Removing barriers to entry

Policies should focus on improving the ease of entering business, not just the ease of doing business

It is nearly time for another Budget and new policy announcements by the government. For speeding up economic growth, we may think in terms of a few grand policies or a hundred small steps. Here I take the latter approach and consider just one policy. There is a need to remove barriers to entry in businesses. I will confine myself here to the entry barriers for new asset management companies (AMCs).
 

Mutual funds are run by AMCs. At present, in India such AMCs are required to have a minimum capital of Rs 50 crore (there are other restrictions as well).