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Chasing the Dragon: Will India Catch Up with China? by Mohan;Singh Guruswamy, Zorawar Daulet

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APPENDIX

Policy Note

The Vital Role for Anti-Trust in India

The role of anti-trust is perhaps one of the most powerful policy instruments available to the state in a market economy. Consistent with our theme of a strategic economic policy for India—antitrust policy assumes critical salience, especially when the often competing policy goals of preserving consumer welfare (preventing abuse of dominant market power) at home clash with the strategic objective of encouraging large globally relevant corporations to thrive.

I.

Historical Backdrop: The overwhelming presence of the government (public-sector units—PSUs) in several sectors of the economy meant that independent regulators were rarely required since the state controlled high market shares ...

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