Pointing out challenges of the growing economy, Finance Minister Arun Jaitley has said that excessive competition at times can result in stress in a particular sector. He also said that with the growing economy, the role of each regulator will expand.
Jaitley said ‘Excessive competition at times can result in pricing of nature that the sector of the economy itself feels stressed because everybody then tends to follow the leader.’ He added that ‘Therefore, what do you do in such situation of this kind. These are all challenges which are going to emerge as economy moves further and expand further.’ He also said if the current growth rate continues for a decade or two, Indian economy expansion is going to be exponential.
The Finance Minister further said the size is going to increase, the size of industry is going to increase, the size of services sector will increase and the role of each regulator while exercising self-restraint will also expand. Explaining the object of the competition law, he said protection of consumer interest was a key pillar of this. He highlighted that the government wanted effective market players, reasonably optimum in number so that the consumer interest is protected. That was the object of the competition law when the state withdraws and leaves the economy to markets.
