Major Regulatory Overhaul Planned To Address Economic Slowdown

New Delhi, Dec 30 (KNN) The Indian 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, reported Livemint.

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.

(KNN Bureau)