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NITI Aayog Proposes Broad Deregulation to Replace Licence Regimes

The plan aims to speed business entry by replacing routine licences with automatic registration and risk‑based rules.

Overview

  • On Thursday NITI Aayog member Rajiv Gauba set out a concrete deregulation agenda calling for a large-scale review of laws to free industry and citizens from frequent permits and renewals.
  • The proposals would require licences only for national security or serious health or environmental risks and make registration automatic in other areas with inspections guided by risk assessments.
  • NITI Aayog recommends principle-based, technology-neutral rules that scale obligations by systemic risk and says a digital competition bill under development would target only systemically significant digital firms.
  • A high-level committee and a deregulation task force will review laws and coordinate with states and private partners on implementation, and the measures are policy proposals rather than enacted law.
  • If adopted, the changes could reduce compliance costs and speed entry for small firms and startups while relying on India’s digital public infrastructure to manage oversight and minimise regulatory friction.