BUSINESS ENVIRONMENT
India has undertaken several reforms to make the business environment more transparent, efficient and enterprise-friendly. Discuss the major initiatives and their significance in improving Ease of Doing Business and India’s global competitiveness.
Model Answer
India’s business environment has increasingly shifted towards simplified compliance, digital governance, easier finance and wider market access.
Major reforms:
- Ease of compliance: National Single Window System, SPICe+, MCA21 V3 and Udyam Registration have reduced procedural and registration burdens.
- Access to finance: PM MUDRA, CGTMSE, Credit Assessment Model and TReDS improve credit access, particularly for MSMEs.
- Trust-based governance: Jan Vishwas Act, 2026, decriminalisation of minor offences and faceless tax assessment reduce regulatory friction.
- Market access: GeM, ONDC and PM GatiShakti expand procurement opportunities and improve logistics/connectivity.
- Global integration: Export Promotion Mission, Trade Connect and ICEGATE facilitate exports and cross-border trade.
Significance:
- Encourages entrepreneurship and formalisation.
- Reduces compliance costs and regulatory uncertainty.
- Improves MSME competitiveness and access to credit.
- Strengthens digital public infrastructure and transparency.
- Enhances India’s attractiveness as a global investment and manufacturing destination.
Way forward: Reforms should focus on stable regulations, faster clearances, coordinated Centre-State implementation and deeper access to finance to translate ease of doing business into sustained investment and employment.