an adverse effect on the economy, to protect the
interest of the consumers, and to ensure that shall be no abuse of a dominant position. The
vigorous enforcement of the competition policies plays a very significant role in sustaining the
effectiveness in the market economy. The essential ingredients laid down in the Act are:

 To prevent monopolies in the market.

 To promote positive and healthy competition between the businessmen.
 To provide the consumers with several product choices.
 To protect the consumers from being exploited by providing freedom of trade.
 To increase the efficiency and development of the country.
 To prevent anti-competitive agreements, abuse of a dominant position, Combinations
Regulation and Competition Advocacy.

So, to enable a stable market, the Act was introduced with a motto, ‘Fair Competition For
Greater Good’. Since March 2020, the market economy has been hit the hardest because for
the first time in the history of mankind, something unusual happened, which no one predicted
and no one can ever forget, which caused millions of deaths across all over the world.
Pandemics have come and gone but the pandemic of a novel disease Coronavirus (hereinafter
referred to as Covid-19) has brought unbearable sufferings to the whole world and devasted
people to the core of their hearts. The nationwide lockdown was imposed by the government
in March 2020. Preventive measures and regulations were made in series to deal against the
Covid-19. There was a loss of millions of jobs, export, and import of goods were shut, non -
availability of transportations, etc. This was a time when the need for local goods, markets, and
supply chains was felt. To keep up with the basic requirements of the citizens of the country,
our government initiated an ‘Aatm Nirbhar Bharat’ mission.
Aatm Nirbhar Bharat: Mission to make India Competitive and Self Reliant

This mission is also known as ‘Self Reliant India.’ It is a mission on which emphasis was laid
down by our Hon’ble Prime Minister, Mr. Narendra Modi Ji to make India a bigger part of a
global economy. The announcement of the campaign was made during the period of the Covid-
19 pandemic with the main vision of a New India by making ‘Vocal for Local’ an integral part
of the Abhiyan. This message was delivered with the main objective to encourage and
appreciate the locally produced goods to achieve the predetermined goals of Aatm Nirbhar
Bharat. It will increase employment opportunities for the people of the country. This initiative
by the government will not only make the country Aatm Nirbhar but will also boost the
economy. India has always been largely dependent on imports from many countries even for
the necessary goods. Due to Covid-19, everything across the world was on halt. Import and
export of goods were stopped as the borders were sealed and also there was no source of
transportation available. During the pandemic, our country faced many serious issues as there
was a shortage of beds, oxygen, ventilators, PPE and Covid kits, etc. Thus, by keeping all the
problems in mind and fulfilling the necessarily required demands, the Abhiyan was started
which led down the strategies to make the country and its citizens independent and self-reliant
in all aspects.

The impact of this deadly Covid-19 pandemic all over the country has largely devasted all
sectors of our economy as well as caused a huge loss to human lives. The nationwide lockdown
forced countries to shut down their borders and put restrictions on the movement of goods and
services. This resulted in an economic slowdown. The policy was announced by the Central
Government as a response to the crisis caused by the Covid-19 and to boost our economy by
promoting local products effectively and efficiently. The government formulated a plan of
action to introduce competition and transparency in all the sectors. Proper steps must be taken
to improve our domestic economy. Covid-19 has presented an opportunity for India to make
rational decisions and wide-ranging reforms to become self-reliant and to shift global supply
chains from China and diversify the Indian economy with a capacity to produce and supply a
wide variety of products and services. This policy does not mean shutting down or erecting the
global trade, rather it seeks to make the Indian economy robust in the long run and to discourage
imports in every sector with the available resources, talents, skills, and manpower in the
country so that India can be Aatm Nirbhar and competitive at the same time. India has the
potential to produce domestic goods to forge ahead and remains globally competitive. The
country has faced the pandemic with a spirit of self-reliance as it is evident from the fact that
there was no production of Personal Protection Equipment (PPE) kits before the pandemic and
today India has the capacity of producing 2 lakh PPE Kits daily.4

The manufacture of several lakh PPE kits, the alliance of automobile industries to produce
ventilators, the DRDO's manufacture of more than 70 Made in India products, IIT Roorkee's
development of the low-cost ventilator Prana-Vayu, and the products developed by start-ups in
Karnataka to combat Covid-19 are just a few examples of Indian scientists, IT professionals,
and technocrats' capabilities5. The national wide lockdown resulted in huge economic loss,
public health, shortage of necessary goods, unemployment, etc., the people of the country
realized the importance and usefulness of the Local for Vocal goods and services. The
production of the necessary local goods will enhance and strengthen the economy and will
reduce our dependency on imported goods.

The five dimensions/pillars laid down by the mission that will make India self-reliant and
competitive are:6

 Economy- An effective and efficient economy is required that can take quantum jumps.
The new economy is based on innovations and the latest technologies.
 Infrastructure – Modern infrastructure that will become the identity of New India.
 System – A modern system is required which is not restricted by rules and regulations.
It should be technology-based which achieves the pre-determined goals of the
economy.
 Vibrant Demography- India is the biggest democratic country and the citizens are the
core strength of a vibrant economy. Maximum well-being of the society is a must. The
citizens can prove to be a competitive advantage for self-reliant India.
 Demand- The demand and supply should be adequate as it is the asset in the economy
and its optimum utilization must be done.

4
Building Atmanirbhar Bharat and Overcoming Covid-19, available at:
https://www.india.gov.in/spotlight/building-atmanirbhar-bharat-overcoming-covid-19.
5
Ibid pt. 4.
6
PM gives a clarion call for Atmanirbhar Bharat, Prime Minister’s Office, available at:
https://pib.gov.in/PressReleasePage.aspx?PRID=1623391.
Economic packages have also been established under this mission of Rs 20 lakh crores which
is somewhat equivalent to 10% of the country’s GDP to financially support the cottage
industries MSMEs, laborers, etc. in the country. The mission will also emphasize the migrants
and poor laborers belonged to an organized and unorganized sector who are affected by this
deadly pandemic. It includes four major factors namely land, labour, liquidity, and laws. Our
Hon’ble Prime Minister, Narendra Modi Ji addressed the nation in his speech that the need for
self-reliance is a must as it will help the country in the long run. Emphasis should not be laid
down in respect to the production of local goods only but the people should also make the
products globally famous. Since the Abhiyan has been implemented, benefits can be seen like
India has already started producing PPE and Covid-19 testing kits and has also developed
Covid-19 vaccines. Before the enactment of this mission, the government had to pay huge
import rates on PPE kits but now the country has its own PPE kit production and it also exports
to other parts of the world. This will help the country to save as well as earn more foreign
currency.

Conclusion

During the hardest times when the world was fighting against the pandemic our country chose
to stand strong and to convert the crisis into an opportunity The markets have been expanded
and several new companies have been established after the introduction of the mission. The
competition policies keep a strict check on the existing companies and makes sure that they
must abide by the laws. The entire mission was initiated with the sole aim to make Aatm
NirBharta and competitiveness go side by side by promoting fair competition between all the
sectors existing in the market economy. As an independent citizen of the country, it is
everyone’s duty that if anyone suspects any businessman/enterprise/seller acting unfairly or
involved in unjust activities then one must report it and ensure that these activities should not
continue to exist. If we all standby together then we can achieve the dream of making India
the 21st Century self-reliant India. Thus, this is how the competition policies play a major role
in building an Aatm Nirbhar Bharat.