Economic Survey 2024-25 Advocates Deregulation to Boost India’s Business Climate

The Economic Survey 2024-25 has underscored the need for India to unleash its economic potential by reducing the cost of doing business through deregulation. The report asserted that lowering business costs through regulatory reforms would play a crucial role in accelerating economic growth and job creation, particularly amid ongoing global challenges.

Emphasizing the importance of minimizing government intervention, the survey highlighted the necessity of allowing businesses to focus on their core operations without excessive regulatory oversight. It made a strong case for significantly rolling back regulations, advocating for a shift away from micromanaging economic activity and toward risk-based regulatory frameworks.

On the topic of deregulation, the survey recommended a fundamental change in regulatory philosophy—from an approach where businesses are considered guilty until proven innocent to one where they are presumed innocent until proven guilty. It further stressed that stepping aside and trusting businesses to operate efficiently was not just an option but an imperative necessity.

India’s complex regulatory environment has long been a challenge for both large and small businesses. Findings from the MC-Deloitte CEO survey revealed that approximately 60% of CEOs favored an online, single-window clearance system, along with simplified compliance processes for trade and investment across borders. Additionally, an analysis by TeamLease Services indicated that businesses in India must adhere to nearly 70,000 compliance requirements.

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