Ease of Doing Business: Strengthening India’s Business Framework
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Ease of Doing Business: Strengthening India's Business Framework
1. At a Glance
- Ease of Doing Business (EoDB) = composite of regulatory simplification, decriminalisation, digital governance and trust-based administration to reduce cost/time of doing business [S1][S3].
- Driven by DPIIT (Department for Promotion of Industry and Internal Trade) under the Ministry of Commerce & Industry [S3].
- UPSC relevance: GS-III (economy/industry/investment), GS-II (governance, e-gov), and Prelims (BRAP, Jan Vishwas, B-READY) [S1][S2].
2. Why in the News
- Jan Vishwas (Amendment of Provisions) Bill, 2026 passed by both Houses; amends 784 provisions across 79 Central Acts under 23 Ministries, decriminalising 717 provisions [S2].
- BRAP 2026 (8th edition) rolled out on 11 November 2025 by DPIIT [S3].
- World Bank B-READY assessment of India scheduled in 2026, replacing the discontinued Doing Business Report [S1].
3. Background & Evolution
- 2014–15: DPIIT launched the Business Reforms Action Plan (BRAP) to rank States/UTs [S3].
- 2015 onwards: annual BRAP editions; states ranked on reform implementation [S3].
- 2020: World Bank discontinued Doing Business Report; successor B-READY announced [S1].
- 2023: Jan Vishwas (Amendment of Provisions) Act, 2023 — amended 42 Central Acts, decriminalised 183 provisions [S2].
- 2025: District-level D-BRAP launched with Implementation Guidebook [S3].
- 2026: Jan Vishwas Bill 2026 enacted [S2].
4. Core Static Facts
- Nodal body: DPIIT, Ministry of Commerce & Industry [S3].
- Flagship programme: Business Reforms Action Plan (BRAP), launched 2015 [S3].
- Latest edition: BRAP 2026 (8th), rolled out 11 Nov 2025 [S3].
- Key statute: Jan Vishwas (Amendment of Provisions) Act, 2023; Jan Vishwas Bill, 2026 [S2].
- Global benchmark: World Bank B-READY (Business Ready) — India assessment in 2026 [S1].
- Compliance reduction (as of Nov 2025): >47,000 compliances reduced — 16,108 simplified, 22,287 digitised, 4,458 decriminalised, 4,270 redundant removed [S3].
5. Multi-Dimensional Analysis
Economic - FDI inflows USD 748.38 billion during 2014–25, a 143% increase over previous 11-yr period [S3]. - Active registered companies rose from 1.55 lakh (2020–21) to 1.98 lakh (2025–26) — ~27% growth in 5 yrs [S3].
Legal / Constitutional - Jan Vishwas Acts replace imprisonment for minor procedural offences with graded monetary penalties, retaining strict action only for serious public-health/safety violations [S2]. - 2026 Bill rationalises >1,000 offences across 79 Central Acts [S2].
Administrative / Federalism - BRAP rankings drive cooperative-competitive federalism across States/UTs [S3]. - D-BRAP extends reform competition to district level [S3].
Scientific / Technological - Digital Public Infrastructure (DPI) underpins single-window clearances, paperless incorporation, digital land records, e-procurement [S1][S3]. - Union Budget 2026–27 emphasises digital trade facilitation, trust-based customs, tax certainty [S3].
6. Recent Developments (last 12-18 months)
- 12 Aug 2025: Union Cabinet approved Jan Vishwas Bill 2025 (precursor) [S3].
- 11 Nov 2025: BRAP 2026 rolled out by DPIIT [S3].
- 2026: Jan Vishwas (Amendment of Provisions) Bill, 2026 passed by Lok Sabha & Rajya Sabha [S2].
- 2026: World Bank B-READY India assessment scheduled [S1].
- Budget 2026–27: focus on compliance/litigation reduction, investment-friendly tax regime [S3].
7. Prelims Hooks
- BRAP launched in 2015 by DPIIT [S3].
- BRAP 2026 = 8th edition, rolled out 11 November 2025 [S3].
- Jan Vishwas Act 2023 amended 42 Central Acts, decriminalised 183 provisions [S2].
- Jan Vishwas Bill 2026 amends 784 provisions, 79 Acts, 23 Ministries; decriminalises 717 [S2].
- World Bank's B-READY replaces the Doing Business Report [S1].
- D-BRAP = District Business Reform Action Plan [S3].
- DPIIT is under Ministry of Commerce & Industry (not MCA) [S3].
- Over 47,000 compliances reduced as of Nov 2025 [S3].
- FDI 2014–25: USD 748.38 bn (143% rise) [S3].
- Active companies: 1.98 lakh as on 3 Feb 2026 [S3].
- Jan Vishwas Bill 2026 introduced in Lok Sabha by MoS Commerce, Jitin Prasada [S2].
8. Mains Relevance
- GS-III: Indian economy, mobilisation of resources, growth, investment models.
- GS-II: Governance, e-governance, statutory bodies, cooperative federalism.
- Plausible stems:
- "Discuss how decriminalisation of economic offences via the Jan Vishwas framework has reshaped India's regulatory environment."
- "Examine the role of BRAP and D-BRAP in promoting competitive federalism in Ease of Doing Business."
- "Critically assess the readiness of India for the World Bank B-READY assessment."
9. Related Topics to Study Next
- Make in India / PLI schemes — complementary industrial push.
- Insolvency and Bankruptcy Code, 2016 — exit framework for businesses.
- GST & Faceless Assessment — tax simplification.
- National Single Window System (NSWS) — clearances portal.
- Startup India / Stand-up India — entry-level reforms.
- Logistics: PM GatiShakti & National Logistics Policy — market connectivity.
- Labour Codes (2019–20) — compliance rationalisation.
- Digital Public Infrastructure (DPI) — enabler of paperless governance.
10. Common Errors / Trap Areas
- Confusing DPIIT (Commerce Ministry) with MCA (Corporate Affairs) — BRAP is under DPIIT.
- Mixing Jan Vishwas 2023 (42 Acts/183 provisions) with 2026 (79 Acts/717 decriminalised) [S2].
- Assuming Doing Business Report is still active — it was discontinued; B-READY is the successor [S1].
- BRAP ranks States/UTs, not cities; D-BRAP is the district extension [S3].
- Jan Vishwas does not decriminalise serious public-safety offences — only minor/procedural ones [S2].
11. Sources
- [S1] India's EoDB Performance; B-READY 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2225808 — (tier 1)
- [S2] Jan Vishwas (Amendment of Provisions) Bill, 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2248831 — (tier 1); PRS Bill Track — https://prsindia.org/billtrack/the-jan-vishwas-amendment-of-provisions-bill-2026 — (tier 1)
- [S3] Government Advances EoDB Reforms via BRAP / Digital Blueprint — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2204665 — (tier 1); https://www.pib.gov.in/PressReleasePage.aspx?PRID=2236804 — (tier 1)