Tag: Competition Commission of India

India to become fifth largest economy next year, says Arun Jaitley

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is on track to surpass Britain next year to become the fifth largest economy in the world and to emerge among the “big three” global economies by 2040, Finance Minister Arun Jaitley said on Thursday.

He said while India’s per capita income may still be modest, but the size of the economy was very large and growing at a fast pace.

“This year, in shear size, we have overtaken France. Next year, we’re likely to overtake Britain. And therefore we will be the fifth largest (economy in the world),” Jaitley said at the inauguration of the new building of Competition Commission of India.

The Minister said that other economies in the world were growing at a rate much slower than India’s.

“It won’t take a very long time to overtake those economies which are growing at 1 to 1.5 percent if we grow at 7 to 8 percent on an average. And if you look at 2030 or 2040, we are unquestionably going to be – as world projections are – among the big three in size,” he said.

Jaitley added that India still had a lot of avenues for pushing up growth over the next 10 to 20 years.

“For instance, growth is more in the north, south and the western parts of the country. The eastern side still has to grow faster. That’s an area where we will see growth. Women employment is an area where we will see their contribution coming into the growth process.”

The Minister added that as the market and the economic activity expand, the role of the Competition Commission of India would also expand.

“Our population is large, our consumer base is large, the size of the economy and its potential is going to be large, and hence the market is also going to be very large. And if the market is large, we will certainly have aberrations in the market, and therefore the need for you to step in is also going to be there,” he said.

“So over the next 10 to 20 years, your role is going to expand.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CAIT files petition in NCLAT against CCI’s approval to Walmart-Flipkart deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Traders’ body CAIT today said it has filed a petition in National Company Law Appellate Tribunal (NCLAT) against the Competition Commission of India’s decision to approve Walmart-Flipkart deal. Confederation of All India Traders (CAIT) in its appeal said, the body has prayed for reversing the order of CCI as no opportunity of hearing was given to them.

The CCI on August 8 has said that it has approved US retail giant Walmart’s acquisition of Flipkart.

The traders’ body said it had filed detailed objection against this deal before the CCI on several grounds.

“It was alleged that the proposed combination would lead to a huge degree of vertical integration in the market since Walmart is a global retail giant with its own range of multi-brand products and where the B2B market is concerned, there is a high likelihood of Flipkart and Walmart would affect other wholesalers on the platform,” it said in a statement.

In the petition, CAIT said it has mentioned that CCI has in its order ignored the predatory activities carried out by both Flipkart and Walmart in the past.

“The CCI, which is supposed to adjudge the likelihood of impact of a combination if it is approved on the market, completely disregarded the predatory activities undertaken by both parties in India and abroad in the past that were categorically put forth in the objections filed by CAIT,” it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Leniency provisions ‘fantastic’ in acting against cartels, says CCI chief

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As it pursues efforts to ensure fair trade practices in the market place, CCI Chairperson D K Sikri has said the leniency provisions are “fantastic” in enforcement actions against cartels.

In recent months, the Competition Commission of India (CCI) has passed quite a few orders against entities for indulging in cartelisation, especially in bidding process. In some cases, the regulator has slashed the penalties on the entities concerned after invoking leniency provisions under the competition law.

To a query on how leniency provisions have been helping in acting against cartels, Sikri told PTI that it has been “fantastic”.

The CCI chief said that initially, when the competition law was being implemented, entities left “smoking gun evidence” and many did not know what a cartel means.

“When we have issued orders, they are very cautious. In the board room, they don’t leave any evidence. So the only way is through leniency (provisions) and in the cartel there is a fundamental principle, one or the other member will cheat on the cartel,” he said.

He also said that “leniency (provisions) is the way” for enforcement.

Under the Competition Act, enterprises as well as individuals can seek leniency.

Last month, the watchdog invoked leniency provisions wherein quantum of fines were reduced for various entities and for one entity the whole penalty amount was waived off in a case of cartelisation in pricing of zinc-carbon dry cell batteries.

A total fine of Rs 215 crore was imposed on Eveready, Indo National, industry grouping AIDCM (Association of Indian Dry Cell Manufacturers) and their officials for cartelisation in that case. However, the quantum of penalties on Eveready, Indo National as well as their officials were reduced.

The fine was completely waived in the case of Panasonic Energy India, which was also involved in anti-competitive practices.

Earlier this month, the regulator significantly reduced the penalties on four firms and their executives in the case of cartelisation with respect to tenders floated by Pune Municipal Corporation. In this matter, the CCI had imposed a total fine of more than Rs 3.5 crore on six firms and some of their executives.

The CCI has the mandate to keep a tab on unfair business practices across sectors.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow