Five Regulatory Agencies That India Can Do Without

While some of them do provide efficient services, here’s a list of five regulatory agencies that we think India can do without...

India is a big country with a big government. Bigger the government, more the rules and lesser the freedom for its people. To safeguard our interest we have various regulatory agencies which look after the price, quality and other aspects of goods and services.

But are these agencies really helpful or harmful?

While some of them do provide efficient services, here’s a list of five regulators that we think India can do without –

Bureau of Indian Standards (BIS)
The Bureau was set up in 1986 for efficient standardisation and certification of goods and services, to provide safety and reliability to consumers, minimising health hazards and other similar goals. While it is essential that consumers are safeguarded from hazardous goods and a guarantee of quality is desirable, it can be done without the taxpayers’ money through external rating agencies such as the International Organisation for Standardization.

Also, in most industries, there are associations that establish their own quality certifications. For examples, the TUV, a private agency, provides certification for construction equipment vehicles which is widely recognized. Similarly, companies like Microsoft and Cisco issue their own certifications for their suppliers and even to individuals for possessing certain abilities. Lastly, consumers are rational enough to decide for themselves through such standardisations without guidance from the government.

National Pharma Pricing Authority (NPPA)
The agency, established in 1997, regulates the prices of controlled bulk drugs and monitors prices of decontrolled drugs to keep them affordable. However, NPPA’s efficiency in achieving either of these goals is questionable. In fact, the price caps introduced by NPPA ends up makes the drugs vanish from the market or drive their sale into the black market.
Instead of price controls, there are alternative policy solutions that will bring down rates of drugs. Since healthcare policies affect the health of every Indian we need to tread carefully. It is the outcome that matter and not just the intentions of the regulators.

Central Board of Film Certification (CBFC)
CBFC is a censorship and classification government body formed in 1952. Without its certification, no film can be released in India. The Board has constantly been in the crosshairs of the film fraternity and the public. Controversy never leaves this body.
Certification of films can be done by private agencies, like how Advertising Council of India regulates the advertising industry. The theatres can also levy their own rules of admission depending on age and other grounds; like they do in bars.

Warehouse Development and Regulatory Authority (WDRA)
Imagine you have stored something in your house. How would you feel if some elderly person in your neighbourhood comes and tells you how to store it? Wouldn’t you be irritated? This is what this agency does. It tells companies where and how to store their goods and was set up specifically to recognise warehouse receipts as a negotiable instrument, despite that being the case since 1881 as per the provisions of the Negotiable Instruments Act. Companies are rational enough to make these decisions on their own regarding storage of their assets. Also, there are other mechanisms such as insurance and contracts to minimise the damage done. Cities also have their local regulations, fire safety guidelines and licensing processes.

Central Electricity Regulatory Commission
Electricity is a state subject under the Indian Constitution. All state governments already have rules and regulations related to electricity and electricity boards. Why do we need one more agency to perform the same task of efficiently providing electricity? Multiple agencies with overlapping mandates end up diluting accountability, something with every politician and bureaucrat loves.

These agencies have been set up with noble intentions for our well-being. However, their outcomes are often harmful and cause unnecessary burden on the taxpayers. In all the above cases, the public will be better served if these agencies were shut down. In addition, the economy will also benefit from streamlining of the laws and regulations.