NITI Aayog Advocates Deregulation As Key To India's Next-gen Reforms
The economist, however, noted that measures such as goods and services tax (GST), insolvency and bankruptcy code, and a liberalized foreign investment regime had reshaped the economy and opened up sectors once considered off-limits to private enterprises, including defence, space and now nuclear energy. “There is a need to systematically review laws, regulations and administrative processes,” he said
New Delhi: The government think-tank, Niti Aayog on Thursday pitched for deregulation in the next-generation reforms, making rules and laws simpler and hassle-free. “There should be a focus on ‘nuts-and-bolts’ reforms, on doing away with the licence approval, permission and frequent renewals regime that prevails in different avatars,” Niti Aayog member Rajiv Gauba said, while speaking at the Global Fintech Fest 2026.
The economist, however, noted that measures such as goods and services tax (GST), insolvency and bankruptcy code, and a liberalized foreign investment regime had reshaped the economy and opened up sectors once considered off-limits to private enterprises, including defence, space and now nuclear energy. “There is a need to systematically review laws, regulations and administrative processes,” he said.
This work, Gauba said, is being carried out by a high-level committee, guided by the philosophy of trust-based governance espoused by the Prime Minister. “Many important reforms fall in the domain of states and municipal governments and point to the work being done by the deregulation task force, carrying the trust-based governance principles down to the state and city level,” he said.
Citing the scheme for special assistance to states for capital investment and the urban challenge fund, Gauba also said that the Union government’s approach is cooperative federalism with a competitive edge, where scheme incentives are linked to reform milestones and projects are selected through challenge mode. On fintech, India's phenomenal growth in the sector and how it has contributed to financial inclusion and access,” he said.
Gauba cited India's digital public infrastructure - from Aadhaar and UPI to DigiLocker and the account aggregator framework – as a model that the world can replicate. “The regulation in technology-driven sectors should strike a dynamic balance between protecting public interest and allowing innovation to flourish,” he said.
“Regulatory frameworks should be principles-based, technology-neutral and proportionate to risk, while promoting competition, ensuring non-discriminatory access to underlying infrastructure and improving information symmetry,” he added.
