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India Unshackles Industries: Deregulation Boosts Growth
10 Jan
Summary
- India is simplifying regulations to stimulate economic growth.
- New Labour Codes replace 29 archaic laws, benefiting MSMEs.
- RBI and SEBI are easing norms for financial sector participants.
India is implementing a significant deregulation strategy to overcome persistent low growth and stimulate its economy. This initiative aims to remove fragmented and excessive regulations that could stifle innovation and economic activity, particularly in a de-globalizing world.
The real economy benefits from the consolidation of 29 archaic labor laws into four new Labour Codes. Micro, Small, and Medium Enterprises (MSMEs) are central to this project, receiving faster refunds, simpler registration, and improved access to bank capital. Minor economic offenses have also been decriminalized.
In the financial sector, regulators like the RBI and SEBI are easing norms for quicker listings, overseas borrowing, and foreign investments. A new Deregulation Committee, announced in early 2025, is set to further this agenda, balancing the need for regulatory oversight with economic dynamism.
