After 60 years of development efforts, India is currently one of world's fastest growing economies. It has emerged as a global economic power, the leading outsourcing destination, and a favorite of international investors. In India the tilt towards economic liberalization started in 1985 when the government announced a series of measures aimed at the deregulation and liberalization of industry. These measures, described as New Economic Policy, were followed by drastic changes introduced by the 1991 Industrial Policy Statement of the government.
By and large, Indian industry has upgraded technology and product quality to a significant degree and met the challenge of openness after being protected for so long. The Competition Act, 2002 passed by the parliament seek to establish a pro-competitive legal framework, contain anti-competitive practices and abuses of dominance, and yield better regulation of markets. The Micro, Small, and Medium Enterprises Development Act, enacted on June 16, 2006, provides the first-ever legal framework recognising the concept of enterprise (comprising both manufacturing and service entities) and gives an investment-based definition to the three terms.