{"id":21283,"date":"2026-03-09T10:53:41","date_gmt":"2026-03-09T05:23:41","guid":{"rendered":"https:\/\/theeducationoverview.in\/?p=21283"},"modified":"2026-03-09T10:53:41","modified_gmt":"2026-03-09T05:23:41","slug":"policy-reforms-that-transformed-business-environment","status":"publish","type":"post","link":"https:\/\/theeducationoverview.in\/?p=21283","title":{"rendered":"Policy Reforms That Transformed Business Environment"},"content":{"rendered":"<div class=\"text-center event-heading-background\">\n<h2 id=\"Titleh2\" style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Policy Reforms That Transformed Business Environment<\/strong><\/span><\/h2>\n<h3 id=\"Subtitleh3\" style=\"text-align: justify;\"><\/h3>\n<\/div>\n<div id=\"PrDateTime\" class=\"ReleaseDateSubHeaddateTime text-center pt20\" style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Posted On: 05 MAR 2026 11:50AM by PIB Delhi<\/strong><\/span><\/div>\n<div class=\"pt20\" style=\"text-align: justify;\"><\/div>\n<div class=\"table-responsive\" style=\"text-align: justify;\">\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"5\" align=\"center\">\n<tbody>\n<tr>\n<td>\n<div>\n<p><span style=\"color: #3366ff;\"><strong>Key Takeaways<\/strong><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><strong>\u00b7 Business registrations in India grew by ~27% from 1.55 lakh in 2020\u201321 to 1.98 lakh in 2025\u201326 (as on 3 February 2026).<\/strong><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><strong>\u00b7 The Union Budget 2026\u201327 further enhances India\u2019s ease of doing business ecosystem with various measures proposed such as digital trade facilitation, tax certainty, reduced compliance and litigation, trust-based customs systems, and an investment-friendly tax regime.<\/strong><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><strong>\u00b7 Institutional reforms such as Start-up India, Credit Guarantee Scheme, digital credit assessment models etc. are creating a transparent, tech-enabled, investor-friendly ecosystem.<\/strong><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><strong>\u00b7 Parallel regulatory reforms such Jan Vishwas Act, IBC, MAT etc. are prioritizing capacity-building, regulatory coherence, and a governance model rooted in trust and accountability.<\/strong><\/span><\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>India: An Emerging Global Business Powerhouse<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Over the past few years, India has emerged as one of the most attractive destinations not only for investments but also for doing business. Over a decade ago, the Government launched an ambitious program of regulatory reforms aimed at making it easier to do business in India.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong><img decoding=\"async\" src=\"https:\/\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image003I7UF.jpg\" alt=\"\" \/><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>With the launch of Ease of Doing Business (EoDB) initiatives and a wave of business-friendly reforms, India has now ushered in a new era of efficiency and opportunity. The country- and its vibrant community of young entrepreneurs- now stand empowered and ready to seize the advantages of this reformed, growth-oriented ecosystem. The Indian business ecosystem has strengthened and the same is witnessed by an approximate 27% increase in the\u00a0number of active registered companies in just five years. It \u00a0grew from 1.55 lakh in 2020\u201321 to 1.98 lakh in 2025\u201326\u00a0(as on 3 February 2026).<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The\u00a0RBI\u2019s Business Expectations Index, which has consistently stayed above the neutral benchmark of 100 through FY 2024-25 and into July to September (Q2) of the FY 2025-26, indicates positive sentiment regarding future output, employment, and investment.\u00a0Together, these indicators reinforce the continued resilience of industry sentiment and reflect a business environment where firms remain confident about demand and growth prospects.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Government\u2019s Strategic Focus on Ease of Doing Business<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>EoDB is fundamental to fostering entrepreneurship, innovation, and wealth creation. Recognising this, the Government has made \u201cimproving the business environment\u201d a strategic priority to attract investment, stimulate enterprise, and accelerate economic growth. By reforming regulatory and legislative frameworks, streamlining procedures, and removing redundant compliances, the Government aims to create a more transparent, efficient, and predictable ecosystem for businesses.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Today, EoDB stands as a central pillar of India\u2019s reform agenda.\u00a0The Union Budget 2026\u201327\u00a0further advances this vision through measures promoting\u00a0digital trade facilitation, tax certainty, reduced compliance and litigation, trust-based customs systems, and an investment-friendly tax regime.\u00a0These sustained reforms strengthen investor confidence and reinforce India\u2019s position as an increasingly competitive and business-ready economy.