MAINS 2015
GS2
12.5 marks
For achieving the desired objectives, it is necessary to ensure that regulatory institutions remain independent and autonomous. Discuss in the light of experiences in the recent past.
WRITE IN
9 min
200 words
What the examiner wants
Using recent experience, discuss why regulators need independence and autonomy to achieve their aims.
DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.
Demand-wise check
- 1Why: technical decisions free of political cycles, investor confidence, fair competition, consumer protection≈35 words
- 2Experience: 2G spectrum and TRAI, coal block allocation, Centre-RBI friction (Section 7 debate, 2018), post-retirement jobs for regulators≈35 words
- 3Threats: appointments and removal by government, financial dependence, overlapping mandates, tribunal capture≈35 words
- 4Reforms: fixed tenure, transparent selection, own funds, parliamentary accountability (FSLRC)≈35 words
Open in about 30 words and close in about 30.
Answer plan
Role of regulatorsRecent cases of interferenceThreatsReforms balancing autonomy and accountability
Where marks usually go
- No recent examples despite 'experiences in the recent past'
- Forgetting accountability to Parliament
Draw this
- Balance scale: independence (fixed tenure, own funds, transparent selection) vs accountability (reports to Parliament, audit, judicial review)
Value addition
- CommitteeThe Financial Sector Legislative Reforms Commission (Justice B.N. Srikrishna, 2013) drafted an Indian Financial Code with clear regulator independence and accountability.FSLRC, 2013
- EventIn 2018 the government's reported moves to invoke Section 7 of the RBI Act for the first time sparked debate on central bank autonomy.RBI Act, 1934
Next: plan for one minute, write it in 9 minutes, then get it checked.