The Supreme Court cautioned that strict application of competition rules without considering market realities could hinder India’s goal of becoming a global manufacturing hub. A bench comprising Justices Vikram Nath and Prasanna B. Varale emphasized the need for an “effects-based standard” in economic regulations. They noted that India’s success in manufacturing and technology sectors depends on regulations that reward scale and intervene only when genuine competitive harm is evident. The Court also stated that the Competition Act is not intended to penalize success or dominance achieved through innovation and effort. It highlighted that punishing firms solely for their size, without proof of harm, could undermine the law and discourage investment .

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