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong><img decoding=\"async\" id=\"Picture_x0020_3\" src=\"https:\/\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image004B2ZX.jpg\" \/><\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Institutional Reforms Strengthening India\u2019s Business Ecosystem<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>India\u2019s reform-driven growth strategy is anchored in strengthening entrepreneurship, expanding access to finance, modernising regulatory frameworks, and enhancing trade facilitation. Through initiatives such as Startup India, credit guarantee schemes, digital credit assessment models, comprehensive insurance sector reforms, and integrated customs systems, the Government is creating a more transparent, technology-enabled, and investor-friendly ecosystem. Together, these measures not only improve EoDB but also deepen financial inclusion, boost innovation, accelerate MSME growth, and position India as a competitive global trade and investment hub.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Start-Up India<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Under the Startup India initiative, eligible companies can obtain recognition as startups from the Department for Promotion of Industry and Internal Trade (DPIIT), enabling them to access a range of benefits including tax incentives, simplified compliance procedures, fast-tracked intellectual property rights (IPR) processing, and other regulatory support. The initiative seeks to build a robust and inclusive startup ecosystem that fosters innovation, drives sustainable economic growth, and generates large-scale employment opportunities across the country.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>With over 2.16 lakh DPIIT-recognised startups as of February 2026, India stands firmly as one of the world\u2019s largest startup ecosystems.\u00a0Regulatory reforms for start-ups initiated since 2016 aim to enhance EoDB, ease of raising capital and reduce compliance burden for the startup ecosystem-<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Beyond Startup India, several initiatives have further strengthened India\u2019s startup ecosystem by promoting technological innovation, rural entrepreneurship, academic research, and regional inclusion. These initiatives ensure that startup support remains broad-based, decentralized, and closely aligned with national development priorities.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong><img decoding=\"async\" id=\"Picture_x0020_4\" src=\"https:\/\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image005YC1E.jpg\" \/><\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Credit Guarantee Scheme<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Credit guarantee schemes enhance EoDB\u00a0by providing collateral-free, or third-party guarantee-free, loans for MSMEs and startups. These schemes reduce risk for lenders, enabling easier access to finance for entrepreneurs, fostering innovation, and simplifying the overall business environment.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Targeted Schemes:<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #3366ff;\"><strong>Credit Guarantee Scheme for Micro &amp; Small Enterprises (CGTMSE):\u00a0Facilitates credit guarantees for credit support of up to \u20b910 crore to Micro and Small Enterprises (MSEs).<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Credit Guarantee Scheme for Startups (CGSS):\u00a0Supports startups by providing credit guarantees; the revised framework has enhanced guarantee coverage, increasing the maximum limit from \u20b910 crore to \u20b920 crore per eligible borrower.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Credit Guarantee Scheme for Exporters (CGSE):\u00a0Additional collateral-free credit support of up to \u20b920,000 crore to direct and indirect exporter MSMEs.<\/strong><\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>By facilitating, or speeding up, the loan approval process, these schemes also help reduce time and cost associated with accessing capital.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Credit Assessment Model (CAM)<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The public sector banks (PSBs) have launched the\u00a0credit assessment model (CAM)\u00a0based on the digital footprints for MSMEs in 2025. This model aims at\u00a0leveraging digitally fetched and verifiable data\u00a0to enable\u00a0automated loan appraisal\u00a0for MSMEs,\u00a0utilising objective decisioning\u00a0for all loan applications\u00a0and model-based limit assessment\u00a0for both existing-to-bank and new-to-bank MSME borrowers.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Along with improving the EoDB for the MSMEs, this model also integrates the credit guarantee schemes, such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). During the period 1<sup>st<\/sup>\u00a0April to 30<sup>th<\/sup>\u00a0November 2025,\u00a0over \u20b93.2 lakh crore MSME loan applications, amounting to\u00a0more than \u20b941.5 thousand crore, have been sanctioned by PSBs under the credit programmes of CAM.