Avirup Bose & Pratik Datta: An Act that hinders competitiveness

The provisions of the Real Estate (Regulation and Development) Act, 2016, are more coercive than what were required to address market failure

Avirup Bose & Pratik Datta

A market economy requires government interventions to precisely address identified market failures. However, in choice of government interventions, the least coercive ones should be preferred. Because lesser the coercion, lesser are the possibilities of distorting the competitive forces within the market economy. In parliamentary democracies, legislation making is often a populist reaction, where accounting for the impact of regulations on the long-term interests of the public and the economy, may seem politically esoteric. However, for an India focused on improving its World Bank "Doing ...