MRTP Act (1969) was introduced for avoiding concentration of economic power in the hands of a few. The full form of MRTP is ..................

The correct answer is - Monopolies and Restrictive Trade Practices

Key Points

• Monopolies and Restrictive Trade Practices (MRTP) Act
  • The MRTP Act was enacted in 1969 by the Indian government.
  • Its primary objective was to prevent the concentration of economic power in the hands of a few entities and promote equitable distribution of wealth.
  • It aimed to control monopolistic practices, restrictive trade practices, and unfair trade practices.
  • By regulating monopolies, the act ensured that businesses operated in a manner conducive to consumer welfare and economic growth.
  • The act applied to both public and private enterprises.

Additional Information

• Key Features of the MRTP Act
  • Defined and regulated monopolistic trade practices, which refer to practices that prevent competition or harm consumer interests.
  • Addressed restrictive trade practices, such as actions limiting competition, price fixing, or creating barriers to entry.
  • Covered unfair trade practices, including misleading advertisements, false representations, or exploitation of consumers.
• Evolution of the MRTP Act
  • The act was later replaced by the Competition Act, 2002 to modernize and strengthen the regulatory framework for promoting competition.
  • The Competition Act focuses on anti-competitive agreements, abuse of dominant position, and regulation of combinations like mergers and acquisitions.
• Impact on Indian Economy
  • Played a crucial role in curbing exploitative practices by large corporations.
  • Enhanced consumer protection and ensured fair competition among businesses.
  • Helped establish a foundation for modern economic policies promoting transparency and fairness.