NEW DELHI, Nov 24: India and other big emerging economies need to promote competitive markets which is essential for sustainable economic growth, according to a senior European Union official.
Many countries are pushing for good competition practices at the market place amid persisting global economic uncertainties.
Emphasising that competition is an engine for growth, European Commission Vice-President Joaquin Almunia said, “without good competition framework, you will not have sustainable growth”.
“This is a very important element particularly in a country as complex as India,” he told PTI.
The Commission is the executive arm of the European Union, a grouping of about 28 nations.
According to him, competitive markets are needed for dynamic companies as well as to create opportunities for investments and innovation.
Almunia, who is also responsible for competition policy at the Commission, said that markets should be opened up and barriers, including for new entrants, have to be eliminated.
“Every emerging country is different. In all these big emerging countries, there is a need to promote competition and develop the role of competition authorities,” he noted.
He was in India last week to participate in the third edition of the biennial BRICS International Competition Conference.
In recent times, there have been increasing instances of anti-competitive practices worldwide, including India.
Meanwhile, strengthening their co-operation in the arena of competition laws, India and European Union have also inked a Memorandum of Understanding (MoU).
The pact is between the fair trade watchdog Competition Commission of India and European Commission’s Directorate General for Competition.
The agreement provides for enhancement of the effective, transparent and non-discriminatory enforcement of the competition laws in the European Union and India.
Further, CCI and European Union plan to carry out “capacity building initiatives” in the field of competition laws and related issues.
During his speech at the BRICS summit here on Thursday, Almunia had underlined the importance of having a solid competition regime and an effective enforcement system for economic development in developed and emerging jurisdictions. (PTI)
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