Next-generation reforms should focus on deregulation: Rajiv Gauba | Economy & Policy News

Next-generation reforms in India should be defined by deregulation, with focus on “nuts-and-bolts” reforms and doing away with the licence, approval, permission and frequent-renewal regime that exists in different forms, NITI Aayog member Rajiv Gauba said on Thursday.

 

Speaking at the Global Fintech Fest (GFF) 2026 in Mumbai, Gauba said the next phase of reforms should focus on a systematic review of laws, regulations and administrative processes to make governance simpler.

 

Reflecting on the reforms undertaken over the past decade, he highlighted measures such as the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC) and the liberalisation of the foreign investment regime. These reforms, he said, reshaped the Indian economy and opened up sectors that were earlier considered off-limits to private enterprise. Defence and space have since been opened up to greater private participation, while nuclear energy is now also part of the reform agenda, Gauba said.

  

Taking deregulation to states and cities

 

Gauba said the government is undertaking a systematic review of laws, regulations and administrative processes through a high-level committee, guided by the philosophy of trust-based governance.

 

He said the reform process cannot be limited to the Centre, as many important areas fall within the domain of state and municipal governments. In this context, Gauba pointed to the work of the deregulation task force, which seeks to take the principles of trust-based governance to the state and city levels.

 

He cited the special assistance to states for capital investment scheme and the urban challenge fund as examples of the Centre’s approach to incentivising reforms. Gauba described this approach as cooperative federalism with a competitive edge, under which incentives are linked to reform milestones and projects are selected through a challenge mode.

 

Balancing fintech innovation with regulation

 

Turning to India’s fintech sector, Gauba highlighted its rapid growth and contribution to financial inclusion and access to financial services. He said India’s digital public infrastructure, including Aadhaar, Unified Payments Interface (UPI), DigiLocker and the account aggregator framework, can be replicated globally.   

 

He said regulation in technology-driven sectors needs to maintain a dynamic balance between protecting public interest and allowing innovation to flourish. Regulatory frameworks, he added, should be principles-based, technology-neutral and proportionate to the risks involved. He further said that such frameworks should promote competition, ensure non-discriminatory access to underlying infrastructure and improve information symmetry. 

 

Gauba also called for greater coordination among financial regulators, simpler and more predictable compliance processes, and continued efforts to reduce friction and interoperability gaps.

 

Building investor confidence and sustaining reforms

 

Gauba said the government has taken steps to attract long-term domestic and foreign capital by strengthening investor confidence in areas such as fair treatment, policy predictability, data governance and cybersecurity, while ensuring adequate space for innovation.

 

He stressed that reform needs to become an integral part of the culture of governance and be supported by long-term and strategic thinking. Gauba said the government, industry and citizens would each have a role to play in sustaining India’s reform and growth momentum and achieving the Viksit Bharat vision.