Deregulation should be the defining feature of India’s next-generation reform architecture, with greater focus on simplifying licences, approvals, permissions and renewal processes, NITI Aayog Member Rajiv Gauba said on Thursday.
Addressing a fireside chat on “From Regulation to Transformation: Building India’s Next-Generation Reform Architecture” at the Global Fintech Fest 2026, Gauba spoke about India’s reform journey over the past decade and the institutional changes required to sustain economic growth and advance the vision of Viksit Bharat.
Gauba said major reforms such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) and liberalisation of the foreign investment regime had significantly reshaped the economy and opened sectors including defence and space to greater private participation, with nuclear energy now also being opened up.
He said the next phase of reforms should focus on the “nuts-and-bolts” of governance by systematically reviewing existing laws, regulations and administrative processes.
According to Gauba, a High-Level Committee is working on this exercise, guided by the principle of trust-based governance advocated by Prime Minister Narendra Modi.
Focus on State and city-level reforms
Gauba also highlighted the importance of reforms at the state and municipal levels, noting that several areas requiring reform fall within the jurisdiction of state and local governments.
He pointed to the Deregulation Task Force as an effort to extend trust-based governance principles to states and cities.
Referring to the Special Assistance to States for Capital Investment scheme and the Urban Challenge Fund, Gauba described the Centre’s approach as “cooperative federalism with a competitive edge”, where incentives are linked to reform milestones and projects are selected through a challenge-based process.
Fintech needs balance between innovation and regulation
On India’s fintech sector, Gauba highlighted its rapid growth and contribution to financial inclusion and wider access to financial services.
He cited India’s digital public infrastructure, including Aadhaar, UPI, DigiLocker and the account aggregator framework, as an example of how governments can provide secure and interoperable digital infrastructure on which private enterprises can build and innovate.
Gauba said regulation in technology-driven sectors must maintain a balance between protecting public interest and allowing innovation to flourish.
He called for regulatory frameworks to be principles-based, technology-neutral and proportionate to risk, while promoting competition, ensuring non-discriminatory access to underlying infrastructure and improving information symmetry.
He also stressed the need for greater coordination among financial regulators, simpler and more predictable compliance requirements and continued efforts to address friction and interoperability gaps.
Focus on investor confidence
Gauba said the government has also taken steps to attract long-term domestic and foreign capital by strengthening investor confidence through measures relating to fair treatment, predictable policies, data governance and cybersecurity, while ensuring adequate space for innovation.
Concluding his remarks, Gauba said reform must become an integral part of the culture of governance and be supported by long-term and strategic thinking.
He said the goal of Viksit Bharat by 2047 should be approached as a national enterprise, with the government, industry and citizens each having a role in sustaining India’s reform and economic growth momentum.
