India’s chief economic adviser, V. Anantha Nageswaran, has advised regulators, particularly those in the gambling industry, to optimize oversight instead of aiming for maximum control, promoting economic progress in the process.
During his address at the Confederation of Indian Industry’s (CII) Global Economic Policy Forum in New Delhi, Nageswaran expressed concerns that excessive regulations in sectors like online gaming could hinder growth and curtail innovation. However, he also cautioned against the complete lack of regulatory measures, which could lead to abuse and misconduct within the industry.
He highlighted the challenge of striking a balance in a country like India, which still grapples with widespread financial illiteracy. He remarked, “Given our nation’s economic status and the prevalent financial naiveté, which isn’t uncommon even in advanced economies, we must discern when to support ambitious ventures while considering the social repercussions in various sectors like cryptocurrency, bitcoins, online gaming, etc.”
For areas necessitating regulation, Nageswaran emphasized the need for transparency from those in authority. This involves communicating the rationale behind specific regulations, outlining their objectives, and providing the supporting data.
Nageswaran stated, “The principles of transparency and weighing social costs against benefits should apply equally to regulators as well as regulated entities. Regulators must recognize their role as custodians of unelected authority.”
He also critiqued the regulators for their past focus on punitive measures rather than fostering sectoral growth. He questioned, “In our country, we’ve prioritized ensuring not a single incident of malpractice goes unchecked. This focus needs reevaluation.”
“This brings us to the real question: In this context where growth is crucial, what should the regulators aim to optimize instead of maximizing? This reflects the kind of introspection necessary among regulators.”
Responding to Nageswaran’s insights on LinkedIn, the All India Gaming Federation supported his viewpoint, arguing that his suggestion could significantly benefit the Indian market’s development.
The association pointed out, “Regulators should prioritize optimizing over maximizing oversight, as highlighted by chief economic advisor Nageswaran. This strategy is especially crucial in fast-evolving sectors like online gaming, where too much regulation can hinder innovation and growth, yet a total absence can lead to abuses.”
Finding the right equilibrium is pivotal for the sustained economic advancement of the online gaming industry.
Additionally, India has maintained its 28% Goods and Services Tax rate earlier this year, a decision that recently led Betway to exit the market.
This article was initially published on EGR Intel and can be found [here](https://www.egr.global/intel/news/indias-chief-economic-advisor-calls-for-a-balanced-approach-to-online-gaming-regulation/).