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Improving Product Market Regulation in India: An International and Cross-State comparison

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Author Info
Paul Conway
Richard Herd

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Abstract

Competition in product markets has been found to be an important determinant of economic performance in developed and developing countries. This paper uses the OECD's indicators of product market regulation (PMR) to assess the extent to which India's regulatory environment is supportive of competition in markets for goods and services. The results indicate that although liberalisation has improved the regulatory environment to international best practices in a few areas, the overall stance of product market regulation is still relatively restrictive. The regulatory environment is also found to vary markedly across the 21 Indian states for which the PMR indicators are estimated. The paper goes on to review various aspects of product market regulation in India and suggest a number of policy initiatives that would improve the degree to which competitive market forces are able to operate. This working Paper relates to the 2007 Economic Survey of India (www.oecd.org/eco/surveys/india).

Améliorer la réglementation des marchés de produits en inde : comparaison internationale et situation dans les différents États
On sait aujourd'hui que la concurrence sur les marchés de produits est un déterminant important de la performance économique des pays développés et en développement. Utilisant les indicateurs de réglementation des marchés de produits (RMP) mis au point par l'OCDE, la présente note examine dans quelle mesure les dispositions en vigueur en Inde permettent à la concurrence de s'exercer sur les marchés de biens et de services. Il ressort de cette analyse que, bien que l'environnement réglementaire ait été aligné sur les meilleures pratiques internationales dans quelques domaines grâce à des mesures de libéralisation, la réglementation des marchés de produits demeure relativement restrictive dans l'ensemble. Par ailleurs, la situation est très variable suivant les 21 États de la Fédération pour lesquels les indicateurs de RMP sont estimés. Après un examen de différents aspects de la réglementation des marchés de produits en Inde, un certain nombre d'initiatives sont proposées dans le but de faciliter le jeu des mécanismes concurrentiels du marché. Ce document de travail se rapporte à l'Étude économique de l'Inde 2007 (www.oecd.org/eco/etudes/inde).

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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 599.

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Date of creation: 28 Mar 2008
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Handle: RePEc:oec:ecoaaa:599-en

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Related research
Keywords: competition; indicators; product market regulation; concurrence; indicateurs; réglementation des marchés de produits;

Find related papers by JEL classification:
K2 - Law and Economics - - Regulation and Business Law
L5 - Industrial Organization - - Regulation and Industrial Policy
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O25 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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  1. Gupta, Poonam & Hasan, Rana & Kumar, Utsav, 2009. "Big Reforms but Small Payoffs: Explaining the Weak Record of Growth and Employment in Indian Manufacturing," MPRA Paper 13496, University Library of Munich, Germany. [Downloadable!]
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