The government is conducting a comprehensive review
of regulations across sectors, aiming to streamline
rules and boost economic growth amid signs of slowdown,
according to multiple sources with direct knowledge of the
matter who requested anonymity.The initiative comes as
part of broader efforts to reduce regulatory burden on businesses,
with officials specifically examining the impact of
existing regulations and the actions of regulatory bodies on
entities under their supervision.Sources indicate that areas
deemed over-regulated will be targeted for reform, though
specific sectors and regulations under review have not been
disclosed.The government has maintained silence on these
deliberations, with queries sent to the finance ministry,
NITI Aayog, and the Prime Minister’s Office remaining unanswered.
This regulatory overhaul is expected to feature in
Finance Minister Nirmala Sitharaman’s upcoming budget
presentation for fiscal year 2025-26, scheduled for February
1.The timing of these reforms appears crucial, given India’s
recent economic indicators.
GDP growth decelerated to 5.4 per cent in the September
quarter, marking its slowest pace in seven quarters,
compared to 8.1 per cent in the same period last year and
6.7 per cent in the previous quarter. Urban consumption
has also shown signs of weakening.
The push for deregulation gained additional momentum
during Prime Minister Narendra Modi’s recent budget
consultation with economists, where improving ease of
doing business emerged as a key priority.
The government aims to create a more dynamic business
environment by reducing compliance requirements, with
specific measures likely to be announced in the upcoming
budget, according to sources familiar with the discussions