High-level panel for regulatory reforms in non-financial sector should begin work soon: Fin Secy

Finance Secretary and Economic Affairs Secretary Ajay Seth on Saturday said that a high-level committee for regulatory reforms in the non-financial sector should be starting its work soon to foster ease of doing business as announced in the Budget 2025-26.

Finance Minister Nirmala Sitharaman in her Budget speech last month announced the creation of a high-level committee for regulatory reforms for a review of all non-financial sector regulations, certifications, licences, and permissions.

"The committee will be expected to make recommendations within a year. The objective is to strengthen trust-based economic governance and take transformational measures to enhance 'ease of doing business', especially in matters of inspections and compliances. States will be encouraged to join in this endeavour," she had said.

Observing that a number of structural reforms have been announced in the last 10 years, Seth said, at the same time keeping those reforms in tandem with technological advancement, removing legislative provisions that have outlived their utility and maintaining their relevance in the 21st century and next 23 years requirements have to be looked at.

There is a need to move towards light-touch regulatory reforms, which are people-friendly, which are modern and flexible, he said at the SKOCH Summit.

"So this initiative of a high-level committee on regulatory reforms in non-financial sector work should be starting soon," he said.

To promote competitive cooperative federalism among states and also assess which state is more investor friendly, Seth said, an Investment Friendliness Index of States will be launched.

This will generate healthy competition among states and promote business-friendly reforms to attract investment, he said.

"Our journey towards Viksit Bharat is possible only when everybody is coming together, all people, all regions (and) all states," he added.

Speaking about reforms in the financial sector to be undertaken by the Financial Stability and Development Council, Seth said, the objective is to support development at the same time allow for more efficient usage of capital.

Under the Financial Stability and Development Council, a mechanism will be set up to evaluate the impact of the current financial regulations and subsidiary instructions and it will also formulate a framework to enhance the responsiveness and development of the financial sector, Sitharaman had announced in the Budget 2025-26.

The Financial Stability and Development Council is headed by the finance minister and all financial sector regulators, including the RBI, SEBI, IRDAI and PFRDA, are its members.