The Competition Commission of India (CCI) effectively reflects a shift from the era of Licence Raj to a conducive regulatory ambience for enhancing consumer welfare by encouraging competition in the market. Discuss.
Introduction
Competition Act, 2002 came into force replacing MRTP Act and provided statutory bans for competition in secondary sector. The Act also paved the way for establishment of Competition Commission of India CCI. CCI proved effective in encouraging competition in market.
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Main Body
Situation earlier: (1) Bureaucratic misuse of power - they gave license based on personal preferences. (2) Licence Raj - licence Raj - only powerful got permission to establish industry. (3) Monopoly - created monopoly in product like packed food, drinks, heavy industries like steel, leather, mining etc. Initiatives by Competition Commission of India: (1) Checked monopoly - initiatives to small businessman to establish trade and industry. (2) End to licence system: Fast liberalization reform of 1991 - licence system reduced gradually. (3) Monetary incentives like tax free income to budding businesses. (4) Supported startups - India became leading successful startup hub Rankset 3. (5) Ensure fair trade practices: linked Google. (6) Strengthened consumers - a Consumer forum - a man was paid 10 back, he was charged extra by IRCT.
Thus, commission took various steps to ensure that competition and fair practices govern the market and strengthen consumers.
Conclusion
Commission took various steps to ensure that competition and fair practices govern the market and strengthen consumers.
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Surabhi Yadav
Statutory, Regulatory and Quasi-judicial Bodies
Regulatory Bodies
Competition Commission of India - Shift from Licence Raj to Competitive Market
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analytical and explanatory
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