Content
- From Licence Raj to Jan Vishwas, what we need to set our entrepreneurs free
- The Indian Ocean as cradle of a new blue economy
From Licence Raj to Jan Vishwas, what we need to set our entrepreneurs free
Why is this in news?
- The editorial discusses the Jan Vishwas (Amendment of Provisions) Act, a major reform aimed at decriminalising business laws, reducing compliance burdens, and improving ease of doing business.
- The context includes India’s long struggle with overregulation, inspector raj, and criminalisation of minor business offences.
- With new measures such as rule simplification, perpetual self-registration, randomised inspections, and performance management of civil servants, the article argues India is moving from a permission-based state to a trust-based governance system.
- The discussion becomes relevant amid global slowdown, unemployment concerns, and the push for India to become a productivity-driven, innovation-led economy.
Relevance
GS-II
- Governance reforms.
- Decriminalisation of minor offences.
- Administrative reforms (randomised inspection, performance management).
- Policy-making and legislative processes.
- Role of the state in enabling vs controlling enterprise.
GS-III
- Economic growth and job creation.
- Ease of doing business.
- Regulatory reforms in industries and MSME sector.
- Technology-driven monitoring and compliance.
Practice Question
- “India’s entrepreneurship crisis is rooted more in regulatory overreach than in lack of enterprise.” Examine in the context of the Jan Vishwas Act.(15 marks)
What is the Licence Raj?
- A system between 1950s–1991 where entrepreneurs required approvals for almost every business decision.
- Characterised by:
- Heavy state control over private enterprise
- Red-tapism and inspector raj
- Criminal penalties for administrative lapses
- Restrictions on scale, pricing, production, imports
- 1991 LPG reforms reduced but did not eliminate the regulatory overhang.
The Editorial argues that many “licence raj instincts” still survive within Indian bureaucracy.
What is the Jan Vishwas Act?
- A legislative reform passed to amend 180+ provisions across 42 laws.
- Core objectives:
- Decriminalise minor offences (especially where no harm is caused)
- Replace jail terms with monetary penalties
- Enable voluntary compliance
- Establish perpetual self-registration for many licences
- Reduce the interface between businesses and inspectors
- Make the system less adversarial, more trust-driven
Areas amended include: environment, agriculture, media, IT, patents, trade, and archival laws.
India’s entrepreneurship problem is regulatory, not cultural
- Indians are naturally entrepreneurial but are held back by:
- Excessive permissions
- Criminal penalties for routine errors
- Opaque decision-making
- Arbitrary inspections
- Discretionary powers
- Example cited: Parents in the 1980s asking “ijazat hai?”—a mindset shaped by prior approval cultures.
India suffers from four core regulatory pathologies
Prior approval culture
- Too many activities require prior permission, often discretionary.
- Over 3,000 forms, licences and permissions required for business activity.
- This slows down job creation and investment.
Compliance overload
- 1,000+ acts, 58,000 compliances, 26,000 criminal provisions.
- Entrepreneurs spend excessive time on compliance instead of innovation.
- Many laws impose criminal liability for technical, non-malicious errors.
Criminalisation of economic activity
- Minor lapses (late filings, non-material compliance errors) can lead to arrest or jail.
- Creates fear, reduces risk-taking, and pushes MSMEs into informality.
- Leads to case backlogs in judiciary.
Punitive enforcement instead of facilitation
- Government tends to punish rather than guide.
- Most cases filed by government are those where no harm has occurred—yet prosecution continues.
- Only 5% of cases result in conviction, showing systemic inefficiency.
Missing priority: non-rule instruments
- The editorial stresses not just laws (“Acts”) but rules and subordinate legislation (“Act–rules–punishments” chain).
- India has:
- 1,600+ central rules
- 700+ state rules
- Hundreds of circulars, FAQs, guidance notes
- Entrepreneurs struggle because while Acts are well-known, rules are numerous and complex.
State capacity constraints
- With 25 million civil servants, the state spends ₹10 lakh crore annually on salaries, but performance is often poor.
- Emphasis on:
- Reducing inspector discretion
- Randomised inspections
- Third-party evaluation
- Digitisation
The Jan Vishwas Act is a structural leap, not a patch
- It decriminalises approx. 150+ minor offences.
- Introduces self-certification, perpetual registration, compounding, and ease-of-compliance norms.
- Central message: “Government should trust first, verify later, punish only if harm occurs.”
Consequences of over-criminalisation
- Backlogs in courts: 3.4 crore cases.
- Criminalisation increases fear, costs, and delays.
- Instead of fostering entrepreneurship, system becomes punitive.
- Compliance officers spend more time avoiding penalties than creating value.
A modern regulatory philosophy required
The article proposes three pillars:
- Aspirational, facilitative state
- Predictable, transparent rules
- Proportionate punishments and risk-based regulation
This aligns with global norms of smart regulation.
Macro significance of reforms
Economic
- Lower cost of doing business.
- Higher formalisation.
- Boost to MSMEs and startups.
- Encourages FDI and global competitiveness.
Governance
- Reduces bureaucratic discretion.
- Increases regulatory clarity.
- Frees judicial capacity from low-value cases.
Societal
- Promotes job creation and economic mobility.
- Reduces harassment of small business owners.
- Strengthens trust between state and citizen.
Conclusion
The editorial argues that India’s economic future depends not only on capital and labour, but on creating a regulatory environment that unleashes entrepreneurship. The Jan Vishwas Act is an important step toward shifting India from inspector raj to trust-based governance, reducing criminalisation, and positioning the country for innovation-driven growth.
The Indian Ocean as cradle of a new blue economy
Why is this in news?
