Deregulation Commission: An idea whose time has come

But it will work only if it has both central & state-based regulations within its remit with active participation by all states, writes Dev Bajpai

- Dev Bajpai

In her Budget speech, the Union finance minister stated that the government was determined to ensure that regulations kept up with technological innovations and global policy developments.

A high-level committee to deal with regulatory reforms is proposed to be set up to review all non-financial sector regulations, certifications, licenses, and permissions. The committee will be expected to make its recommendations within a year. The objective is to strengthen trust-based economic governance and take transformational measures to enhance 'ease of doing business', especially in matters of inspections and compliances.

The Prime Minister made it even better. In his address in one of the public functions on his return from the United States, he talked about setting up a Deregulation Commission. This is a welcome move, and shows the seriousness and long-term approach of the government in streamlining regulations.

Ordinarily, big-time regulatory reforms hit roadblocks as they lead to shedding of powers, but the question is: Do we have an option? Also, given the context, this is the right thing to do. Given that it has now come both from the finance minister and the Prime Minister, there is serious intent to it.

Timely initiative

The proposal to set up a Deregulation Commission is the right step, and could not have been timed better. The country is leapfrogging to become the third-largest economy in the next few years, and, in the long run, the goal of Viksit Bharat remains not just aspirational for the 1.4 billion Indians but also something that can be achieved if we do the groundwork and lay the foundation today.

Given that we have more than a thousand regulations, the Commission will have its hands full. A few thoughts for the Commission to consider: