Innovative Governance in the Indian Market Regime Through Regulatory Impact Assessment: An Analysis

Abstract

Regulatory impact assessment is necessary for determining the need for policies and a scientific, logical guide to designing them, when necessary. It involves a step-by-step approach comprising problem definition, baseline regulatory assessment, comparison of alternatives and selection of regulations that have the potential to result in the highest net benefits to society. To address inconsistencies and systematise regulatory uniformity in India, regulatory impact assessment of the Indian legislative framework has emerged as a much-needed impetus. Innovative governance system may be employed as a mechanism by regulatory bodies that shall ensure effective steering of regulatory impact assessment process. Aligning with the laid regulatory goals and objectives, this process backed by innovative technologies may further assist in managing the complex and cross-functional regulatory activities. We try to shift the narrative from ‘governance and technology’ where a friction between the two could be a presupposition to the concept of ‘governance with technology’ which is all encompassing and enabling. In this article, we will analyse the need and scope of regulatory impact assessment within the existing Indian legal regime. To weigh potential risks and trade-offs in the regulatory sector, we will further explore the impact of regulatory assessment on competitiveness in the market. Thereafter, we will examine the use and adaptation of regulatory impact assessment tools. Lastly, we will explore the scope for the use of technological innovations in conducting regulatory impact assessment in India.