Making Budget 2025 reforms work: The road to effective implementation

The FM has proposed some interesting regulatory reforms. The announcements need to be nuanced before implementation

For over a decade now,  regulatory difficulties in India have risen to prominence. In the 2025 Budget speech, the finance minister (FM) announced some interesting moves aimed at addressing these concerns. In the field of finance, a mechanism under the Financial Stability and Development Council (FSDC) was announced to evaluate the impact of current financial regulations and subsidiary instructions, as well as formulate a framework to enhance their responsiveness and support the development of the financial sector. 

Regulation is the use of state power to modify behaviour. Ideally, the areas of coercion should be linked to addressing market failure, and