(MENAFN- KNN India) New Delhi, Dec 5 (KNN) A high-level NITI Aayog panel has proposed reforms to simplify India's regulatory architecture, including scrapping unnecessary licences, permits and NOCs, replacing inspector-led checks with third-party inspections, and ensuring stable, predictable policies.

The committee, chaired by NITI Aayog member Rajiv Gauba, submitted its report on Non-Financial Regulatory Reform, outlining the Jan Vishwas Siddhant, a trust-based regulatory approach aimed at easing compliance and improving the business environment.

Key Recommendations

The panel recommended limiting licensing only to activities involving national security, public safety, health or major public interest, while all other activities should function without prior approvals.

Registrations should shift to simple, self-declared processes, with most licences remaining perpetual.

It proposed computer-assisted, risk-based inspections carried out by accredited third parties. Regulations should be updated only on fixed annual timelines, with prior stakeholder consultations.

The panel also called for mandatory regulatory impact assessments to evaluate compliance costs for businesses and enforcement burdens on the government. Minor or technical offences should be decriminalised, keeping criminal penalties only for serious violations.

All compliance processes should be fully digital, with ministries ensuring data interoperability so businesses do not have to submit information repeatedly.
The recommendations will apply to all ministries and departments, with states encouraged to adopt the framework as well.

Impact on MSMEs

The proposed reforms are expected to significantly ease compliance for MSMEs, which often struggle with licences, inspections and paperwork.

Risk-based inspections and decriminalisation of minor offences could also provide relief to small enterprises frequently burdened by procedural requirements.

(KNN Bureau)

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