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Act, 2025<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Act, 2025 introduces comprehensive reforms by amending the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and Insurance Regulatory and Development Authority Act, 1999. The objective is to\u00a0strengthen policyholder protection, deepen insurance penetration, accelerate sectoral growth, and significantly improve EoDB.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>A key reform is the increase in the FDI limit to 100%, which is expected to attract new players, expand capital availability, and bridge the protection gap for individuals and businesses. The Act promotes EoDB through:<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #3366ff;\"><strong>One-time registration for insurance intermediaries to ensure seamless operations and better service continuity.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Raising the IRDAI approval threshold for share transfers from 1% to 5%, simplifying compliance.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Reducing the Net Owned Fund requirement for foreign reinsurers from \u20b95,000 crore to \u20b91,000 crore, encouraging greater reinsurance participation and capacity in India.<\/strong><\/span><\/li>\n<\/ul>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Trade and Investment Facilitation\u00a0\u00a0<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>To strengthen India\u2019s position as a competitive global trade and investment destination, the Government has provided measures aimed at streamlining cargo clearances, modernising customs processes, and enhancing investor access. These initiatives focus on digital integration, faster approvals, technology-driven risk management, and expanded investment avenues, creating a more efficient, transparent, and investor-friendly trade ecosystem.<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #3366ff;\"><strong>Single and interconnected\u00a0digital window for cargo clearance\u00a0approvals.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>For goods not having any compliance requirement,\u00a0clearance will be done by Customs immediately after online registration is completed\u00a0by the importer, subject to the payment of duty.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Customs Integrated System (CIS) will be rolled out in 2 years\u00a0as a single, integrated and scalable platform for all the customs processes.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Utilization of non-intrusive scanning\u00a0with advanced imaging and AI technology for risk assessment will be expanded in a phased manner with the objective to scan every container across all the major ports.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Individual Persons Resident Outside India (PROIs) will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme (PIS).\u00a0It is also proposed to increase the investment limit for an individual PROI under this scheme from 5% to 10%, with an overall investment individual PROIs to 24%, from the current 10%.<\/strong><\/span><\/li>\n<\/ul>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Regulatory Reforms Enhancing Ease of Doing Business<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Parallel regulatory reforms have prioritised capacity-building, regulatory coherence, and a governance model rooted in trust and accountability to enhance Ease of Doing Business. Recent measures span financial markets, taxation, labour regulation, insolvency resolution, customs administration, quality standards, and compliance rationalisation. By consolidating laws, decriminalising minor offences, digitising processes, and strengthening transparency, these reforms reduce regulatory friction while preserving accountability. These coordinated measures reinforce regulatory certainty, encourage competition, and foster a more efficient and resilient business environment.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>RBI\u2019s Master Directions<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Reserve Bank of India (RBI) has\u00a0simplified and streamlined its regulatory framework\u00a0by\u00a0consolidating over 9,000 circulars and guidelines into 238 function-specific Master Directions\u00a0for different categories of regulated entities. \u00a0In coordination with National Bank for Agriculture and Rural Development (NABARD), instructions issued to Regional Rural Banks and cooperative banks have also been consolidated and simplified to ensure greater transparency.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>With an aim to enhances accessibility and reduces compliance burden, a total of 9,446 circulars are being repealed, 3,809 have been consolidated into Master Circulars, and 5,673 identified as obsolete. This exercise improves clarity and enhances EoDB.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>SEBI\u2019s move to simplify regulations and improve transparency<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>To enhance EoDB and\u00a0deepen capital markets,\u00a0Securities and Exchange Board of India (SEBI) has introduced measures to\u00a0simplify regulatory requirements and strengthen transparency. It has\u00a0aligned the guidelines for issuance and listing of securitised debt instruments (SDIs) with the Reserve Bank of India\u2019s norms on securitisation of standard assets, thereby ensuring\u00a0greater regulatory consistency, smoother compliance, and clearer processes for issuers.