Economic Survey 2021 says ‘overregulation’ leads to opaque decision making
The Economic Survey 2021, released on January 29, observed that India’s administrative processes derive less from lack of compliance to regulatory standards, but from 'overregulation'.
“International comparisons show that the problems of India’s administrative processes derive less from lack of compliance to processes or regulatory standards, but from overregulation,” the Economic Survey said.
Overregulation, not simpler regulation, leads to opaque decision making, the survey said.
In a chapter titled ‘Process Reforms: Enabling decision-making under uncertainty’, the survey document talked about overregulation using a study of time and procedures taken for a company to undergo voluntary liquidation in India. “Even when there is no dispute/litigation and all paperwork is complete, it takes 1,570 days to be stuck off from the records. This is an order of magnitude longer than what it takes in other countries,” the survey said.
Read More at