The thrust of the argument is that appropriate deregulation and well crafted restrictions are key to successful policy, and in India such an approach is feasible when policy makers and bureaucracy recognise that they are dealing with people with their preferences, prejudices, responses, etc., and that every regulation needs to be justified that its demonstrable benefits exceed the costs of administering regulation and overall costs of compliance with regulation.
It is heartening to note that the Prime Minister has recognised the enormity of the issue of institutional impediments in the revival of economy when he declared before the meeting of National Development Council on September 1, 2001 : “We must quickly identify and eliminate all perverse laws, regulations and procedures which lead to unproductive activities, cost increases and sap the energies of the entrepreneurs".