Competition sans competitiveness - Need for a policy

The economic reforms of the 1990s are primarily aimed at increasing market contestability under the pretext that it would automatically increase the c ompetitiveness of the Indian industry and the country. However, the term 'c ompetitiveness' necessitates a much wider landscape than merely ensuring fr ee markets. It indicates the capabilities of a firm or. a sector. or a nati on to compete successfully. Analysis shows that there are no systematic eff orts to build capabilities and hence enhance the competitiveness after libe ralisation. The relative neglect of human and knowledge capital makes the c ase stronger for a national competitiveness policy that would increase prod uctivity while maintaining employment levels.