Watch on Trade Practices

THERE IS LITTLE to be gained now from disputing the merits of setting up a Commission to regulate monopolistic and restrictive trade practices since the Government has resolved to establish one. It is going to be a permanent authority, to be called the Monopolies and Restrictive Trade Practices Commission. It will have statutory powers in regard to restrictive trade practices but there is no indication of whether it will investigate these practices on its own initiative or only on a reference from Government or on an application from any aggrieved party. Moreover, the Government resolution states that in respect of "productwise concentration" which alone will attract the statutory powers of the Commission, its advice would "enable the Government to terminate practices found to be monopolistic", which implies that the Commission's judgment will not be mandatory, as had been recommended by the majority of the Das Gupta Commission. In matters like the expansion of existing concerns, diversification, mergers, etc, i e problems of "countrywise" or "interindustries" concentration, the expertise of the new Commission will be available to the Government and the courts in exercising the powers vested in them by law. Since the building up of such expertise covering the entire range of industrial policy decisions will take considerable time, it is obvious that references on these matters would be made to the Commission only where Government departments feel that a judicial certificate of moral character would be a useful safeguard for administrative decisions, never mind the further delays it might entail.

Government has also announced that industrial licensing would henceforth be biased in favour of new and smaller enterpreneurs, particularly in well established industries and that big business would be expected to display its ability and initiative in the newer and more difficult industries. Financial institutions would be directed to encourage new enterpreneurs and discourage excessive concentration. The public sector would keep its countervailing role in view. And new and small concerns would not be hindered by the regulation of intercorporate loans and investments. The government does not, however, propose to take any measures that would tend to hinder growth.