Deregulation Must Be Focus of Next-Generation Reforms: Rajiv Gauba

NITI Aayog member Rajiv Gauba said India’s next‑generation reform architecture should be defined by deregulation and urged a systematic rollback of licensing, approval and frequent‑renewal regimes to simplify governance and boost innovation, according to an official statement on Thursday. Gauba made the comments at a fireside chat at the Global Fintech Fest 2026, arguing for “nuts‑and‑bolts” reform and a comprehensive review of laws, regulations and administrative processes.

Currently, such work is being carried out by a High-Level Committee, guided by the philosophy of Trust Based Governance espoused by Prime Minister Narendra Modi, he added. He noted that many important reforms fall in the domain of states and municipal governments and pointed to the work being done by the Deregulation Task Force, carrying the Trust-Based Governance principles down to the state and city level.

Citing the scheme for Special Assistance to States for Capital Investment and the Urban Challenge Fund, he characterised the Central government's approach as "cooperative federalism with a competitive edge", where scheme incentives are linked to reform milestones and projects are selected through challenge mode. The fireside chat discussed India's regulatory journey, the need for balance between innovation and oversight in fintech, and the institutional changes needed to sustain growth to achieve the Viksit Bharat vision.

Gauba reflected on the reforms of the past decade, noting that measures such as the Goods and Services Tax, the Insolvency and Bankruptcy Code, and a liberalized foreign investment regime had reshaped the economy and opened up sectors once considered off-limits to private enterprise, including defence, space and now nuclear energy.

Gauba highlighted India’s phenomenal growth in the fintech sector and its contribution to financial inclusion and access. He cited India's digital public infrastructure - from Aadhaar and UPI to DigiLocker and the account aggregator framework – as a model that the world can replicate. He said regulation in technology-driven sectors should strike a dynamic balance between protecting public interest and allowing innovation to flourish. Regulatory frameworks should be principles-based, technology-neutral and proportionate to risk, while promoting competition, ensuring non-discriminatory access to underlying infrastructure and improving information symmetry, he added.

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