Deregulation Commission Announced by PM Modi to Minimise Government Role in Governance

Prime Minister Narendra Modi announced the formation of a deregulation commission to reduce government involvement in governance. Speaking at the ET Now Global Business Summit, he highlighted the government's efforts to eliminate outdated regulations through Jan Vishwas 2.0, aiming to simplify business operations. Modi expressed his belief in minimal government interference in society and mentioned plans to establish a Regulation Commission.

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The Prime Minister emphasised the importance of the private sector in India's development journey. He noted that the government has opened sectors like nuclear energy, space, commercial mining, and power distribution for investment to enhance efficiency. Modi expressed confidence that India will play a significant role in the fourth industrial revolution.

Focus on Property Rights and Economic Growth

Discussing reforms, Modi highlighted the Svamitva Yojana's impact on property rights. He stated that many people globally lack legal documentation for their properties, which hinders poverty reduction. The previous government overlooked this issue, but Svamitva Yojana has unlocked properties worth Rs 100 lakh crore in rural areas, enabling villagers to access bank loans.

The scheme, launched on National Panchayati Raj Day on April 24, 2020, aims to transform rural India's economy by providing property owners with a Record of Rights. Using drone and GIS technology for land demarcation, it facilitates property monetization, bank loans, reduces disputes, and promotes village-level planning.

Banking Sector Reforms and Financial Inclusion

Modi addressed banking sector improvements, noting past challenges with access to credit. The government's strategy focused on "Banking the unbanked," "Securing the unsecured," and "Funding the unfunded." Financial inclusion has improved significantly, with nearly every village having a bank branch or correspondent within 5 kilometres.

The Mudra Yojana has provided around Rs 32 lakh crore to individuals previously unable to secure loans. Despite large loan disbursements, banks' profits are rising. Public sector banks reported over Rs 1.25 lakh crore profit in nine months of the current financial year, contrasting with past losses and concerns over NPAs.

Political Performance and Economic Achievements

Modi remarked that today's politics is performance-oriented, with citizens demanding results from leaders. He criticised the previous UPA regime for lacking sensitivity to people's needs. Under his government, 25 crore individuals have emerged from poverty, creating a Neo-middle class.

To support the middle class further, the government raised the zero Income Tax liability threshold from Rs 7 lakh to Rs 12 lakh. These achievements are attributed to a proactive and sensitive government approach.

Reforms and Future Economic Prospects

The Prime Minister criticised the previous UPA government for slow reforms but noted that after BJP's rise in 2014, a new wave of reforms began. He questioned what might have happened if Congress's pace of development and corruption had continued.

Due to reform measures over the last decade, India became the world's fifth-largest economy. Modi confidently stated that India will become the third-largest economy in coming years. He also mentioned remnants of British-era practices persisting post-independence.

He cited justice delays as an example of unresolved issues but noted visible changes within seven to eight months due to implementing Bharatiya Nyaya Sanhita (BNS).