Competitive Dimensions of State-Owned Enterprises in India

Why is your research important?

The Indian economy has been built on the backs of its State-Owned Enterprises (SOEs), which have historically occupied a dominant role in several key industries such as telecommunications, energy, power, and financial services. As India moves from an era of socialism post its independence from Britain, to one of liberalisation and adoption of free market principles, it is imperative that any advantages enjoyed by Indian SOEs are eliminated. The concept of competitive neutrality advocates for a regulatory framework in which SOEs and private enterprises subscribe to the same set of rules, and where State contact or influence does not bring any competitive advantages to any market participant. Although India’s current competition legislation applies to all enterprises, there is no codified policy of competitive neutrality precluding the existence of benefits accruing to SOEs due to State influence. Such benefits can cause market distortion to both domestic and international competition. Moreover, there is no policy on how SOEs are to be divested to prevent situations of rushed divestments that would lead to concentration of market power in the hands of existing players.

This research examines potential instances of market distortion by Indian SOEs, both nationally and internationally, with a focus on the sectors of telecommunications, energy, and power. Specifically, the research deliberates upon the need for a multi-jurisdictional competitive neutrality policy and discusses approaches to the suitable divestment of SOEs.

Supervisors:

Areas of expertise:

Competition Law, Corporate Law, International Trade Law