If Indian competition laws are strengthened, cost of goods and services to final consumers may decline by about 30 per cent, Madhav Mehra, president of London-based world council on corporate governance (WCGC), told Financial Chronicle. WCCG is a non-profit international network that propagates principles of good corporate governance.

With India aspiring to be an economic superpower in the years to come, stronger competition laws are critical, he said. “Competition laws in India should have been in place much earlier…emerging economies such as India need to take the competition laws very seriously.”

“I would say India is about two years away from having stronger competition laws. I think the 2010–11 period is very important,” he added. As part of an awareness programme on competition laws, WCCG is also looking to interact with Indian corporate behemoths. “There are so many big Indian companies that do not know enough on competition laws. Even the bigger groups do not understand the need for stronger awareness on competition laws,” he said.

In the US, he explained that offenders participating in cartels are given criminal punishments. “Companies (in India) could be treading on dangerous waters if they do not get mergers and acquisitions approved by competition lawyers who understand the subject,” he added.