India Improves Rank in Market Distortions Performance Index
#GS-3 #Economy #Growth #Taxation #Market Reforms #National #Current Events
Why in News
- The Competere Foundation recently published a comprehensive report titled "India’s Next Growth Frontier: Reducing Anti-Competitive Market Distortions to Build on India’s 2010-2023 Reform Progress".
Index Ranking and Assessment Framework
- India advanced 25 places on the Market Distortions Performance Index, moving up from 82nd to 57th position between 2010 and 2023.
- The index measures India's national progress in reducing market distortions and creating a more competitive business environment.
- The assessment framework evaluates performance across three fundamental pillars: property-rights protection, domestic competition, and international competition.
- The report examines four critical areas affecting economic integration: competition policy, investment conditions, digital markets, and external regulatory barriers.
Major Reform Drivers
- The Goods and Services Tax (GST) created a unified indirect tax system across the country and reduced trade barriers between states.
- The Insolvency and Bankruptcy Code (IBC) established a time-bound insolvency resolution system, which improved credit discipline and boosted capital allocation efficiency.
Key Recommendations and Significance
- The report recommends implementing an evidence-based competition policy, reviewing sector-specific investment limits, and strengthening economic ties with friendly trading partners.
- These findings highlight that India must continue structural reforms to strengthen its productivity, competitiveness, investment climate, and global market integration.