New Delhi: Union Minister of Corporate Affairs M Veerappa Moily on Tuesday said the proposed National Competition Policy would be a "proactive and positive" effort to build a competition culture in the economy.
"We are in the process of releasing the National Competition Policy which seeks to unleash the fullest growth potential of our economy. I would prefer to call this the 'second generation of economic reforms'.
"While the Competition Law is a regulatory instrument to check the prevalence of anti-competitive practices, a competition policy is a proactive and positive effort to build a competition culture in the economy," Moily said.
The Minister, who was speaking at a conference on 'Competition Law in Emerging Economies', organized by O P Jindal Global University and the Asian-African Legal
Consultative Organization, applauded the role of Competition Commission of India (CCI) in enforcing competition law in a "coherent, transparent and economically sensible fashion".
He, however, said there is a need to avoid possible conflicts between CCI and other sectoral regulators.
"I would put it this way, the need of the hour is synergized interaction between the various sector regulators and agencies," he said.
He pointed out that a strong competition policy is essential for a "dynamic and healthy market economy.
Moily said competition policy has important linkages with various governmental policies like fiscal, trade, labour, and consumer policies and it can help in dealing with inflation.
Monopolistic conduct and abuse of dominance poses significant loss to both consumers and producers, he added.