Red-tape relief: Six things India’s regulatory reform committee must do

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Subscribe to enjoy similar stories. In 2011, a British bakery was fined for selling metric bread rolls instead of the traditional imperial ones—because, apparently, the greatest threat to public order was a rogue baguette. This kind of regulatory absurdity will not come as a surprise to people in India, and that is exactly why the finance minister’s announcement of a High-Level Committee for Regulatory Reforms (HLC) is a breath of fresh air.

The word ‘regulation’ comes from the Latin ‘regula,’ meaning ‘a straight stick’—but in India, regulations resemble a pretzel, twisted beyond recognition. To untangle this mess, the panel should follow these principles: Cut redundant rules instead of layering new ones, bury outdated ‘zombie laws,’ make inspections predictable, go digital to end the ‘stamp-and-sign’ culture, trust businesses with self-certification, and—most importantly—hold regulators accountable for delays. There are six broad areas where the HLC should intervene.

First, regulatory design is a crucial yet often overlooked aspect of economic governance. While laws, rules and regulations may be well-drafted in terms of language and intent, their structural coherence, consistency across statutes and practical enforceability often remain fragmented. Poorly designed regulations create compliance uncertainties, increase transaction costs and stifle business efficiency by embedding redundancies and contradictions.