“Discuss the challenges of regulatory governance in India in light of recent debates around the role of independent regulators.”

In contemporary public administration, regulatory governance has become a fundamental component. To guarantee openness, effectiveness and the depoliticisation of decision-making, independent regulators were set up in industries like telecom (TRAI), finance (SEBI), energy (CERC) and education (UGC). Recent discussions. It  however draws attention to a number of difficulties.

Regulatory Governance Challenges:

Accountability versus Autonomy: The independence of regulators is frequently undermined by political meddling in their selections and operations. For instance disagreements over TRAI’s spectrum price decisions exposed pressure from the government.

Regulatory Capture: As demonstrated in the financial sector, regulators occasionally support the very sectors they oversee rather than upholding the public interest.

Overlap of Jurisdictions: Confusion arises from several agencies with competing mandates (TRAI vs. Competition Commission of India for example).

Lack of Transparency: A lot of regulatory orders lack public consultation or clear justification which undermines confidence.

Crucial Aspects: 

The key difficulty is making sure that regulators continue to operate independently while still answering to democratic institutions preventing them from turning into unaccountable power centres or instruments of executive domination.

Way Forward:

•  Establishing an open, merit-based collegium system for appointments that lessens political influence is the way forward.

• Parliamentary supervision ought to be planned so that it assesses performance without interfering with the regulator’s day-to-day operations.

• To ensure that choices are both technically sound and supported by evidence, regulatory organisations must adopt data-driven techniques and build strong internal expertise.

• To improve accountability and public trust in regulatory processes, it is necessary to institutionalise stakeholder consultations, citizen participation, and frequent public reporting.

UPSC General Studies Paper Preparation

Public Administration Optional Exam Preparation