EconReads
Donate

India's Private Security Industry

The PSARA Law

How the Private Security Agencies (Regulation) Act of 2005 requires agencies to be licensed and guards to be trained, and why enforcement is patchy.

The Private Security Agencies (Regulation) Act, 2005 (PSARA) regulates the industry.

Requirements

  • Agencies need state licences.
  • Guards need training and police verification.
  • Minimum standards for supervisors.

Enforcement

Many agencies operate without licences or skip training.

Why

  • Weak state enforcement.
  • Clients prefer cheap agencies.

Updates

The government has updated rules, including allowing online licensing and training norms.

Economics

Regulation aims to protect clients and guards, but costs push some agencies informal.

The unlicensed agency

A small agency supplies untrained guards to a society at low rates without a PSARA licence.

Thinking all security agencies are licensed

Many operate without licences.

Key takeaways
  • PSARA was passed in 2005.
  • Agencies need licences.
  • Guards need training.
  • Enforcement is patchy.
1 min read

No recording for this one yet - EconReader can read it aloud for you.

Welcome to EconReads

This site is made for visually impaired learners, so our read-aloud reader is already switched on to help you explore hands-free.

You're in control - turn it off any time using the Reader button at the top of the page.

EconReader Ready