Is Ex-Ante Regulation A Good Solution To Protect Competition?

The virtues of a free market are now accepted the world over, including by former communist countries such as Russia and China. The open competition it allows between business rivals obliges them to work at highest levels of efficiency and offer the best products and services at the lowest prices. This in turn maximises consumer welfare, indeed total welfare. Historically, India had not been a competitive market; efficiencies were low, consumer interest remained undermined, and as we know economic growth was minimal.

When India began to liberalise its economy there was immense resistance from domestic businesses who argued that this would kill domestic industry in favour of foreign competitors. In truth they were trying to perpetuate protectionism and continue their free run over domestic markets at the expense of Indian consumers. Cartelisation and abuse of monopoly power, even by government enterprises, was rampant. These features of the Indian markets made it