Niti Aayog Bats For Modernising Regulations To Boost Efficiency — Profit Exclusive

Niti Aayog—India's public policy think tank—endorses modernised regulations to increase India's growth efficiency, which the nation lacks, unlike most developed countries, according to its top executive.

Modernising regulation in infrastructure and areas of finance like insurance are essential for growth, Suman Bery, vice chairman of Niti Aayog, told NDTV Profit in an exclusive interview. "Efficient regulation is needed for increasing efficiency of the country," he said.

Conversations on deregulation are missing the point currently, Bery said, adding that India's chief economic adviser is focusing on creating a regulatory culture that has a "facilitating rather than a blocking nature".

When it comes to financial regulation, the banking regulator—Reserve Bank of India—and securities market watchdog—Securities and Exchange Board of India—are "very alert, aware and proactive in revising their regulations," he said.

Conversations on deregulation are missing the point currently, he said, adding that India's chief economic adviser is focusing on creating a regulatory culture that has a "facilitating rather than a blocking nature".

Chief Economic Advisor Anantha Nageswaran had earlier indicated that deregulation is going to be a big focus of the Economic Survey.

India is facing significant financing needs, with a substantial portion required to be sourced domestically, he told NDTV Profit. The South Asian nation needs to boost its investment rate by up to 2.5 percentage points of GDP.

Viksit Bharat can only happen if the productivity of capital and labour increases, Bery said.