India’s Sitharaman Says Regulation Must Be Guardrails, Not Tollgates

Finance Minister Nirmala Sitharaman said regulation should act as guardrails, not tollgates, to avoid stifling business activity. Speaking at the NDTV Profit Business Leadership Awards on Sunday, she laid out the government’s regulatory philosophy: enabling growth while keeping risks in check. “Our conviction is simple. Regulation should be a guardrail, not a tollgate. Deregulation is a habit we intend to keep,” she said.

The minister highlighted deregulation and infrastructure building, along with macroeconomic stability, as pillars of India’s growth strategy. She said the Centre is pursuing a trust-based regulatory framework – one that relies on simplified compliance and risk-based enforcement rather than upfront approvals. Over the past two years, the government has decriminalised several business-related provisions, extended the validity of licences, and replaced some physical inspections with third-party certification.

Sitharaman described the effort as one of the country’s most extensive deregulation exercises, with ministries reviewing outdated rules and rationalising quality control orders. The broader aim, she said, is to replace an approval-based regime with a system that trusts businesses while still protecting public interest.

The five pillars she cited include the trust-based regulatory system, quality infrastructure, stronger global partnerships, macroeconomic stability, and continued investment in future generations. On infrastructure, Sitharaman said the government has significantly expanded highways, expressways, airports, ports, and dedicated freight corridors over the past decade. The PM Gati Shakti National Master Plan, she added, has improved coordination across ministries, enabling faster project execution.