Inspector raj rollback: Let's turn this small start into a crescendo

India has begun to clear up a regulatory thicket that should proceed apace to give all our businesses more space to breathe

- NIRANJAN RAJADHYAKSHA

The past few months have seen a spate of policy changes aimed at reducing the regulatory burden on Indian enterprises.

Here are a few examples. The government has withdrawn 114 quality control orders that were ostensibly put in place to protect consumers but in effect hurt access to cheaper imported inputs for smaller companies, though far too many such orders still remain. The government has notified its four new labour codes covering wages, industrial relations, social security and working conditions nearly six years after they were cleared by Parliament.

Meanwhile, Niti Aayog has reportedly finalized a report that suggests radical changes in the way government agencies oversee the operations of companies, ranging from registrations to inspection, based on a culture of trust rather than suspicion. Several Indian states have been changing their rule books on everything from building bye-laws and working hours for women to regulations on land use. And the Reserve Bank of India has repealed 9,446 circulars to replace them with 244 master directions to the lenders it regulates.