Covid-19 and the resultant recession is expected to create structural overcapacity in certain sectors of the Indian market. Persistent overcapacity of this nature, if left unaddressed, will result in over-investment of capital, over-employment, reduced returns for producers, and failure to achieve efficiency.
Vidhi’s briefing book for 2020, ‘Towards a Post-COVID India: 25 Governance Challenges and Legal Reforms’, highlights that businesses in such sectors must be allowed to take measures to internally reduce such overcapacity. Such cooperation must be monitored by the Competition Commission of India.
Vidhi held a panel discussion on ‘Allowing Crisis Cartels’ on July 24, 2020. Panelists were Dr Magali Eben, Professor of Competition Law, Glasgow University; Co-director of the Academic Society for Competition Law, UK Chapter and Manjushree RM, Research Fellow, Vidhi Centre for Legal Policy.
Moderated by Alok Prasanna, Co-founder and Lead, Vidhi Karnataka.