India's ambitious economic goals, including becoming a $5 trillion economy and achieving developed nation status by 2047, face a significant hurdle. According to experts, the country is avoiding a crucial reform that could unlock its true potential: the implementation of a National Competition Policy (NCP).
The Missing Piece in India's Growth Puzzle
While India has a robust Competition Act and an active Competition Commission of India (CCI), these tools are largely reactive. They step in after anti-competitive behaviour like abuse of dominance or cartelisation has already occurred. A National Competition Policy, in contrast, is a preventive and curative framework. It would require the government to screen every regulation, scheme, and policy for its impact on competition before it is implemented, preventing market distortions from taking root.
The need for such a policy is urgent. As highlighted, India missed its original target of becoming a $5 trillion economy by 2025. To reach the Viksit Bharat (Developed India) vision by 2047, the current GDP growth rate is insufficient. A well-designed NCP, acting as a second wave of big-bang reforms post-1991, could be the catalyst needed for faster, more efficient, and innovation-led growth.
A Draft in Limbo and Global Lessons
Despite its potential, India's NCP has been stuck in bureaucratic delays. A draft policy was prepared in 2011 and has remained on the Ministry of Corporate Affairs' website ever since. Even recommendations from Niti Aayog and a recent nudge from the 25th Parliamentary Standing Committee on Finance in August 2025 have failed to revive it.
Other nations have reaped substantial benefits from similar policies. For instance, Australia's NCP reforms are estimated to have increased its GDP by 2.5% by opening markets and enhancing competition. A formal NCP would institutionalize the principle of competitive neutrality, ensuring a level playing field for state-owned enterprises, private domestic firms, and foreign players alike.
How a Competition Policy Would Transform Indian Markets
The implementation of an NCP would bring systemic change to India's economic governance.
First, it would embed competition principles into everyday policymaking. Ministries would have to justify any preferential treatment for incumbents or public sector units transparently.
Second, it would promote risk-based regulation, easing compliance burdens on small businesses while ensuring large corporations are held accountable.
Third, consumers would benefit directly through better prices, more choices, and improved services as markets become more contested and efficient.
The argument that the existing Competition Act is sufficient is a misunderstanding. India has both laws and a formal policy for areas like Intellectual Property Rights (IPR) and environmental protection. A dedicated National Competition Policy would give the Competition Act more teeth, creating a coherent framework to drive investment, innovation, and consumer welfare.
As the article concludes, competition policy is an economic necessity, not a bureaucratic exercise. With foundational reforms like the GST and the Insolvency and Bankruptcy Code already in place, reviving the 2011 draft NCP is the logical next step. India's developed nation aspirations cannot be met by slogans alone; they require the foundation of competitive, efficient, and dynamic markets.
