Erase the trust deficit

The govt should pay heed to the sensible suggestions made in the Economic Survey

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One of the reasons the Indian economy has not been able to grow at a sustained 7-8% is that it is difficult to do business here. Smaller enterprises, in particular, struggle to comply with permissions and clearances – more than 60,000 according to one estimate. While the economy may have muddled through thus far, the Economic Survey for 2024-25 believes there is no other choice but for the government to “get out of the way”, especially for small businesses. A “business as usual” approach, it cautions, runs the risk of not just growth stagnating but the economy stagnating. Given how globalisation is on the retreat, any meaningful acceleration of the economy – and job creation – will simply not be possible, it contends, without a “deregulation stimulus” that cashes in on the demographic dividend. However, erasing the trust deficit and bringing in more flexible rules will require central as well as state governments to lead the way. Most small businesses will agree with this assessment as the red tape and bureaucratese that dog them are legion.