The Development Of Competition Law In India And Its Evolution
- IJLLR Journal
- 1 day ago
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Achintya Raj Pandey, UPES Dehradun
ABSTRACT
Competition law in India has undergone significant transformation, evolving from a state-controlled economic model to a liberalized framework aligned with global standards. This paper traces the legislative, economic, and judicial journey of competition law in India, beginning with the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act), and culminating in the establishment of the Competition Commission of India (CCI) under the Competition Act, 2002. The paper delves into key milestones, judicial precedents, sectoral applications, and the contemporary relevance of competition law in the digital economy.
1. Introduction
Economic efficiency, consumer welfare, and fair competition are fundamental to a thriving market. In India, competition law serves as a mechanism to prevent anti-competitive practices, regulate monopolistic behaviour, and promote market transparency. The history of Indian competition law reflects the country’s transition from a protectionist economy to a liberalized one post-1991.
2. Historical Context: Pre-1991 Economic System
India's post-independence economic experience was strongly shaped by its colonial history, the then-current global trends in economic thought, and the political ideology of its leadership. Once India gained independence in 1947, its leadership, with then Prime Minister Jawaharlal Nehru at the helm, chose to follow a model of planned economy. The model was based on socialist principles and was intended to attain self-reliance, fair distribution of resources, and balanced regional development.
Central Planning and the Command Economy
The Indian economy was controlled by Five-Year Plans, which determined the investment and production priorities in sectors. The state assumed the role of the major investor, producer, and allocator of resources. Major industries like steel, coal, energy, and telecommunications were dominated by public sector undertakings (PSUs). Private firms functioned under tight licensing systems, wherein the government was required to sanction almost every component of business activity — from technology imports and expansion of capacity to establishment of new units.
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