Deregulation To Be A Big Theme For Coming Economic Survey, Says CEA Nageswaran
Chief Economic Advisor V Anantha Nageswaran emphasised that excessive regulations reduce land usability for businesses, highlighting deregulation's role in promoting economic growth.
Deregulation is a big theme for the upcoming economic survey, according to Chief Economic Advisor V Anantha Nageswaran.
"With respect to job creation, policy can do more in terms of deregulation. we still have on our statute books, rules and regulations by states that prohibit women from engaging in certain occupations because they are being dangerous," Nageswaran said, speaking at Assocham’s Bharat@100 Summit ‘Fuelling Bharat's Global Rise.
To boost female employment, Nageswaran said that there needs to be deregulation at both the state and local government levels.
He provided an example, explaining that if Indian businesses were required to comply with all existing building guidelines, small and medium enterprises might find less than 1% of land available for actual production. This is due to the need to account for various regulations related to setbacks, parking space, and the low floor space index.
"The extent of land that will be siphoned off by these regulations will leave very little land left for businesses to actually build a factory building. And naturally, therefore, if you have to comply or not comply, then it will it will incur cost for you to be able to operate," he said.
Last week, After the government release GDP data for the second quarter of the fiscal 2024-25, the CEA had said the government must use the "disappointing" figures to double down on deregulation and enhancing states's expenditure capacity.
