India has moved up 25 places in the global Market Distortions Performance Index (MDPI), rising from 82nd to 57th between 2010 and 2023. The rise reflects sustained structural and pro‑competitive reforms such as the GST and the IBC. The findings were released by the Competere Foundation during a seminar organised by the CTIL at the India Habitat Centre.
Key Developments
- India’s global ranking improved to 57th in the MDPI, up from 82nd.
- Reforms highlighted include GST, IBC, better regulatory environment and modernised trade‑facilitation systems.
- The report stresses evidence‑based competition policy and sector‑specific review of investment restrictions.
- Panelists from legal, academic, industry and policy circles discussed the reform journey and future challenges.
Important Facts
The MDPI assesses three pillars: property rights protection, domestic competition and international competition. The report notes that:
- Implementation of GST streamlined indirect taxation.
- The IBC reduced credit bottlenecks and improved ease of doing business.
- Regulatory reforms and digital‑market policies enhanced domestic competition.
- Efforts to lower external regulatory barriers boosted India’s participation in global trade.
Exam Relevance
Understanding the MDPI and the reforms that moved India up the rankings is vital for GS3 (Economy) and GS4 (International Relations). Aspirants should link these reforms to:
- Improved competitiveness and productivity – core topics in economic development.
- Policy‑making frameworks that balance market freedom with consumer welfare – relevant for competition law questions.
- India’s strategy to integrate with the global economy – a recurring theme in international trade and diplomacy.
Way Forward
To sustain the upward trajectory, the report recommends:
- Continuing an evidence‑based, effects‑oriented approach to competition policy.
- Periodic review of sector‑specific investment restrictions with a focus on consumer welfare.
- Strengthening cooperation with like‑minded trading partners to dismantle remaining regulatory barriers.
- Further modernisation of trade‑facilitation infrastructure, especially in digital markets.
For UPSC candidates, tracking these reforms helps answer questions on economic reforms, trade policy, and the impact of regulatory changes on growth.