Excessive competition in any sector can gradually lead to increase the stress in that sector, Finance Minister Arun Jaitley said on Monday. This was a problem that India would increasingly have to deal with as its economy grew, he said.
They wanted multiple players because they would ensure the largest consumer interest,” Mr. Jaitley said at the National Conference on Public Procurement & Competition Law.
Sometimes there can be several other impacts. Excessive competition, at times, can result in pricing of a nature that sector of the economy can itself face stress. Because everybody then tends to follow the leader.And these are all challenges that will emerge as the economy moves further and expands further.
At our present growth rate, in about 10-20 years, our expansion is going to be exponential. And therefore the size of the industry is going to increase, the size of the services sector will increase, and the role of each regulator, while exercising self-restraint, will expand.
Mr. Jaitley said that these emerging situations would require India to look to the global competition model and see how best it can be applied here.
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