Through which of the following Acts does the government check restrictive trade?

Correct option is C

The correct answer is (c) MRTP Act. The Monopolies and Restrictive Trade Practices (MRTP) Act, enacted in 1969, was aimed at preventing monopolistic and restrictive trade practices in India. Its primary objective was to curb unfair trade practices and ensure fair competition in the market. It regulated practices that negatively impacted consumer welfare and economic competition, such as cartelization, price fixing, and abuse of dominant positions by large companies.
The MRTP Act played a critical role in controlling monopolistic behavior until it was replaced by the Competition Act, 2002, which introduced more robust mechanisms to handle antitrust issues and promote competition.
Information Booster:
· FEMA Act (Option A): The Foreign Exchange Management Act, enacted in 1999, regulates external trade and foreign exchange but does not address restrictive trade practices.
· Industrial Policy Act 1991 (Option B): This policy marked India's economic liberalization and deregulation but did not focus on restrictive trade practices.
· MRTP Act (Correct Answer): It was the primary legislation to check monopolistic and restrictive practices in India before the Competition Act, 2002.
· Foreign Trade Policy (Option D): This policy governs India's import-export trade but does not directly address monopolistic or restrictive trade practices.