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Rationalizing Penalty and Prosecution<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>To reduce compliance stress, the Government has introduced a series of measures aimed at\u00a0rationalising penalties, decriminalising minor defaults, and simplifying assessment and prosecution frameworks\u2014making the tax system more transparent, predictable, and business-friendly.<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #3366ff;\"><strong>Integrated assessment &amp; penalty orders\u00a0with no interest on penalties during appeal; pre-deposit reduced from 20% to 10% (on core tax demand).<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Updated returns allowed\u00a0even after reassessment, with an additional 10% tax.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Immunity from penalty &amp; prosecution\u00a0extended from underreporting to misreporting, on payment of full tax and interest.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Decriminalisation\u00a0of non-production of books and TDS on payments in kind; minor offences to attract fines only.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Technical penalties rationalised\u00a0into fees.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Proportionate prosecution framework\u00a0with simple imprisonment to a maximum of 2 years, convertible to fine.<\/strong><\/span><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #3366ff;\"><strong>Retrospective immunity\u00a0(from 1.10.2024) for non-disclosure of foreign assets below \u20b920 lakh.<\/strong><\/span><\/li>\n<\/ul>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Trust-based systems<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\">\n<div class=\"table-responsive\" style=\"text-align: justify;\">\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td>\n<div>\n<p><span style=\"color: #3366ff;\"><strong>Deferred duty payment\u00a0is a mechanism for delinking duty payment and Customs clearance. It is based on the principle \u2018Clear first-Pay later\u2019. The aim is to have a seamless wharf to warehouse transit in order to facilitate just-in-time manufacturing.<\/strong><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><strong>An\u00a0Authorised Economic Operator (AEO)\u00a0is a business entity involved in international movement of goods requiring compliance with provisions of the national Customs law and is approved by or on behalf of national administration in compliance with World Customs Organization (WCO) or equivalent supply chain security standards.<\/strong><\/span><\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The Government is focused on offering trust-based custom systems to enhance EoDB. In this regard, the Union Budget 2026-27 proposed to\u00a0enhance the duty deferral period\u00a0for Tier 2 and Tier 3 Authorised Economic Operators (AEO), from 15 days to 30 days, to have better wharf to warehouse transit and\u00a0facilitate just-in-time manufacturing.\u00a0The enhancement in the duty deferral period means extending the time allowed to pay customs or import duties after goods are imported, instead of paying them immediately.\u00a0\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Other proposals include-<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #3366ff;\"><strong>Provided\u00a0eligible manufacturer-importers the same duty deferral facility. This should encourage them to get themselves accredited as a full-fledged Tier 3- AEO in due course.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>For greater certainty and better business planning,\u00a0the validity period of advance ruling, binding on Customs, extended from the present 3 years to 5 years.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Provided\u00a0preferential treatment based on AEO\u00a0accreditation in clearing their cargo.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Trusted importers recognised in risk systems, minimising verification, while electronically sealed export cargo cleared factory-to-ship.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>For non-compliance goods, trusted importer filings will automatically notify Customs for clearance, enabling\u00a0immediate release on arrival.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>Customs warehousing framework to shift to operator-centric system\u00a0with self-declarations, electronic tracking and risk-based audits, reducing delays and compliance costs.<\/strong><\/span><\/li>\n<\/ul>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Jan Vishwas Act\u00a0<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>In order to further\u00a0strengthen a trust-based regulatory framework, the Government has undertaken significant decriminalization reforms.\u00a0The Jan Vishwas (Amendment of Provisions) Act, 2023 decriminalized 183 provisions across 42 Acts, thereby reducing criminal liability for minor and technical offences.