What is the purpose of competition policy of India and Competition Act, 2002?

The basic purpose of Competition Policy and Competition Act, 2002 is to preserve and promote competition as a means of ensuring efficient allocation of resources in an economy. Competition policy typically has two elements: One is a set of policies that enhance competition in local and national markets. The second element is legislation designed to prevent anti-competitive business practices with minimal Government intervention, i.e., a competition law. The Competition Act, 2002 seeks to provide, keeping in view the economic development of the country, for the establishment of Competition Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets in India.