Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Are regulations hurting growth?
Mon, 18 Mar Pre-Open

The origin of the term 'red tape' lies in an old British Indian practice of tying all files with red tape while being carted on mules and donkeys from Delhi to the summer capital Shimla. This is perhaps an apocryphal story, nevertheless revealing. While the British left India, the system got much worse than the hardy animals that carried the files to the hills.

Indian businesses of all sizes fear the country's excessive bureaucracy is damaging its growth prospects. In a survey conducted for Regus, the global workspace provider, almost half (47%) of India's business decision-makers think that red tape is a serious threat to growth. Even according to Mr Raghuram Rajan, chief economic advisor at the Finance Ministry, there are too many regulations in India which is hurting investments.

At the macro level, many other policies such as public procurement, public-private partnership, skill development, natural resources allocation, legal reforms to cut down on delays and so on are trapped due to inter-ministerial turf battles promoted by either status quoism or vested interests. Legal reforms are mortgaged to the powerful bar that thinks they would lose if the system improves.

Macro issues can be best handled by a group of ministers with representation by states, Parliament and key stakeholders, who can debate and find solutions as a national imperative. A similar exercise at the level of the states would also be needed. These have to be non-partisan. Bodies such as the National Development Council deal with a panoply of issues and their meetings usually become state-versus-Centre dialogue, more often hostile.

At the micro level involving every possible state and local government, it is a maze. The major problem with many micro issues is that these are under the jurisdiction of states. Each state has its own peculiarities and contours that vary according to the leader in charge. Micro issues, particularly relating to the regulatory burden, can be dealt with by using regulatory impact assessments of both new and existing laws.

India needs regulations that are workable, implementable and mostly, do what they are supposed to do. There is no point in having 20 regulations and all are flouted. This will only increase the cost.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Are regulations hurting growth?". Click here!


Stock Market Updates

P&G HYGIENE at All Time High; BSE FMCG Index Up 0.5% (Today's Market)

Apr 16, 2021 03:34 PM

P&G HYGIENE share price has hit an all time high at Rs 14,100 (up 3.1%). The BSE FMCG Index is up by 0.5%. Among the top gainers in the BSE FMCG Index today are P&G HYGIENE (up 3.1%) and NESTLE (up 2.0%). The top losers include HUL and GILLETTE INDIA (down 0.1%).

Sensex Trades Marginally Higher, Dow Futures Down by 28 Points (Today's Market)

Apr 16, 2021 12:30 pm

BSE Sensex is trading up by 74 points, while the NSE Nifty is trading up by 55 points.

Indian Share Markets Open Marginally Higher; Wipro Up 7% Post Q4 Results (Today's Market)

Apr 16, 2021 09:30 am

Indian share markets open in green. The BSE Sensex opened up by 131 points, while the Nifty is trading higher by 40 points.

DCM SHRIRAM Share Price Up by 10%; BSE 500 Index Up 0.6% (Today's Market)

Apr 16, 2021 09:54 AM

DCM SHRIRAM share price is trading up by 10% and its current market price is Rs 619. The BSE 500 is up by 0.6%. The top gainers in the BSE 500 Index is DCM SHRIRAM (up 10.3%). The top losers are GODREJ PROPERTIES and TVS SRICHAKRA .

HINDUSTAN COPPER Share Price Up by 5%; BSE METAL Index Up 0.8% (Today's Market)

Apr 16, 2021 09:34 AM

HINDUSTAN COPPER share price is trading up by 5% and its current market price is Rs 145. The BSE METAL is up by 0.8%. The top gainers in the BSE METAL Index is HINDUSTAN COPPER (up 5.2%). The top losers is COAL INDIA (down 0.2%).

WIPRO Share Price Up by 5%; BSE IT Index Up 0.6% (Today's Market)

Apr 16, 2021 09:30 AM

WIPRO share price is trading up by 5% and its current market price is Rs 453. The BSE IT is up by 0.6%. The top gainers in the BSE IT Index is WIPRO (up 5.0%). The top losers is INFOSYS (down 0.1%).

View More Indian Share Market News

Most Popular

India: Recovery Stalled by Vaccine Games?(The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave(Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

An India Revival Stock I'm Bullish On...(Profit Hunter)

Apr 9, 2021

This could take India to the position of 3rd largest economy.

Why Did the Market Crash on Monday?(Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits(Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 16, 2021 (Close)