Niti Aayog member Rajiv Gauba calls for light-touch regulation for growth | Economy & Policy News

India needs a decisive shift towards light-touch regulation to sustain the high growth required for Viksit Bharat by 2047, Niti Aayog Member Rajiv Gauba said on Saturday.

 

Addressing a plenary session on “Regulatory Oversight in an Age of Disruption” at the 5th Kautilya Economic Conclave, Gauba said the challenge for policymakers was not to choose between regulation and growth, but to develop regulations that manage risks while supporting innovation, competition and investment.

 

He said the goal should be a state that is “firm where risks are high, and light-touch where risks are low”, but predictable in both cases.

 

Gauba said regulatory requirements should be calibrated to the nature and consequences of the risks involved. Regulators must carefully assess whether new rules are warranted before intervening in new and rapidly evolving sectors and avoid attempting to prescribe solutions for every possible failure, he added.

  

He also called for greater coordination among regulators to address overlapping mandates, avoid duplication and close regulatory gaps as businesses increasingly operate across traditional regulatory domains.

 

Gauba said regulatory independence must go hand in hand with accountability. While regulators need autonomy to take difficult decisions free from undue influence, public confidence requires transparent decision-making, clear procedures, effective review mechanisms and accountability for regulatory performance.

 

He also stressed the need to strengthen the capacity of the state as markets and technologies become more sophisticated. Regulators need specialised expertise, he said, calling for stronger analytical capabilities, specialised talent and structured engagement with industry, academia and technology institutions.

 

Gauba said geopolitical uncertainty, disruptions to trade routes and global supply chains, and the increasing use of tariffs, export controls and investment restrictions as strategic instruments were reshaping the economic landscape.

 

At the same time, technological change is advancing faster than many institutions and regulatory frameworks can adapt, particularly in areas such as artificial intelligence, cybersecurity and digital technologies.

 

He said modern business models increasingly span multiple sectors and technologies, making traditional boundaries between industries less relevant. Regulatory frameworks, he said, must evolve to address interconnected risks without creating fragmented or conflicting obligations.

 

Linking the regulatory approach to India’s growth trajectory, Gauba said sustaining the high growth needed for Viksit Bharat by 2047 would require a decisive shift towards light-touch regulation, consistent with Prime Minister Narendra Modi’s governance philosophy of Trust Based Governance, or Jan Vishwas.