The Economic Survey 2024-25 has advocated for a significant reduction in micromanaging India’s economic activity. One of the central themes in the Survey is the call to embrace the principle of ‘innocent until proven guilty’ in policy-making, instead of the existing model of ‘guilty until proven innocent.’ This change will empower entrepreneurs and businesses by eliminating unnecessary bureaucratic hurdles, thus promoting an environment conducive to growth and innovation.
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As per the Survey, “the most effective policies governments — Union and States — in the country can embrace is to give entrepreneurs and households back their time and mental bandwidth.” The focus is on simplifying and removing unnecessary complexities from regulations that, instead of serving their purpose, complicate the operational landscape. The Survey argues that “adding layers of operational conditions to policies to prevent abuse makes them incomprehensible and regulations needlessly complicated.”
The principle of ‘innocent until proven guilty’ is about creating a more business-friendly environment where entrepreneurs and businesses are not immediately penalised for minor infractions. It promotes trust-based governance, where the burden of proof lies with authorities rather than the taxpayers or entrepreneurs, ensuring a more fair and transparent system.
This is where the Vivaad Se Vishwas scheme, launched in 2020, plays a crucial role. The scheme was designed to settle tax disputes quickly, without imposing penalties or interest, provided the taxpayer pays the disputed amount. This initiative encapsulates the shift towards a more trust-based relationship between the government and taxpayers, allowing businesses to resolve issues efficiently and without prolonged legal struggles.
By eliminating the punitive approach and encouraging dispute resolution through transparent, voluntary mechanisms, Vivaad Se Vishwas reflects the same principles the Survey advocates — trust and simplification. Just as the scheme seeks to resolve past disputes and allow businesses to move forward, similar reforms across other regulatory areas could unlock smoother economic growth by reducing the regulatory burden on businesses.
The Economic Survey also emphasises that this shift towards an ‘innocent until proven guilty’ model will reduce delays, lower compliance costs, and foster greater confidence in the regulatory environment. As businesses focus more on growth rather than dealing with complex regulations, India’s economy stands to benefit from a more dynamic and efficient market.
In conclusion, the Economic Survey 2024-25 calls for a rethinking of how policies and regulations are structured, advocating for simplification, transparency, and trust. By drawing on successful initiatives like Vivaad Se Vishwas, India can build a more conducive environment for entrepreneurial growth, ensuring that businesses are not bogged down by unnecessary red tape.
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