India’s Unique Growth Pattern
Unlike most countries, India's economy grew more from services than manufacturing.
Services now form 55% of India’s gross value added, up from 33% in 1980.
Manufacturing’s share barely changed — from 16% to 17.5%.
This happened because manufacturing was heavily regulated, while services were mostly ignored by regulators — until now.
Regulatory Challenges for Businesses
Service firms now face outdated, confusing, and sometimes absurd regulations.
Examples include demands for “snake-pits” in offices or police threats over installing electricity.
These incidents show how corruption and red tape hurt business operations.
The 2025 Budget’s focus on regulatory reform is a step in the right direction.
Needed Reforms for Business and Growth
Replace inspections and NOCs with self-certification, especially for low-risk areas.
Use certified third parties for approvals (like building or fire safety).
Land and labour reforms are crucial: ease land use rules, simplify zoning laws, and modernise labour codes.
Introduce tech-based auto-approvals (e.g., online NOCs using GPS for building heights).
Mindset Shift and Gig Economy Inclusion
Gig work is here to stay and should not be over-regulated like full-time jobs.
Labour laws should balance worker rights with business flexibility.
Bureaucracy must shift from a mindset of control to one of support and trust.
India needs another round of deep reforms — like 1991 — to hit 8% annual growth and become a developed country by 2047.
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