Backgrounder: Ease of Doing Business reforms

India’s Ease of Doing Business reforms: what happened?

Every form, licence and inspection costs a business time. India’s reform story since 2014 has been about cutting those steps, putting them online and treating minor lapses as civil, not criminal. This backgrounder pulls the main numbers together, which makes it a handy revision sheet.

• The note groups reforms by the life of a business: entry, property, permits, markets, credit, tax, trade, digital infrastructure, trust-based rules and insolvency.
• It marks a shift from a compliance-heavy system to a facilitation-driven one.

Which reforms made starting a business easier?

• Startup India (January 2016): 502 recognised startups in 2016 to over 2.23 lakh by March 2026, with 23.3 lakh direct jobs; about 48% have at least one woman director or partner.
• SPICe+ (2020): one web form, 11 services from 3 Central ministries; covers incorporation, DIN, PAN, TAN, EPFO, ESIC and more.
• Udyam Registration (July 2020): free, paperless, self-declared MSME registration linked to CBDT and GSTN.

How have permits and land records changed?

• OSH Code, 2020 (labour codes in force November 2025): replaced 13 Central labour laws; one registration in place of six; factory licence threshold raised from 10 to 20 workers (with power) and 20 to 40 (without power); 30-day deemed permission for factory building.
• Consent to Operate under the Air and Water Acts now stays valid until cancelled; MSEs in notified estates get deemed Consent to Establish.
• PARIVESH: average environmental clearance time 64 days in 2025-26 against a 105-day norm.
• DILRMP: cadastral maps digitised for 97.37% of the country; ULPIN (“Aadhaar for Land”, 14-digit) given to over 36 crore parcels.

Which laws anchor the trust-based approach?

• Jan Vishwas (Amendment of Provisions) Act, 2023: decriminalised 183 provisions across 42 Acts.
• Jan Vishwas (Amendment of Provisions) Act, 2026 (in force 7 April 2026): decriminalised 717 provisions; amended 784 provisions of 79 Central Acts under 23 Ministries; rationalised more than 1,000 offences.
• Insolvency and Bankruptcy Code (Amendment) Act, 2026: 14-day timeline for the adjudicating authority to accept or reject applications; limits on withdrawal after a set stage.

What do the numbers show?

Why does India’s Ease of Doing Business reforms matter?

What are the challenges in India’s Ease of Doing Business reforms?

• The World Bank Doing Business ranking cited ends in 2019; later progress rests on other indices.
• Many reforms depend on State and district implementation, which is uneven.
• Compliance cuts must stay in force; new rules can add burden back.

What should be done next on India’s Ease of Doing Business reforms?

• Complete the eighth BRAP and roll out D-BRAP widely.
• Extend NGDRS and ULPIN so land titles are clear across States.
• Track the 14-day IBC admission timeline in practice.

What can Prelims ask on India’s Ease of Doing Business reforms?

• Jan Vishwas Act, 2026: in force 7 April 2026; 717 provisions decriminalised; 79 Central Acts.
• Jan Vishwas Act, 2023: 183 provisions across 42 Acts.
• ULPIN: 14-digit “Aadhaar for Land”.
• NSWS (2021): 32 Central departments, 34 State Governments.
• India in World Bank LPI: 38th (2023).
• Export Promotion Mission sub-schemes: Niryat Protsahan and Niryat Disha.

How to write about India’s Ease of Doing Business reforms in Mains

Practice question (15 marks, 250 words): “From compliance to facilitation.” Assess India’s Ease of Doing Business reforms since 2014, with emphasis on decriminalisation and digital platforms.

• Intro: rank 142 to 63; shift to facilitation.
• Entry and permits: SPICe+, Udyam, OSH Code, CTO validity.
• Trust: Jan Vishwas 2023 and 2026; 47,000 compliances cut.
• Digital: NSWS, PARIVESH, GSTN, UPI.
• Gaps: State capacity, land titles; way forward BRAP/D-BRAP.