New Delhi: Former cabinet secretray Rajiv Gauba, a retired IAS officer of 1982 batch from the Jharkhand cadre and Member, NITI Aayog, called for deregulation to become a defining feature of India’s next-generation reform architecture during a fireside chat at the Global Fintech Fest 2026 in Delhi.
Speaking on “From Regulation to Transformation: Building India’s Next-Generation Reform Architecture,” Mr Gauba discussed India’s regulatory journey, fintech innovation, institutional reforms and the need to sustain the country’s long-term growth momentum.
Ex-IAS Gauba Highlights Next Phase of Economic Reforms
Reflecting on the reforms undertaken over the past decade, Mr Gauba highlighted several major measures that have reshaped India’s economic landscape.
These include:
- Goods and Services Tax (GST)
- Insolvency and Bankruptcy Code (IBC)
- Liberalisation of the foreign investment regime
According to Gauba, these reforms have helped open up sectors that were previously considered largely off-limits to private enterprise, including defence and space, with nuclear energy now also opening up.
He said the next phase of reforms should focus on practical, ground-level changes that improve the ease of doing business and reduce unnecessary regulatory barriers.
Deregulation to Define Next-Generation Reform Architecture
He said “deregulation” should be at the core of India’s next-generation reform agenda, with greater emphasis on what he described as “nuts-and-bolts” reform.
The objective is to move away from the prevailing system of repeated:
- Licences
- Approvals
- Permissions
- Frequent renewals
He stressed the need for a systematic review of laws, regulations and administrative processes to identify and eliminate unnecessary compliance requirements.
This work is being undertaken by a High-Level Committee, guided by the philosophy of Trust-Based Governance advocated by the Prime Minister.
Deregulation Push to Extend to States and Cities
Mr Gauba noted that many important reforms fall within the jurisdiction of State governments and municipal authorities.
In this context, he pointed to the work of the Deregulation Task Force, which seeks to take the principles of trust-based governance to the State and city levels.
He also highlighted two key initiatives:
- Special Assistance to States for Capital Investment
- Urban Challenge Fund
He described the Centre’s approach as “cooperative federalism with a competitive edge.” Under this approach, incentives provided through government schemes are linked to the achievement of reform milestones, while projects are selected through a challenge-based mechanism.
India’s Digital Public Infrastructure Driving Fintech Growth
Discussing India’s fintech sector, Gauba highlighted its phenomenal growth and its contribution to financial inclusion and wider access to financial services.
He cited India’s digital public infrastructure as an example that can be replicated globally. The ecosystem includes:
- Aadhaar
- Unified Payments Interface (UPI)
- DigiLocker
- Account Aggregator framework
Mr Gauba explained that India’s approach involves governments providing open, secure and interoperable digital rails, allowing private enterprises to build services and innovate on top of this infrastructure.
Gauba Calls for Balanced and Proportionate Fintech Regulation
Gauba said regulation in technology-driven sectors needs to maintain a dynamic balance between protecting public interest and allowing innovation to flourish.
He emphasised that regulatory frameworks should be:
- Principles-based
- Technology-neutral
- Proportionate to risk
- Supportive of competition
- Designed to ensure non-discriminatory access to underlying infrastructure
- Focused on improving information symmetry
He also called for greater coordination among financial regulators and simpler, more predictable compliance processes.
Continued efforts are also needed to reduce frictions and interoperability gaps within the financial and digital ecosystem.
Focus on Attracting Long-Term Capital
Gauba also highlighted measures taken by the government to attract long-term domestic and foreign capital into India.
He said investor confidence is being strengthened through greater attention to:
- Fair treatment of investors
- Predictable government policies
- Strong data governance
- Cybersecurity
- Adequate space for innovation
These factors, he noted, are important for creating an environment that supports sustained investment and long-term economic growth.
Reforms Need to Become Part of Governance Culture
Concluding his remarks, Gauba said reform should become an integral part of the culture of governance, backed by long-term and strategic thinking. He stressed that the vision of Viksit Bharat by 2047 should be approached as a national enterprise, with the government, industry and citizens each having an important role in maintaining India’s reform and growth momentum.
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