NEW DELHI: Deregulation is poised to take centre stage in the upcoming Economic Survey, Chief Economic Advisor V Anantha Nageswaran revealed, emphasising its pivotal role in unleashing economic growth and enhancing employment opportunities.
Speaking at Assocham’s Bharat@100 Summit, Nageswaran highlighted how excessive regulations hinder economic activity, citing the example of restrictive building guidelines.
He explained that compliance with numerous setback, parking, and floor space index norms often leaves less than 1 per cent of land available for small and medium enterprises (SMEs) to set up production facilities.
Outdated state laws
“These rules siphon off land usability and increase operational costs,” he said, calling for a rethink on regulatory frameworks at state and local levels to facilitate business growth.
Nageswaran also pointed out that outdated state laws, such as those restricting women from certain occupations deemed hazardous, need urgent reform to foster gender-inclusive employment.
With India facing “disappointing” GDP growth figures for the second quarter of FY 2024-25 at 5.4 per cent, the CEA urged the government to capitalise on this moment to double down on deregulation efforts and enhance state expenditure limits to drive economic recovery and long-term growth.
The focus on deregulation signals a strong push for structural reforms to align with India’s vision of becoming a global economic powerhouse by its centenary in 2047.
