Economic Survey calls for 'systematic deregulation' to spur growth, innovation

Eco survey called for an industry-wide push for deregulation, particularly to strengthen the country's small and medium enterprises (SMEs)

The Economic Survey 2024-25 has underscored the need for strategic and systematic deregulation to drive growth, innovation, and enhance India's competitiveness on the global stage. The survey called for an industry-wide push for deregulation, particularly to strengthen the small and medium enterprises (SMEs), or the 'Mittelstand'.

"Deregulation is critical to encourage innovation and create a viable Mittelstand. With a more open regulatory framework, India's SME sector can help states weather economic shocks, realise the country’s manufacturing aspirations, and attract long-term investments," the survey stated.

The document emphasised that the path to further industrialisation hinges on deregulation, research and development (R&D), and upskilling the workforce. "A strong commitment to R&D should be ingrained in the industry’s core values, as it is essential for global competitiveness and profitability," it added.

The survey highlighted that 'employment-sensitive and sustainable growth' could be achieved through regulatory reforms that grant individuals and businesses greater economic freedom. It identified Ease of Doing Business 2.0 as a central agenda, and made a case for pushing a new wave of reforms to streamline regulations and encourage economic activity.

"The way forward for India is to reinvigorate the internal engines and domestic levers of growth. Economic policy must now focus on systematic deregulation as a key agenda under Ease of Doing Business 2.0," the survey noted.

With a strong emphasis on innovation, skill development, and regulatory simplification, the government is expected to accelerate reforms to bolster domestic manufacturing and entrepreneurship in the coming years.