India Ease of Doing Business Reforms: What Changes

India’s business reform agenda

India’s ease of doing business reforms are drawing attention across social media and policy discussions. The government says the programme aims to reduce compliance burdens for enterprises. It also focuses on transparency, entrepreneurship and wider market access. A central theme is the transition from permission-based regulation to trust-based governance. The Department for Promotion of Industry and Internal Trade, or DPIIT, is driving several of these measures. The reforms cover business entry, approvals, inspections, taxation and cross-border trade. They apply to businesses of different sizes, including startups and MSMEs. Their effectiveness will depend on consistent implementation across institutions and locations.

National Single Window System expands

The National Single Window System, or NSWS, is a digital platform for identifying and applying for approvals. Its Know Your Approvals module helps businesses understand permissions needed to establish and operate ventures. The platform has received 15,49,850 applications, according to the official material. It has registered 5,76,778 businesses and delivered more than 8.5 lakh approvals. NSWS integrates services from 34 States and Union Territories. It also connects 32 Central Ministries and Departments. The portal is available in 22 Indian languages. PESO modules have been digitised and integrated with NSWS as part of the broader approvals framework.

Compliance reduction remains a key measure

The government says 47,957 compliance requirements have been reduced across Central Ministries and States and UTs. These changes include digitisation, simplification, decriminalisation and elimination of requirements. Digitisation accounts for 22,290 of the reduced compliances. Another 16,141 compliances have been simplified. The official figures list 5,255 compliances as decriminalised. A further 4,271 have been eliminated. The stated objective is to lower compliance costs and remove unnecessary requirements. This approach places regulatory burden reduction at the centre of the reform programme.

Jan Vishwas changes procedural penalties

The Jan Vishwas Acts are an important part of the decriminalisation push. The 2023 Act decriminalised 183 provisions across 42 Central Acts. The Jan Vishwas Amendment of Provisions Act, 2026 decriminalises 717 provisions. It also amends 784 provisions across 79 Central Acts. The 2026 changes cover 23 Ministries. Together, the two Acts have decriminalised 900 provisions of Central laws. The reforms target minor procedural offences within the government’s wider compliance agenda. The stated direction is towards facilitation rather than punitive action for such provisions.

BRAP shifts focus to state delivery

The Business Reform Action Plan, or BRAP, was launched in 2015. It promotes regulatory simplification and transparency across States and Union Territories. Its coverage includes single-window clearances, land, labour and inspections. Taxation and environmental approvals are also among its reform areas. Seven editions of BRAP have been completed so far. The eighth edition, BRAP 2026, was formally rolled out on 11 November 2025. The framework is designed to compare regulatory requirements between jurisdictions. It seeks to encourage states to improve service delivery and reduce compliance burdens.

District reforms target last-mile approvals

DPIIT has introduced the District Business Reform Action Plan, or DBRAP. It is a state-led effort to localise BRAP reforms at district level. District Collectorates, Development Authorities and Urban Local Bodies are central to this plan. These bodies handle many approvals, inspections and business facilitation services. DBRAP identifies 154 reforms with defined objectives and assessment checklists. The guidebook includes district approvals and service delivery as a key area. It also covers digitisation and mutation of property records. Risk-based inspections, startup support and industrial infrastructure are among the other reform areas.

Labour and licensing rules are changing

Twenty-nine Central labour laws have been consolidated into four Labour Codes. The threshold for prior permission for lay-off or closure has risen from 100 to 300 workers. For factories using power, the applicability threshold has increased from 10 to 20 workers. For factories not using power, it has increased from 20 to 40 workers. The contract-labour licensing threshold has moved from 20 to 50 workers. A 30-day compliance notice is now mandatory before legal action. PESO licence validity has been extended from five years to ten years. Online NOCs and fee relaxations for women and MSMEs are also part of PESO-related changes.

Trade, investment and finance reforms

ICEGATE enables electronic filing, duty payment and document amendments for customs users. It also supports query resolution and refund processing for cross-border trade. The Union Budget 2026-27 proposes digital trade facilitation and trust-based customs systems. It also includes proposed measures on tax certainty, compliance reduction and litigation. Seventeen sectors have moved to the automatic route for foreign direct investment. In defence, the automatic-route FDI limit for new industrial licences has risen from 49% to 74%. Up to 100% automatic-route FDI is permitted in telecommunications, specified aviation activities, satellite component manufacturing and broadcasting distribution. The maximum guarantee cover per borrower has increased from ₹10 crore to ₹20 crore, while the annual fee is reduced to 1% for 27 Champion Sectors.

What businesses should watch next

The reforms are built around digital systems and reduced procedural requirements. NSWS, BRAP and DBRAP place significant importance on the delivery of approvals. The district programme makes local implementation particularly relevant for businesses seeking permits or land-related services. Labour, customs and investment rules are also part of the wider framework. The official material presents the measures as a way to make entry and expansion easier. However, the practical outcome will vary with adoption by departments, states and local bodies. Businesses will need to track the relevant portal, approval process and regulatory threshold for their sector. The next phase of the agenda is likely to be judged by service quality and implementation consistency.