Government regulation should be gatekeepers, not toll gates: Sitharaman

New Delhi: The government’s regulatory philosophy is anchored on enabling growth while keeping risks under control, with rules acting more like gateposts than toll gates so as not to hamper business activities, Finance Minister Nirmala Sitharaman said on Sunday.

Sitharaman highlighted deregulation, infrastructure building and macroeconomic stability as key drivers of India’s growth.

Speaking at the NDTV Profit Business Leadership Awards, she said the Center is striving for a trust-based regulatory framework that facilitates ease of doing business while protecting public interest. “Our belief is simple. Regulation should be a guardrail, not a tollgate. Deregulation is a habit we intend to preserve,” she said.

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The finance minister said the government has undertaken one of the largest deregulation exercises in the country, with the Center and states working together to simplify compliance requirements. As part of the exercise, the government extended the validity of licenses and certificates, replaced several physical inspections with third-party certification and decriminalized routine business failures, Sitharaman said.

Sitharaman’s remarks are in line with the Centre’s ongoing deregulation, which aims to replace approval-based compliance with a trust-based regulatory framework. Over the past two years, the government has decriminalized several business-related provisions, simplified compliance requirements, expanded anonymous and digital approvals, streamlined quality control orders (QCOs), and asked ministries to review and repeal outdated rules while maintaining regulatory oversight through risk-based enforcement and quality standards.

She said India’s long-term growth strategy rests on five pillars, which include a trust-based regulatory system, quality infrastructure, stronger global partnerships, macroeconomic stability and continued investment in future generations.

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Highlighting the country’s economic performance, she said India continues to demonstrate resilience despite an uncertain global environment, with high-frequency indicators pointing to sustained economic activity. It cited GST collection, e-way bill generation, electricity demand, digital payments, vehicle sales, tractor sales and healthy order books as indicators of continued momentum.

On infrastructure, Sitharaman said the government has significantly expanded highways, expressways, airports, ports and dedicated freight corridors in the last decade. Prime Minister Gati Shakti’s National Master Plan has improved coordination across ministries and enabled integrated planning and faster implementation of infrastructure projects, she said.

She also highlighted the importance of international economic partnerships, saying that India’s expanding network of free trade agreements is creating new opportunities for exporters across sectors, including micro, small and medium enterprises (MSMEs), agriculture, textiles, leather, handicrafts and eco-friendly products. These agreements, she said, also open new avenues for Indian professionals and students overseas.

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Sitharaman further said that macroeconomic stability remains a key strength for India, supported by prudent fiscal management, a stable financial system and continued public investment. She added that sustained investment in education, skills and innovation will be essential to ensure that India’s demographic dividend translates into long-term economic growth.