[op-ed snap] Regulating lightly

  1. Investment and innovation in the digital sector has generated enormous opportunities for the Indian economy
  2. For all the benefits it brings to the economy, consumers, entrepreneurs and businesses, it has flagged a number of new challenges for regulators
  3. Competition Commission of India recognises its critical role in encouraging innovation in this growing area of the economy
  4. Owing to low barriers to entry and high levels of innovation, companies have to work harder than ever to keep customers
  5. Customers can easily switch their allegiance to a better or cheaper competitor
  6. Regulators have to protect competition in their own jurisdiction, focus on domestic consumers rather than competitors
  7. Tech progressive countries like the US and Canada have taken a cautious approach to tech interventions
  8. Longstanding, high-profile tech-related investigations continue in Europe
  9. Indian tech companies such as Flipkart, Zomato, MakeMyTrip, Yatra, Snapdeal, Justdial, Paytm, and others, are growing
  10. Economy is poised on an accelerated growth trajectory mainly due to the country’s technology sector
  11. Indian government is working hard to encourage investment and bring rapid expansion in the technology sector

Back2Basics:

  • CCI: Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices

With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. The goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers.

CCI consists of a Chairperson and 6 Members appointed by the Central Government.

Note4Students:

With increasing focus on digitalization, competition becomes imperative. Therefore, it can be one of the probable questions in UPSC, and hence the op-ed. There was an essay question on competition some years back in UPSC wherein you can introduce multiple angles

Is the growing level of competition good for the youth? -2014

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