Key Details
Ease of Doing Business reforms have focused on five structural shifts: simplifying business entry, digitising approvals, modernising land records, expanding MSME access to finance, and replacing punitive compliance systems with trust-based regulation.
Reform Pillar | Key Outcome |
|---|---|
Business Entry | Startup India expanded to 2.23 lakh startups and SPICe+ integrated multiple approvals into one filing system |
Compliance Reform | 717 offences decriminalised under Jan Vishwas and over 47,000 compliances reduced |
Land & Approvals | 36 crore ULPIN-tagged land parcels and 8.29 lakh approvals through NSWS |
Digital Governance | 3.33 crore MCA21 filings approved automatically through STP |
Market Access & Finance | ₹18.4 lakh crore GeM procurement and ₹52,300 crore MSME lending through digital credit assessment |
Summary
From Compliance Burden to Facilitation-Oriented Governance
The Government of India has released a comprehensive review of its Ease of Doing Business (EoDB) reforms, documenting a broad transition from compliance-intensive regulation toward a facilitation-driven administrative framework. The review highlights how digital public infrastructure, simplified approvals, and regulatory rationalisation are increasingly being used to reduce transaction costs for businesses and improve the investment environment.
The transformation is reflected in international assessments. India improved its position in the World Bank Doing Business rankings from 142nd in 2014 to 63rd in 2019, while also advancing to 41st position in the IMD World Competitiveness Ranking 2025. The country’s continued placement in the highest category of the World Bank GovTech Maturity Index and the UN E-Government Survey further reflects the growing role of digital governance.
Startup Growth and Digital Business Entry Systems
A major pillar of reform has been the simplification of business entry and formalisation processes.
Under Startup India, recognised startups expanded from 502 in 2016 to more than 2.23 lakh by March 2026, generating 23.3 lakh jobs, with nearly 48 percent having at least one woman founder or director.
Simultaneously, the SPICe+ platform consolidated multiple incorporation requirements—including DIN allocation, PAN/TAN issuance, EPFO registration, ESIC registration, and bank account opening—into a single digital filing process.
The MCA21 Version 3 platform processed 3.84 crore corporate filings between 2021 and 2025, with 3.33 crore approvals completed automatically through Straight Through Processing (STP), significantly reducing approval timelines.
Land, Environmental and Industrial Approval Reforms
The review also highlights substantial progress in reducing administrative friction associated with land and project approvals.
Under the Digital India Land Records Modernisation Programme (DILRMP), cadastral maps have been digitised across 97.37 percent of the country. More than 36 crore land parcels have been assigned a Unique Land Parcel Identification Number (ULPIN), creating a standardised digital property identification system.
Industrial approvals have similarly been streamlined. The National Single Window System (NSWS) now integrates approvals across 32 Central Ministries and Departments and 34 States and Union Territories, facilitating more than 8.29 lakh approvals.
Environmental clearances have also been accelerated through PARIVESH 2.0, while reforms to Consent to Operate (CTO) guidelines have reduced recurring compliance requirements by making approvals valid until cancelled rather than requiring periodic renewal.
Credit Access, Procurement and Trust-Based Regulation
The final pillar of reform focuses on market access, finance, and regulatory simplification.
The Government e-Marketplace (GeM) recorded cumulative procurement worth ₹18.4 lakh crore, with 68 percentof transactions involving MSMEs and over 2.04 lakh women-led enterprises participating in government procurement.
Credit delivery has increasingly shifted toward data-driven models. Under the Credit Assessment Model (CAM)introduced in 2025, public sector banks approved over 3.96 lakh MSME loans worth ₹52,300 crore using verified digital records rather than conventional collateral-heavy assessment systems.
Perhaps the most significant regulatory reform has been the implementation of the Jan Vishwas (Amendment of Provisions) Act, which decriminalised 717 minor and technical offences and amended 784 provisions across 79 Central Acts. This builds on the government’s broader effort to reduce more than 47,000 compliances and simplify regulatory interactions for businesses.
What is a Straight Through Process (STP)?
A Straight Through Process (STP) is an automated approval mechanism in which applications are electronically verified and processed without manual intervention. By integrating multiple government databases, STP systems can instantly validate information and approve routine filings, reducing delays, administrative costs, and opportunities for discretionary decision-making.
Policy Relevance
Shifts Regulation from Enforcement to Facilitation: The decriminalisation of 717 minor offences under the Jan Vishwas framework, alongside the reduction of over 47,000 compliance requirements, signals a transition away from punitive regulation toward trust-based governance for businesses.
Creates a Unified Digital Business Lifecycle: Platforms such as SPICe+, MCA21, NSWS, GSTN, and Udyam increasingly connect incorporation, compliance, taxation, approvals, and credit access into a single digital ecosystem, reducing transaction costs across the business lifecycle.
Strengthens Formalisation of Small Enterprises: The expansion of Startup India, Udyam registration, digital credit assessment, and GeM participation lowers barriers for MSMEs and startups to enter formal markets, access finance, and participate in public procurement.
Improves Investment Readiness through Data Infrastructure: The rollout of ULPIN, digitised land records, PARIVESH 2.0, and PM GatiShakti improves the predictability of land acquisition, infrastructure planning, and project approvals—critical factors for private investment decisions.
Expands Inclusive Participation in Economic Growth: The data highlights growing participation by women-led enterprises, startups outside traditional innovation hubs, and smaller firms accessing government procurement and collateral-free credit, broadening the base of economic opportunity.
Relevant Question for Policy Stakeholders: As India moves from procedural simplification toward integrated digital governance, what additional reforms are needed to ensure that MSMEs and first-generation entrepreneurs can access the full benefits of platforms such as NSWS, Udyam, MCA21, GeM, and digital credit systems without facing capacity or information barriers?
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