India today stands at a defining economic moment. The country is simultaneously aspiring to become a developed economy by 2047, positioning itself as a global manufacturing hub, attracting supply-chain diversification, expanding digital public infrastructure, strengthening startups and MSMEs, and deepening domestic consumption. Yet, amid discussions on industrial policy, trade policy, fiscal incentives and infrastructure expansion, one foundational instrument of economic governance remains underutilised: a comprehensive National Competition Policy.More than a decade ago, India had initiated serious discussions on such a policy framework. Around 2011, a draft National Competition Policy was circulated and inter-ministerial consultations were undertaken. However, the proposal did not eventually translate into a formal national policy. At that point, India’s economy was structurally different. Digital markets were nascent, platform economies had not matured, public procurement digitisation was limited, and India’s geopolitical-economic ambitions were still evolving.The circumstances today are fundamentally different. The time has now come to revive and adopt a modern National Competition Policy suited to the realities and ambitions of a rapidly transforming India.Much broader in scopeCompetition policy is often misunderstood as being confined to anti-trust enforcement by the Competition Commission of India under the Competition Act, 2002. In reality, competition policy is much broader. It is a whole-of-government economic philosophy that seeks to ensure that markets remain open, contestable, innovative and efficient across sectors.Trade policy determines external openness. Fiscal policy shapes public expenditure and taxation. Monetary policy manages liquidity and macroeconomic stability. A modern competition policy can emerge as the fourth pillar of economic governance by ensuring that markets function fairly and efficiently within the domestic economy.As India moves towards becoming a multi-trillion-dollar economy, this dimension becomes indispensable. Economic growth alone is insufficient if markets become excessively concentrated, entry barriers become entrenched, procurement systems remain vulnerable to collusion, or regulatory structures unintentionally inhibit innovation.A National Competition Policy would therefore provide a coherent framework through which all ministries, regulators, State governments and public agencies internalise competition principles while framing laws, policies and administrative decisions.Public procurementIts relevance is especially significant in public procurement. Government procurement constitutes a substantial component of India’s economic activity. Bid-rigging, cartelisation and collusive tendering impose hidden costs on the public exchequer and reduce the efficiency of infrastructure and welfare spending. A national policy framework can institutionalise competition assessments in procurement design, tender structuring, vendor qualification systems and digital procurement architecture.Similarly, as India advances industrial policy initiatives such as Production Linked Incentive (PLI) schemes, semiconductor manufacturing, logistics corridors and strategic sector promotion, competition considerations must remain integrated into policy formulation. Industrial policy and competition policy are not adversaries. Well-designed competition frameworks actually strengthen industrial growth by encouraging innovation, productivity and efficient allocation of capital.The digital economy further strengthens the case for such a policy. India has emerged as one of the world’s largest digital markets. E-commerce, fintech, online advertising, app ecosystems, artificial intelligence and data-driven services increasingly influence economic activity. In such markets, concentration can emerge rapidly due to network effects and economies of scale. A forward-looking competition policy would help India balance innovation, investor confidence and market openness without creating regulatory uncertainty.Importantly, a National Competition Policy should not be viewed merely as a legal document. It should function as an economic governance architecture.Institutional innovationsSeveral institutional innovations can be considered in this regard.First, India may consider institutionalising mandatory “competition impact assessments” for major economic legislations, subordinate regulations and large-scale government schemes. Much like fiscal impact assessments, ministries could examine whether proposed measures unintentionally restrict market access, distort competition or create avoidable entry barriers.Second, competition advocacy should become deeply embedded across government. Sectoral regulators, procurement authorities, municipal bodies and state departments require structured capacity-building on competition principles. Many anti-competitive distortions arise not from intent, but from regulatory design deficiencies.Third, States should be integrated into the competition architecture in a more meaningful manner. Many market distortions emerge at regional and local levels — particularly in sectors such as mining, transport, agriculture mandis, local procurement, warehousing and municipal licensing. A cooperative federal framework on competition governance would substantially strengthen implementation.Fourth, competition policy should align with India’s startup and MSME ecosystem. Young enterprises often face barriers relating to access, interoperability, discriminatory conditions and unequal bargaining power. A competition-oriented policy environment can improve market access and encourage innovation-led growth.Finally, India should view competition policy as part of its global economic positioning. Countries increasingly compete not merely through subsidies and incentives, but through the quality and credibility of their market institutions. Transparent, fair and contestable markets improve investor confidence and economic resilience.India has already demonstrated institutional maturity in developing sophisticated frameworks in areas such as insolvency, digital public infrastructure, taxation reform and financial regulation. A modern National Competition Policy can become the next major institutional reform supporting the vision of Viksit Bharat.As India prepares for the next phase of economic transformation, the question is no longer whether competition policy is relevant. The real question is whether India can afford to pursue long-term high-growth ambitions without placing competition at the centre of economic governance.The writer is an IAS officer. Views are personalPublished on June 2, 2026