Finance Ministry Shifts Focus From GST Reforms to Overhauling Regulators

After completing a major round of GST changes, Finance Minister Nirmala Sitharaman has hinted that the government’s next big reform push will not be in tax or banking but in the way non-financial regulators function. The plan is to streamline processes across key sectors like food safety, competition policy, and consumer protection, which often affect businesses and citizens in Tier 2 and Tier 3 cities more directly than financial regulations.

The GST reform, which introduced a simpler two-tier structure, was aimed at reducing complexity and reviving consumer demand. While businesses are still adjusting, the Finance Ministry is already preparing for the next step—addressing long-standing complaints about regulatory hurdles outside the financial sector.

A high-level committee is expected to be set up to review how these regulators operate. The focus will be on cutting unnecessary paperwork, speeding up approvals, and ensuring that rules are transparent and consistent. This is especially significant for small and medium enterprises, many of which face delays and costs that limit their growth.

States are likely to play a larger role in shaping and implementing these reforms, with the Centre looking at a cooperative model. For Tier 2 cities, this could mean quicker permissions for industries, easier compliance for startups, and smoother expansion opportunities for local businesses.

The challenge will lie in execution. Regulatory reforms often face resistance from entrenched systems and can take time to show results. Yet the Finance Ministry’s push signals intent to move beyond headline tax reforms and target the everyday bottlenecks that hold back economic activity.

For entrepreneurs and citizens alike, the shift in focus highlights an important point—India’s growth story is no longer just about big financial reforms, but about making governance work better at the ground level