The deregulation sprint: India's push for business-led growth

We need double-digit growth, year after year! It's an ambitious call, but why not? India has the potential, the resources, and the momentum.

- Sunil Kanoria

The post-pandemic rebound was strong, but now, as consumption starts tempering, the country needs a fresh dose of economic adrenaline. The Budget 2025's tax cuts for the middle class, RBI's rate cuts, and an anticipated GST rationalization are all steps in the right direction. But let's be honest: these measures will only sustain a healthy 7% growth rate— commendable, but not transformational.

For India to reach the coveted Viksit Bharat status before 2047, we need double-digit growth, and we need it now. That means more than just policy fine-tuning. It demands a full throttle unleashing of private capital and entrepreneurship, a climate where businesses are empowered, not entangled in red tape.

Tax Cuts and Rate Cuts: A necessary but insufficient fix

Yes, tax relief and lower interest rates will put more money in people's hands. It will nudge consumption upwards, which is always a good sign. But the real question is: Will this alone be enough to fuel India's growth ambitions? Unlikely.

The missing ingredient? Private investment—both domestic and foreign. India needs a wave of capital expenditure (capex) across industries, from infrastructure to manufacturing. The global investment community is already eyeing India as a bright spot amid global economic uncertainty. But they need something more: a regulatory environment that inspires confidence.

Deregulation: The next big reform push

Rewind to 1992—the Dream Budget presented by Dr. Manmohan Singh. That was the moment India unshackled itself from the license-permit raj, setting off an economic transformation that gave birth to a booming middle class. Since then, incremental reforms have followed, but India is still nowhere near the top in global Ease of Doing Business rankings. The reason? Regulatory overhang.