Ease of Doing Business: Strengthening India's Business Framework
India has been undertaking sustained reforms to strengthen its Ease of Doing Business (EoDB) framework, aiming to reduce regulatory burden, streamline compliance, and attract domestic and foreign inve
What happened
India has been undertaking sustained reforms to strengthen its Ease of Doing Business (EoDB) framework, aiming to reduce regulatory burden, streamline compliance, and attract domestic and foreign investment. Over the past decade, India climbed from rank 142 to 63 in the World Bank's Doing Business Index before the index was discontinued in 2021, reflecting the impact of structural reforms across areas such as starting a business, paying taxes, enforcing contracts, and resolving insolvency. Key initiatives include the Jan Vishwas Act 2023 (decriminalising minor business offences), the National Single Window System (NSWS), and the DPIIT-led Business Reforms Action Plan (BRAP) for states. These reforms are critical for India's ambition to become a $5 trillion economy and a preferred global manufacturing hub under schemes like PLI and Make in India. For UPSC, this topic intersects governance, economic policy, federalism, and India's global competitiveness narrative.
India's EoDB reforms are a recurring theme in UPSC Prelims, often tested through specific schemes, indices, and institutional mechanisms.
●The National Single Window System (NSWS) is a unified portal for approvals and clearances.
●The Business Reforms Action Plan (BRAP) is DPIIT's annual ranking of states on business reforms.
●The Jan Vishwas (Amendment of Provisions) Act, 2023 decriminalised 183 provisions across 42 central laws, converting criminal penalties into civil ones for minor offences.
●The Insolvency and Bankruptcy Code (IBC), 2016 is a landmark reform improving India's 'Resolving Insolvency' indicator.
●GIFT City and PM GatiShakti are infrastructure-linked EoDB enablers.
●India's rank improved from 142nd (2014) to 63rd (2019) in the World Bank Doing Business Index before it was discontinued.
The Jan Vishwas Act 2023, NSWS, BRAP, and IBC 2016 are the four most UPSC-relevant institutional pillars of India's EoDB reform architecture.
◎ In Simple Words
Imagine you want to open a lemonade stall but you need 50 different permissions from 20 different offices — that would be very frustrating! India has been working hard to cut down all these complicated rules so that starting and running a business becomes much easier, like getting a single ticket instead of standing in many queues. The government has created online portals, removed unnecessary laws, and encouraged states to compete with each other in making business-friendly rules. This helps more people start businesses, creates jobs, and brings money into India from other countries.
Factual Pointers
Practice · 1 question
With reference to the Jan Vishwas (Amendment of Provisions) Act, 2023, which of the following statements is/are correct?
1. It decriminalised provisions in 42 central Acts by converting imprisonment clauses into monetary penalties.
2. It was enacted primarily to improve India's ranking in the World Bank's Doing Business Index.
3. The Act empowers an Adjudicating Officer to impose penalties in place of courts for specified offences.
Select the correct answer using the code below: