Sanjeev Sanyal On How Modi Govt Stays Efficient | India Economic Summit | IES 2024

Summary

In this insightful discussion, Sanjiv Syal elaborates on India's ongoing government efficiency reforms, highlighting process reforms aimed at enhancing the effectiveness of the bureaucracy. Drawing comparisons with international efforts like Elon Musk's government efficiency commission in the US, Syal showcases numerous examples of how outdated practices, defunct organizations, and cumbersome regulations are being streamlined. He shares humorous and practical cases, such as the delisting of irrelevant national monuments, simplifying company shutdown procedures, and updating labeling regulations, demonstrating how these seemingly small changes collectively improve government functioning and business efficiency.

Takeaways

• 😀 India has been working on government efficiency reforms for years, with a focus on 'process reforms' rather than just structural changes.
• 😀 'Process reforms' are smaller, practical changes that improve government efficiency but do not alter the overall structure, such as improving regulatory processes and reducing bureaucracy.
• 😀 An example of inefficiency highlighted was the 3,700 nationally protected monuments in India, many of which are irrelevant or missing, yet still listed as national monuments.
• 😀 Some monuments, like the John Nicholson statue, were included in the national list due to historical colonial significance but were not relevant post-independence. These have now been delisted.
• 😀 The government has been systematically identifying and closing down defunct organizations, with over 800 autonomous bodies in India, many of which no longer serve any significant purpose.
• 😀 India has made significant improvements in simplifying processes, such as shutting down companies voluntarily, which used to take years but now takes just 9-20 days on average.
• 😀 Another example of process reform was the removal of outdated telecom regulations, such as the requirement to obtain specific permissions to work from home, which was abolished in 2020.
• 😀 The introduction of the online system for shutting down companies streamlined the process, reducing delays and making it more efficient than countries like Singapore.
• 😀 Legal Metrology and labeling laws in India create challenges in manufacturing and distribution due to frequent, unpredictable changes. A proposal is being considered to only update labeling laws twice a year (on July 1st and January 1st) to improve consistency.
• 😀 While structural reforms are important, small process reforms have a significant cumulative impact on efficiency across various sectors, often requiring minimal effort but yielding large benefits.

Q & A

What is the focus of Sanjiv Syal's talk in this transcript?

Sanjiv Syal's talk focuses on the concept of 'process reforms' in the Indian government, explaining how small, practical changes are being implemented to improve efficiency in various government operations.

How are process reforms different from structural reforms?

Process reforms are smaller, more targeted changes that enhance the efficiency of existing systems, whereas structural reforms involve major changes to the underlying framework or systems, such as the introduction of GST or the Insolvency and Bankruptcy Code.

What are some examples of inefficiencies in the Indian government highlighted in the talk?

One example is the outdated list of 3,700 nationally protected monuments, many of which should no longer be protected. Another is the existence of defunct autonomous bodies that continue to drain resources without serving any current purpose.

How did Sanjiv Syal address the inefficiency related to the John Nicholson statue?

Sanjiv Syal shared that the John Nicholson statue, despite being removed in the 1960s, was still listed as a national monument and continued to impose regulations on the surrounding area. He highlighted how this was eventually corrected by delisting the monument.

What effort was made regarding defunct autonomous bodies?

Sanjiv Syal mentioned that the Indian government has been systematically identifying and shutting down or merging defunct autonomous bodies, such as the All India Handicrafts Board and the Children’s Film Society, in order to reduce inefficiency.

What significant change did the government make regarding working from home laws?

Before 2020, working from home was technically illegal under outdated telecom regulations. However, during the COVID-19 lockdown, these rules were relaxed, and efforts were made to fully unwind these restrictions, significantly reducing compliance requirements for BPO and IT services.

What did Sanjiv Syal reveal about the challenges of shutting down a company in India?

Sanjiv Syal explained that the process of shutting down a company in India used to take years due to bureaucratic hurdles, such as needing no-objection certificates from various departments in a specific sequence. This process has now been streamlined, reducing the average time to shut down a company to about 90 days.

How has the process of shutting down a company been improved?

The process has been made much faster by moving it online. It now takes an average of just 90 days to shut down a company, compared to the previous average of over 500 days. This was achieved through automation and reducing bureaucratic delays.

What proposal did Sanjiv Syal make regarding labeling laws in India?

Sanjiv Syal proposed that changes to labeling laws be announced only twice a year, on July 1st and January 1st. This would reduce wastage in the supply chain caused by constantly changing regulations, making it easier for manufacturers and distributors to comply with the rules.

Why are process reforms considered important for government efficiency?

Process reforms, although often small and overlooked, have a significant cumulative impact on government efficiency. By addressing inefficiencies in routine operations, these reforms can lead to smoother functioning, lower costs, and better outcomes in various sectors.