Free markets may not create competition on their own: CEA Nageswaran

'Morality, ethics should undergird free-market economy'

Free markets do not necessarily create a competitive environment, and it is the responsibility of competition agencies and regulatory authorities to ensure such conditions, Chief Economic Advisor (CEA) V Anantha Nageswaran said on Friday. He said the implementation of certain regulations could perpetuate existing market dominance and sometimes end up harming new entrants.

“Regulators must not hesitate to intervene in order to keep markets free from entry barriers,” Nageswaran said while addressing a conference organised by the Competition Commission of India. “Competition unleashes the true potential of an economy and helps break free from the status quo... Free markets on their