India’s own path of economic reform stretches back more than three decades and has redefined the subcontinent’s economic, demographic, and political landscape. These market-oriented reforms, which started in earnest during the 1990s, represented a fundamental break from the past and a move towards greater economic liberation. In 2013, the government cracked open the door for the private sector to step into territories previously occupied exclusively by state-owned enterprises. This shift ignited an unprecedented era of new growth and global competitiveness.
The liberalization of the economy was accompanied by a robust set of assumptions about what an economy should look like and how it should grow. Policymakers were convinced that bringing in the fierce competition, efficiency, and innovation of market dynamics through the private sector would be the ticket. This transformation brought with it complications that still ripple through the regulatory landscape today.
One such egregious issue is having a non-diverse talent pool from which regulators can be chosen. This historic shortage threatens to undermine the bedrock principle of these reforms. As industry experts have pointed out, a thin pool of regulatory talent can severely limit effective governance and oversight. Binay Sinha remarked, “A less diversified talent pool for choosing regulators could dilute a key reform principle.” This claim strikes a chord with current conversations around the lack of sufficient, diverse expertise within regulatory agencies.
At the same time, the economic liberalization of the 1990s provided ample opportunities for private enterprises to blossom. As a result, we experienced extraordinary expansion across all sectors. As the economy changes, so too the need for skillful regulators able to steer amidst turbulent market tides grows in urgency. A more diverse regulatory environment might better ensure that growth‐encouraging policies are effectively implemented and monitored.
State-owned enterprises used to monopolize major sectors, suffocating competition and innovation. Private players have completely disrupted these sectors. Their entry has shone a critical light on the effectiveness and accountability of those regulations. Developments are quickly creating the newest sensitive areas. It’s more important than ever to give regulators the benefit of different viewpoints and lived experiences to promote an equitable economic playing field.