India Rises from 82nd to 57th Global Rank in Pro-Competitive Reforms

Key Facts

• India improved its ranking from 82nd to 57th place in the Market Distortions Performance Index published on 30 July 2026.
• The Market Distortions Performance Index assesses countries based on three pillars: protection of property rights, domestic competition, and international competition.
• India's rise is attributed to structural and pro-competition reforms undertaken between 2010 and 2023, including the introduction of the Goods and Services Tax (GST) on 1 July 2017, and the Insolvency and Bankruptcy Code (IBC) enacted in 2016.
• Other reforms contributing to this improvement include changes in taxation, insolvency resolution, regulatory and trade facilitation.
• The Competition Act, 2002 governs anti-competitive agreements, abuse of dominant position, and combinations in India, enforced by the Competition Commission of India (CCI).
• The Competere Foundation is associated with research related to competition policy and market distortions.
• The Centre for Trade and Investment Law operates under the Indian Institute of Foreign Trade and contributes to policy and legal research.
• GST subsumed several central and state indirect taxes to create a unified destination-based tax regime.
• The Insolvency and Bankruptcy Code established a time-bound process for insolvency resolution and created the Insolvency and Bankruptcy Board of India as the regulatory authority.

Background & Context

The Market Distortions Performance Index evaluates how countries reduce anti-competitive market distortions that hinder economic efficiency and growth. India's advancement from 82nd to 57th rank signals significant progress in creating a more competitive economic environment through reforms. These include streamlining indirect taxes via GST to facilitate trade across states and establishing an effective insolvency framework under the IBC to resolve stressed assets efficiently, thus enhancing the ease of doing business and investor confidence.

The Competition Act, 2002 aims to prevent anti-competitive practices, promote and sustain competition in markets, and protect consumer interests. The enforcement by the Competition Commission of India ensures effective regulation of monopolistic behaviors and combinations.

Research institutions such as the Competere Foundation and the Centre for Trade and Investment Law provide important policy inputs and research support, contributing to the shaping and assessment of competition policy reforms.

Why This Matters for Exams / Exam Relevance

This topic is crucial for exams relating to economics, governance, and current affairs. It encompasses critical reforms, legislative frameworks, institutional roles, and India's recent global performance in improving market competitiveness. Exam questions may focus on timelines, objectives, and impacts of reforms like GST and the Insolvency and Bankruptcy Code, the roles of regulatory bodies such as the CCI, and interpretation of rankings like the Market Distortions Performance Index. Understanding these aspects is vital for comprehensive preparation in economic governance and reforms.

Points to Remember

• Market Distortions Performance Index: India ranked 57th in 2026, improving from 82nd.
• Goods and Services Tax (GST) implemented on 1 July 2017 as a destination-based indirect tax, replacing multiple central and state taxes.
• Insolvency and Bankruptcy Code (IBC), enacted in 2016, provides a time-bound insolvency resolution process.
• Competition Act, 2002 is the statutory framework governing anti-competitive practices, enforced by the Competition Commission of India.
• The Insolvency and Bankruptcy Board of India regulates insolvency processes under IBC.
• Competere Foundation and Centre for Trade and Investment Law contribute to competition policy research and reforms.