Minister for Divestment, Communications and Information Technology Arun Shourie said there was a clear delineation between the roles of the government and the different regulators and dispelled fears of one encroaching on the other's territory.

"We all have our own functions to perform. Neither of us can take the powers of the other," Shourie said at a seminar organised jointly by the London School of Economics and the Confederation of Indian Industry.

He said concerns had been expressed in government circles over the role of regulators and there was a perception that they were assuming more powers than the government.

The minister said regulators would have a crucial role to play in the coming days and would need to review the extent to which they would micro-manage the sectors under their control.

Speaking on the same topic, Central Electricity Regulatory Commission chairman A K Basu said regulators were accountable to Parliament.

Telecom Regulatory Authority of India chairman Pradip Baijal added that regulators were also subject to scrutiny by the judiciary and the media.

"Regulators can't work in an environment in which they are totally pervious of outside control," he said.

Shourie also said policymakers needed to weigh the future implications of their decisions. "In India, we don't look far ahead and are preoccupied with the problems of the day," Shourie said, adding that the focus should also be on projects that provide jobs to millions and in turn stimulate the economy.

"There are vast organised manpower resources that India must use," he said.

He also advocated decentralised labour laws and more debate on government processes.

Shourie said more special economic zones should be created where Southeast Asian labour laws would apply.

The minister said certain processes were hampering growth and deterring foreign direct investment and argued for greater emphasis on enforcement mechanisms to curb corruption, recover loans and protect environment.

Pointing out that the process of development was uniform, Shourie said Uttar Pradesh and Bihar were examples of laggards.

He also said stress should be laid on ensuring that central allocations were based on select indicators of performance.