Let’s improve how we make laws and frame rules by granting regulatory impact assessments a statutory anchor

Subscribe to enjoy similar stories.Several government committees, apart from the Niti Aayog, have asked for regulatory impact assessments (RIAs) to be institutionalized in India. The statutory backing of a legislative framework can ensure its meaningful use as a tool for assessing the costs and benefits of current and prospective regulatory measures. The inclusion of provisions related to RIAs in India’s recently concluded free trade agreements (FTAs) highlights the urgency to enact a central law on such study-based reports.

Modern FTAs focus not only on border tariffs and non-tariff steps, but also on a range of behind-the-border issues that can affect trade. As a core concept, an RIA qualifies as a good regulatory practice (GRP) in trade terminology. Free trade pacts often include provisions related to GRPs and regulatory cooperation in aid of deal coherence, as regulatory mismatches can act as non-tariff barriers.

Even the draft Plurilateral Agreement on Investment Facilitation for Development has an RIA provision. India has previously okayed GRP cooperation with its trade partners through broad provisions in some of its earlier trade agreements. For example, India’s comprehensive economic cooperation agreement with Malaysia had identified risk management as a good practice to improve the quality and effectiveness of regulation.

However, India’s real tryst with GRP-dedicated chapters in trade pacts began with the India-UK Comprehensive Economic and Trade Agreement (CETA). This also marked the first standalone reference to an RIA in India’s trade relations. Under the UK CETA, both sides have recognized that RIAs may be beneficial when preparing “major regulatory measures.” These measures for India cover only