2,735 reasons why India needs to cut red tape

Time of India

2 days ago

2,735 reasons why India needs to cut red tape
Swaminathan S Anklesaria Aiyar
TNN
Updated: Jul 26, 2025, 19:30 IST IST
India's ambitious renewable energy goals are threatened by excessive red tape, exemplified by the 2,735 compliance obligations for solar plants. This regulatory burden, involving numerous agencies and manual processes, hinders ease of doing business and discourages investment. Streamlining compliance is crucial for achieving a sustainable energy future and attracting necessary funding
Many analysts have urged second-generation economic reforms if India is to hit its Viksit Bharat target of becoming a high-income country by 2047. The target will require the rate of GDP growth to rise to 8% per year, a very tough task. Many analysts say that first-generation reforms are largely done but cannot by themselves create 8% growth, for which a second set of reforms is essential.
This analysis has two major flaws. One is that it ignores the high political cost of major new reforms, as shown by the fiasco on elementary agricultural reforms. There has also been resistance to faster land acquisition bids. One of Prime Minister Modi's top priority projects is the bullet train from Mumbai to Ahmedabad. Land acquisition for the project was completed only in 2024, more than a decade after it was envisaged.