📷 Image: Wikimedia Commons / Chatham House
Business
Shashi Tharoor labels bureaucratic delays as India’s ‘Fear Tax’ hurting growth
✍️ Business Today
🗓 29 Aug 2026, 07:38 PM
👁 28
In a Business Today interview, Minister Shashi Tharoor described the cumulative impact of administrative hold‑ups as a ‘fear tax’ that drags down India’s economic growth.
Minister Shashi Tharoor, speaking to Business Today, warned that the persistent slowdown caused by administrative bottlenecks amounts to a hidden levy he termed the ‘fear tax’. He said the term captures the anxiety investors face when projects are stalled by procedural delays.
Tharoor explained that each day a clearance is postponed translates into lost productivity, higher financing costs and reduced confidence among domestic and foreign investors. He cited examples such as delayed land acquisition for infrastructure and prolonged approvals for manufacturing units, noting that these setbacks collectively shave off a measurable share of the country’s GDP growth.
Calling for swift reforms, Tharoor urged the government to streamline clearances, adopt digital platforms and enforce accountability within ministries. He emphasized that cutting the ‘fear tax’ is essential for unlocking the country’s growth potential and maintaining India’s competitive edge in the global market.
Tharoor explained that each day a clearance is postponed translates into lost productivity, higher financing costs and reduced confidence among domestic and foreign investors. He cited examples such as delayed land acquisition for infrastructure and prolonged approvals for manufacturing units, noting that these setbacks collectively shave off a measurable share of the country’s GDP growth.
Calling for swift reforms, Tharoor urged the government to streamline clearances, adopt digital platforms and enforce accountability within ministries. He emphasized that cutting the ‘fear tax’ is essential for unlocking the country’s growth potential and maintaining India’s competitive edge in the global market.