Deregulation cannot be done till market failure is removed.

No regulation is welcomed by industry. And for good reason. Academic theory holds that regulation exists to correct market failure(or the chance of that happening). Regulation does impose costs on everyone involved, and the expense is borne ultimately by end users. But instead of terming it a deadweight cost and calling for 'light weight regulation','self regulation' etc, one should first introspect whether the market imperfections have been corrected or whether the policy framework is self reinforcing. If not, regulation should stay. Few people can openly advocate this position though.

Below are a few areas where 'reform' is often sought, but I propose to show that relaxing regulation would be a disaster, as the market is not mature enough to ensure good behaviour.

1. Labour laws
2. Corporate disclosures
3. Corporate governance
4. Environmental assessment
5. Corporate pay-especially to promoters/their relatives

Ironically, people love regulation when it suits them. For instance,

1. Exercise of eminent domain for private land acquisition 
2. Coercive savings direction into infrastructure/favoured sector
3. FDI caps/restriction on foreign competition
4. Export bans/tax on raw materials(rice/wheat/onion/iron ore)
5. Subsidized fuel/minerals/freight

So before signing up on that petition opposing 'Big Brother' government, think hard on what you are signing up for. The results may surprise you.