- India is emerging as a key player in global ocean governance, with major milestones occurring in 2025–26, including:
- COP30 (Belém) prioritising ocean-climate linkages.
- UNOC3 (Nice) outcomes pushing new commitments for sustainable oceans.
- Entry into force of the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement.
- Surge in global blue economy financing, including:
- €8.7 billion new commitments at BEFF 2025
- $20 billion One Ocean Partnership (COP30)
- India’s preparation to ratify the BBNJ Agreement and potential leadership role in IORA.
- The article highlights how India, historically a champion of “common heritage of mankind” during UNCLOS negotiations, now stands at a pivotal moment to lead ocean sustainability in the Indian Ocean, the world’s most climate-stressed basin.
Relevance
GS-III
- Blue economy & sustainable development
- Climate resilience and ocean-based mitigation
- Marine biodiversity conservation
- IUU fishing, coral reef loss, coastal degradation
- Financing sustainable oceans (blue bonds, blended finance)
- Marine technology transfer and innovation
- Maritime security through sustainability
Practice Question
- “Security in the Indian Ocean will increasingly depend on sustainability rather than naval power.” Analyse.(15 marks)
What is UNCLOS and India’s legacy?
- UNCLOS (negotiated 1973–82) is the global “constitution of the oceans”.
- India aligned with small island states, arguing that the international seabed should be a global commons, not controlled by powerful states.
- India advocated fairness, equity, and resource sharing—strengthening its moral leadership in ocean diplomacy.
- Post-independence vision:
- 1950s Nehru recognized seas as central to security and prosperity.
- India consistently promoted freedom of navigation, sustainable resource use, and equitable ocean governance.
Why new ocean leadership is needed now ?
- Oceans face unprecedented stress:
- Climate warming
- Ocean acidification
- Sea-level rise
- Illegal, unreported, unregulated (IUU) fishing
- Habitat & coral degradation
- The Indian Ocean:
- Home to 1/3rd of humanity
- One of the most climate-vulnerable marine regions
- Key for global shipping, food security, energy routes
Hence, India must lead not just law-making but practice-setting.
India’s Blue Ocean Strategy — three pillars
Stewardship of the commons
- Promote the Indian Ocean as a shared space, not strategic battleground.
- Lead efforts on:
- Marine ecosystem restoration
- Biodiversity conservation
- Sustainable fisheries
- Cooperative resource management
- Build frameworks that prioritise sustainability over competition.
Climate and ocean resilience
- Establish a Regional Resilience and Ocean Innovation Hub for:
- Ocean observation systems
- Early warning systems
- Climate adaptation technology
- Technical support for Small Island Developing States (SIDS) and African littoral nations
Inclusive and sustainable blue growth
- Unlock the Indian Ocean’s economic potential through:
- Green shipping & maritime decarbonisation
- Offshore renewable energy
- Sustainable aquaculture
- Marine biotechnology
- Blue bonds and blended finance
- Ensure benefits reach all littoral states, not just large economies.
Financing momentum: Why this moment matters ?
Recent global commitments signal an unprecedented expansion of ocean finance:
- BEFF 2025 (Monaco):
- €25 billion ocean investment pipeline
- €8.7 billion new blue finance commitments
- 20 public development banks pledging $7.5 billion annually
- Dev Bank of Latin America: doubles blue economy target to $2.5 billion by 2030
- COP30 Belém:
- One Ocean Partnership: $20 billion for ocean action
- India can now:
- Mobilise funds
- Direct financing to Indian Ocean priorities
- Establish an Indian Ocean Blue Fund for regional projects
Security through sustainability: a shift in India’s maritime doctrine
Current discourse focuses on:
- Indo-Pacific
- Naval competition
- Freedom of navigation
- Securing Sea Lines of Communication (SLOCs)
But the article argues real security threats begin with ecological collapse, not military imbalance.
Examples of ecological security threats
- IUU fishing undermines food security
- Coral reef loss destroys livelihoods
- Storm surges intensify
- Marine ecosystem collapse fuels instability
Alignment with SAGAR
India’s SAGAR doctrine (2015) positions the Indian Ocean as a:
- Zone of peace,
- Stability, and
- Prosperity for all
Not a theatre of geopolitical rivalry.
India’s Navy, Coast Guard, and civilian agencies can jointly lead:
- Marine domain awareness
- Disaster response
- Ecosystem monitoring
- Capacity building for island nations
This reframes the Indian Ocean as a zone of responsibility, not dominance.
Global governance moment: Why 2026 is pivotal ?
Three global processes converge:
- UNOC3 outcomes
- BBNJ Agreement entering into force
- COP30 aligning climate & ocean agendas
India’s readiness to ratify BBNJ strengthens its credibility as a leader in:
- Equitable marine biodiversity conservation
- Fair access to marine genetic resources
- Inclusive marine technology transfer
- Blue carbon and ocean-based climate mitigation
Opportunity: India can shape norms for emerging fields like:
- Green shipping corridors
- Blue bonds
- Ocean-based CO₂ removal
- Fair governance of high-seas resources
India’s historic responsibility
- India has moral authority from its UNCLOS-era leadership.
- It now has global expectations due to its economic and geopolitical rise.
- Indian Ocean, cradle of old civilisations, can become cradle of a new blue economy founded on:
- Sustainability
- Inclusive prosperity
- Climate justice
Conclusion
The editorial argues that India is at a historic juncture:
- It once shaped global norms through UNCLOS;
- It can now lead global practice by transforming the Indian Ocean into a model of sustainability, innovation, and shared prosperity.
India’s leadership—rooted in ambition, humility, inclusivity, and climate justice—can ensure the Indian Ocean becomes a beacon of cooperation rather than conflict.
