NITI Aayog has urged the government to deregulate industries by reducing the complex web of rules, regulations, and permissions that currently restrict businesses and citizens. Rajiv Gauba, a member of the policy think tank, emphasized the need to shift towards trust-based governance and scrutinize existing laws with a focus on simplifying compliance. He made these remarks during a discussion with Kunal Guha, Google’s managing director of commerce partnerships for the APAC region, this week, according to medianama.com.
Gauba highlighted that future reforms should adopt a principle-based, technology-neutral regulatory framework that scales according to risk rather than applying uniform rules. He referenced the digital competition bill under consideration, which aims to impose obligations only on systemically significant enterprises instead of all players equally. He also advocated for licenses to be mandated solely on a risk-based approach, primarily for national security or activities posing serious risks to health or the environment, while recommending automatic registration for other cases.
This approach contrasts with the current regulatory environment, which often involves random inspections and short-term licenses, creating hurdles for businesses. Gauba proposed that necessary licenses should be long-term, potentially lasting up to 10 years, with inspections conducted based on risk assessments. The move aligns with broader efforts to streamline India's regulatory framework to foster innovation and ease of doing business, addressing concerns raised by industry stakeholders about excessive compliance burdens.
The digital competition bill mentioned by Gauba is currently under government consideration, aiming to implement these principle-based regulations. The policy think tank’s recommendations signal a shift towards more flexible governance, with a focus on reducing red tape and enabling smoother operations for enterprises across sectors, according to medianama.com.