India’s strong growth cannot be taken for granted. With trade tensions, tariffs and global risks, India needs a policy environment that encourages investment and innovation
A business-friendly regime lowers costs and speeds up approvals. A competition-friendly economy goes further, pushing firms to improve productivity, quality and innovation
An IMF study found competition-enhancing product-market reforms accounted for 12-15% of productivity growth across countries. India’s weak business dynamism remains a concern
India’s electronics production has more than doubled in five years
But high import dependence for components shows that supplier networks and domestic value addition need to deepen
Competition is not only about CCI enforcement
Licensing, procurement, tariffs, subsidies and regulation can either foster new entrants or protect established firms from competitive pressure
India’s industrial policies should ultimately create firms that can compete globally without permanent protection
Better regulation, stronger institutions and policy consistency are essential