Pitching for a better business environment for start-ups, Reserve Bank Governor Raghuram Rajan said India has done away with the licence raj, but 'inspector raj' continues to some extent. He also said that regulations should be for the betterment of the industry and not to discourage entrepreneurs and suggested a system of self-certification for the industries with some checks on the part of the authorities to prevent any misuse. Advocating an easier set of regulations for small and medium enterprises in India, Rajan gave examples of the UK and Italy saying, "We have seen that while regulations are liberal in the United Kingdom, it is very heavy in Italy. It is seen that the start-ups in the UK grow faster than their Italian counterparts." Addressing ministers, bankers, bureaucrats and other stakeholders at the 4th Odisha Knowledge Hub in Bhubaneshwar on Saturday, the RBI chief also said Indian economy is in the midst of recovery but some areas are still under stress.