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Continuing these efforts, the\u00a0Jan Vishwas (Amendment of Provisions) Bill, 2025, which comprises of 355 provisions, proposes amendments to 288 provisions for decriminalisation to promote EoDB and 67 provisions aims at enhancing Ease of Living. It reflects the Government\u2019s commitment to\u00a0\u201cMinimum Government, Maximum Governance\u201d\u00a0and is poised to boost sustainable economic growth and improved ease of doing business.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Insolvency and Bankruptcy Code (IBC), 2016<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The Insolvency and Bankruptcy Code (IBC)\u00a0has significantly\u00a0transformed India\u2019s insolvency framework\u00a0by\u00a0enabling timely resolution of financially distressed companies\u00a0and\u00a0improving recoveries for creditors. By establishing a clear, structured, and time-bound process for corporate revival or liquidation, it has\u00a0enhanced transparency, strengthened creditor confidence, and fostered a more predictable business<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The primary objective of the IBC is rescuing corporate debtors (CDs) in distress.\u00a0Since inception till September 2025, a total of 3,865 CDs have been rescued, 1,300 through resolution plans, 1,342 through appeal, review or settlement, and 1,223 through withdrawal. As of 30 September 2025, creditors have realised \u20b93.99 lakh crore under resolution plans. This is about 170% of the liquidation value and nearly 94% of the fair value (based on 1,177 cases). Overall, creditors have recovered more than 32% of their admitted claims.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>By maximising the value of assets, promoting entrepreneurship, enhancing the availability of credit, and balancing the interests of all stakeholders, the Code has strengthened the\u00a0overall credit ecosystem and improved business confidence\u00a0in the country.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>The Securities Markets Code, 2025 (SMC)<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The SMC Code, 2025 replaces the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992, and the Depositories Act, 1996, thereby\u00a0consolidating the uneven laws governing India\u2019s securities markets. It spans subjects such as board composition, independence, conflict management, transparency, regulatory sandboxing, investor protection, governance of market infrastructure institutions, and EoDB.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Quality Control Orders<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Quality Control Orders (QCOs),\u00a0issued by various Ministries and Departments, play a crucial role in strengthening India\u2019s\u00a0quality ecosystem. Their implementation supports India\u2019s ambition to expand its\u00a0share in global manufacturing by enforcing robust quality standards that enhance consumer safety, curb the circulation of sub-standard products, attract investment, and reduce the risk of accidents and loss of life.\u00a0QCOs also enable early detection of product defects and malfunctions, benefiting both manufacturers and consumers through improved reliability and more rationalised costs.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>To minimise compliance burdens and support EoDB-particularly for MSMEs-extensive consultations\u00a0are held with industry bodies, sectoral associations, and other stakeholders during both the formulation and implementation stages.\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>India has significantly expanded its mandatory quality assurance framework in recent years. As of 31 December 2025, 143 QCOs covering 723 products have been notified\u2014more than tripling the coverage from 214 products in 2019. This calibrated approach strengthens quality standards while balancing regulatory efficiency and business facilitation.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Regulatory Compliance Burden (RCB) Initiative<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Launched in 2020, the RCB initiative seeks to ease regulatory pressures on businesses and citizens through a comprehensive self-review by Central Ministries, Departments, and States\/UTs. Over the past five years, more than 47,000 compliances have been reduced.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong><img decoding=\"async\" id=\"Picture_x0020_8\" src=\"https:\/\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image007SWCR.jpg\" \/><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Additionally, under the expanded RCB+ initiative,\u00a04,846 compliances have already been reduced out of 6,262 identified across 23 State-implemented Acts, further advancing regulatory simplification.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Minimum Alternate Tax (MAT)\u00a0 \u00a0<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Minimum Alternate Tax (MAT)\u00a0enhances the EoDB in India by creating a fair, transparent tax structure that ensures profitable companies pay a minimum tax. Recently, Significant rationalization measures have been proposed under the MAT framework in the Union Budget 2026-27.