The Economic Survey 2024-25 on Friday mooted withdrawal of regulations or making compliance voluntary with disclosure where the market can do an effective job in the areas of health and education.
Pitching for "trust-based regulation", the survey said that tight regulations increase compliance and supervision burden on the already stretched state capacity.
Trust-based regulation backed up by transparency and disclosure on the part of the regulated deserves a chance, said the pre-Budget document while noting that regulatory institutions need to evolve to focus on allowing outcomes to happen without being fixated on inputs.
"The government's focus on rural infrastructure, housing, and livelihoods reflects a comprehensive 'welfare for all' approach," it noted.
By improving rural connectivity, sanitation, housing, access to drinking water, and social inclusion, alongside supporting microfinance, SHGs (self-help groups), and localisation of SDGs (sustainable development goals), these initiatives ensure inclusive development.
Together, they uplift rural communities, bridging gaps in equity and quality of life, the survey said.
It pointed out that regulatory institutions in the areas of health and education must constantly balance the needs of the society and that of the ease of provision of such services by the providers.
"Where the market can do an effective job, regulations can either be withdrawn or compliance made voluntary with disclosure. Tight regulations increase the compliance and supervision burden on state capacity that is already stretched. This gives rise to unfulfilled expectations on the part of the public," the survey said.
Therefore, it added, "For India to receive the demographic dividend in full in the coming years, regulatory institutions need to evolve to focus on allowing outcomes to happen without being fixated on inputs."
The survey further said, "Trust-based regulation backed up by transparency and disclosure on the part of the regulated deserves a chance."
Regulators must develop their assessment parameters and report on their own effectiveness transparently, it said, adding, "There is no better way to demand right behaviour than to set an example."
While the education and health system has made significant progress through various initiatives aimed at achieving national goals, the survey said, "There is a critical need to enhance the delivery mechanisms".
By rethinking and improving these systems and integrating innovation and technologies, one can ensure that benefits effectively reach the last mile and are fully realised by those who need them most, it added.
The survey noted that the Indian economy's growth story emphasises a welfare-enhancement approach by the government, focusing on empowering all citizens and ensuring the efficient delivery of welfare measures.
The government's initiatives aim to provide opportunities for everyone, enabling them to achieve their professional and personal goals, it said, adding that "with the focus on education, health, skilling, and innovation, with improved social and economic infrastructure, the aim is to achieve welfare for all".
