Analysing Governance of Government Regulations across Sectors and Risk of Compliance Fatigue on National Economic Security

This paper examines the governance architecture of cross-sectoral regulations and its implications for national economic security through the mediating mechanism of compliance fatigue. While regulatory frameworks are essential for market stability and public welfare, their fragmented governance across sectors creates cumulative burdens that erode institutional capacity and economic competitiveness. Drawing on regulatory governance theory, institutional economics, and comparative policy analysis across financial services, healthcare, and digital sectors in India, the European Union, and the United States, this study reveals that regulatory misalignment generates systemic inefficiencies that threaten economic resilience. The analysis demonstrates that compliance fatigue, manifested as resource diversion, innovation slowdown, and adaptive non-compliance, functions as a latent macroeconomic risk undermining national security objectives. This paper proposes an adaptive regulatory alignment framework emphasizing horizontal coordination, risk-based proportionality, and technology-enabled compliance as complementary pathways for enhancing both regulatory effectiveness and economic security. The findings suggest that strategic regulatory governance represents not a constraint on economic activity but an enabler of sustainable competitiveness when properly designed.