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Non-residents opting for presumptive taxation\u00a0are proposed to be\u00a0exempted\u00a0from the applicability of MAT, thereby\u00a0reducing compliance burden and enhancing tax certainty.\u00a0Buyback taxation\u00a0is to be\u00a0streamlined by taxing buybacks\u00a0in the hands of all shareholders as capital gains. Further, in the new tax regime,\u00a0set-off of available MAT credit is proposed to be permitted up to one-fourth of the tax liability. Additionally,\u00a0MAT is proposed to be treated as a final tax, with the rate reduced from 15% to 14%, aiming to\u00a0simplify the structure while maintaining revenue stability.<\/strong><\/span><\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>Labour Reforms<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The consolidation of 29 Central labour laws into four Labour Codes has significantly enhanced EoDB by simplifying compliance, reducing approval timelines, and providing greater operational flexibility, particularly for MSMEs.<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #3366ff;\"><strong>The Codes have prescribed a\u00a030-day time limit for granting permission\u00a0for factory construction or expansion and\u00a0reduced the overall approval timeline\u00a0from 90 days to 30 days.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>They simplify contract labour norms by\u00a0exempting contractors employing fewer than 50 workers from licensing, and\u00a0introduced electronic single registration, a single return, and single all-India licences valid for five years\u00a0with deemed approvals.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>The Codes replaced six existing boards with a\u00a0single national tripartite board,\u00a0enabled\u00a0compounding of offences through graded monetary fines,\u00a0replaced criminal penalties with civil penalties, and mandated a 30-day notice period for compliance before legal action.<\/strong><\/span><\/li>\n<li><span style=\"color: #3366ff;\"><strong>They also\u00a0increased thresholds for lay-off, retrenchment, closure, and Standing Orders to 300 workers, providing greater operational flexibility to establishments without prior approvals.<\/strong><\/span><\/li>\n<\/ul>\n<div style=\"text-align: justify;\">\n<p><span style=\"color: #3366ff;\"><strong>GST 2.0<\/strong><\/span><\/p>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>GST reforms introduced in September 2025 strengthen EoDB by\u00a0simplifying tax slabs, reducing rates across key sectors, thus lowering tax incidence and improving price competitiveness.\u00a0The move towards a simplified two-rate structure lowers compliance and transaction costs, while rate rationalisation improves affordability and supports entrepreneurship.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>The impact is reflected in the expansion of the tax base, with\u00a0registered taxpayers increasing from about 60 lakhs in 2017 to over 1.6 crore in January 2026, indicating deeper formalisation. Further,\u00a0correction of inverted duty structures\u00a0in labour-intensive and agri-input sectors such as textiles and fertilisers has reduced costs and working capital pressures, easing business operations.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Conclusion<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>India\u2019s emergence as a global business powerhouse\u00a0is anchored in sustained, structural reforms across taxation, regulation, finance, labour, trade, and investment. From compliance rationalisation and trust-based governance to digital trade systems and startup support, the reform momentum reflects a transparent, predictable, and growth-oriented ecosystem.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Rising enterprise registrations, strong business sentiment, expanding formalization, and improved credit access underscore the confidence of industry and investors alike. As India deepens its integration with global value chains and strengthens its policy framework, it is not merely\u00a0enhancing EoDB- it is shaping a resilient, competitive, and future-ready economic landscape.<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Policy Reforms That Transformed Business Environment Posted On: 05 MAR 2026 11:50AM by PIB Delhi Key Takeaways \u00b7 Business registrations in India grew by ~27% from 1.55 lakh in 2020\u201321 to 1.98 lakh in 2025\u201326 (as on 3 February 2026). \u00b7 The Union Budget 2026\u201327 further enhances India\u2019s ease of doing business ecosystem with various &hellip;<\/p>\n","protected":false},"author":2,"featured_media":21284,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-21283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education-news"],"_links":{"self":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/21283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21283"}],"version-history":[{"count":1,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/21283\/revisions"}],"predecessor-version":[{"id":21285,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/21283\/revisions\/21285"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/media\/21284"}],"wp:attachment":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}