How India’s Regulations are Evolving with Global Trends
The Golden Sparrow is the second most populous nation on Earth, but its regulations appeared stuck in time for a while. There has since been an economic turnaround, and the Asian subcontinental country appears to have adjusted to match global trends.
Different laws, such as data protection and betting laws, have emerged to simplify responsibility. This article takes a closer look at some of these sectors.
What inspired the regulatory evolution
India’s regulatory framework has been shaped by outdated laws that date back to the colonial era. The country gained independence in 1947, but these regulations carried on for generations. Things changed in the 1990s thanks to digital awareness.
The internet has made cross-border economics more fluid, and India saw how it falls short compared to the rest of the world. Several reforms were put in place during this period, which have made a huge difference today.
There are now talks from the prime minister of India to become a 5 trillion dollar economy. Reports from Morgan Stanley suggest that this is very achievable as projections show India could become the 3rd largest economy in the world by 2028, with GDP to reach $5.7 trillion.
Technology and Data
The Digital Personal Data Protection Act of 2023 demonstrates the nation’s approach to handling personal data and its use, aligning with international best practices. The act strikes a balance between the freedom of personal data and the right of platforms to use data legally.
It is modeled after the General Data Protection Regulation of the European Union to establish rules that monitor data consent and the purposeful use of user data. The act also regulates how the data collected in India is used outside the country. It comes with stipulated penalties in the case of any breaches, just like in bigger economies.
Environmental and Climate Regulations
India is a signatory to the Paris agreement, and its role is of crucial importance. With a high population comes the challenge of effective waste management, a major contributor to environmental pollution.
However, with new regulations on climate and the environment, the country is working to reduce carbon intensity and increase the production and use of renewable energy. This is to meet the demands of the agreement, which aims to limit global warming to below 2°C.
India’s regulations provide listed companies with stronger climate disclosure mandates, promoting green finance and investing in ESG (Environmental, Social, and Governance), and developing a carbon trading market similar to the one in the United States. Also, India’s growing interest in electric vehicles and solar energy reflects the nation’s desire to align with the UN’s Sustainable Development Goals (SDGs).
Corporate Governance and Financial Regulation
In recent years, the corporate governance space in India has seen regulatory changes that promoted transparency, accountability, and investor confidence. The Securities and Exchange Board of India (SEBI) continually updates its Listing Obligations and Disclosure Requirements (LODR) to align with global standards.
In the Third Amendment of 2024, the SEBI now requests listed entities to have full-time compliance officers who must be key managerial personnel (KMP) and should not be more than one level below the board of directors. With new rules on investor grievances, Related Party Transactions, and the strengthening of the audit committee, the rights of shareholders are strengthened, just as financial integrity is encouraged.
The SEBI Amendment wasn’t the only regulation change happening in the sector. The Companies Act of 2013 overthrew the regulation that had governed the operations of corporate entities since 1956. Additionally, the National Financial Reporting Authority was established to oversee the audit profession and enhance transparency and accountability in financial reporting.
Labor and employment regulations
The nature of work has evolved in the last decade, and India is changing its labor laws to fit into the global perspective. The country consolidated over 40 labor laws into four labor codes to make compliance and seamless operation quite easy for employers and employees. These codes are about wages, industrial relations, social security, and occupational safety.
The emergence of COVID brought about the prevalence of the gig economy. Now, the country is working to regulate that section of the economy to protect workers, especially those working in platform-based employment models.
Betting and Gambling Laws
The betting and gambling sector in India is quite complicated. The Public Gambling Act of 1867, which still influences the landscape today, originally prohibited all forms of gambling except skill-based games where outcomes are influenced more by a player’s ability than pure chance.
In 1949, the Indian Constitution granted states the authority to regulate gambling within their territories. As a result, gambling laws differ significantly across the country. While many states maintain strict bans, others like Goa, Sikkim, and the union territories of Daman and Diu permit land-based casinos.
Online gambling is where things get even more nuanced. Despite the lack of a nationwide legal framework explicitly regulating online casinos, there are currently no federal laws that prohibit online gambling for Indian players. This legal grey area has created an opportunity for offshore platforms to offer casino games and sports betting options to Indian users, provided they adhere to specific guidelines and ensure a safe and transparent gaming environment.
Still, industry experts and international observers continue to push for clearer, more unified national regulations. If India wants to compete with the multi-billion-dollar gambling markets in the US or the EU, a modernized legal structure that addresses both domestic and international operators will be essential — especially as more Indian players embrace digital gaming and betting platforms.
Final thoughts
Several sectors of the Indian economy are witnessing evolving regulations. These sectors include betting and gambling, labor and employment, and technology, among others. While development is fast-paced in some sectors, it is more gradual in others.
However, with factors such as international trade agreements, judicial activism, and civic concerns, it is expected that the country will continue to reform its regulations to match global standards.
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