Indian minister reveals plans for competition policy

Indian union minister for corporate affairs M Veerappa Moily has outlined plans to introduce a new competition policy for businesses in the region in March 2012.

The new legislation will accompany the introduction of reinforced corporate governance guidelines, with a final draft of the proposed competition policy coming before the cabinet in February, reports the Financial Chronicle.

According to Mr Moily, the new policy will supersede many central and state laws and help to unify India as a single national market, while facilitating the elimination of price-fixing and excessive margins for intermediaries.

The minister observed that countries such as the US have experienced significant economic benefits from introducing competition laws in the past, such as improved GDP and reduced inflation.

"Inflation is a demand-supply position. We do not have a proper cold chain. We do not have one national market. Competition will ensure these are in place," he said.

This comes after Mr Moily expressed confidence earlier this month that the new companies bill that is also being debated in India will help to increase accountability among local businesses.