Time for light-touch but useful regulation

There's no doubt that light-touch regulation and a reduction in red tape would help with both the ease of doing business and the ease of living.

- NIVEDITA MOOKERJI

Replacing red tape with a "red carpet" for investors has been on the "to-do" list for some time. The recent Economic Survey had it as a central theme, elaborating on the need for the government to get out of the way.

The Union Budget tabled last week carried the theme forward by proposing a committee to explore ways to ease the regulatory burden on stakeholders in non-financial sectors. The committee, which is yet to be formed and there is little information on its members, is expected to present a road map within a year. That may or may not be a tall order but regulations in consumer-facing services need a review so that the user benefits.

Cab aggregators, for instance, must comply with rules and regulations that are clear and useful so that riders are not left high and dry. There's some competition coming from new-age electric ride-sharing players these days, but their presence is still limited. While an increase in the number of meaningful service providers may help the sector become more user-friendly, that could take time.