Legislative Progression of Ease of Doing Business Reforms (2025-2026): UPSC Current Affairs Story Arc

Overview

This arc tracks India's transition from the 'License-Permit-Quota Raj' to a 'Trust-Based Governance' model between 2025 and 2026. Facing a staggering 9,420 compliance updates annually and a maze of 23 different business IDs, the government launched Jan Vishwas 2.0. This legislative progression focuses on decriminalizing minor procedural lapses, moving away from the threat of imprisonment for technical errors like failing to deposit TCS. By integrating tools like Centralized KYC and the National Single Window System, which processed over 11,000 approvals in a single month, the reform aims to prepare India for the World Bank's new 'B-Ready' assessment in 2026. The shift represents a move from simply 'starting' a business to ensuring the 'business is ready' to scale globally.

How This Story Evolved

High compliance burden identified (Item 6) → Budget 2025-26 announces Jan Vishwas 2.0 (Item 2) → Bill introduced and provisions decriminalized (Item 5) → Budget 2026-27 reports cumulative compliance reductions and future roadmap (Seed).

1. 2025-03-12: India Tackling Corruption and Red Tape to Boost Business
   More details

   UPSC Angle: India tackling corruption and red tape to boost business.

   Key Facts:

   • Businesses are required to manage 23 different identity numbers, including PAN, GSTIN, and CIN.
   • India ranks 6th globally in terms of patent applications, with 64,480 patent filings in 2023.
2. 2025-04-17: CII Highlights Need to Enhance Ease of Doing Business in India
   More details

   UPSC Angle: CII highlights need to enhance ease of doing business in India.

   Key Facts:

   • India's World Bank Doing Business ranking: Improved from 142nd in 2015 to 63rd in 2020
   • India's IMD World Competitiveness Index 2024 position: 39th
   • India's World Bank Logistics Performance Index 2023 position: 38th
   • Government initiatives: National Single Window System, decriminalization of minor offences, Regulatory Compliance Portal, streamlining of labour and tax laws
   • Union Budget 2025-26: Announced Jan Vishwas Bill 2.0
   • CII's EoDB reforms suggestion: 10-point agenda
3. 2025-11-20: India's Ease of Doing Business Reforms in 2025
   More details

   UPSC Angle: India plans Centralized KYC India and Regulatory Impact Assessment framework.

   Key Facts:

   • As of November 2025, more than 47000 compliances have been reduced.
   • The Jan Vishwas Act 2023 (Amendment of Provisions) decriminalized 183 provisions across 42 acts.
   • The Jan Vishwas Bill 2025 (Amendment of Provisions), covering 355 provisions, of which 288 are proposed for decriminalization to promote EoDB and 67 for amendment to enhance Ease of Living, was introduced in the Lok Sabha on 18 August 2025.
   • As of 20 November 2025, the National Single Window System (NSWS approvals 2025) has granted 11568 approvals out of 26504 applications received this month.
4. 2026-02-03: India's Ease of Doing Business Reforms and World Bank Assessment
   More details

   UPSC Angle: India's Ease of Doing Business reforms and World Bank B-Ready Assessment.

   Key Facts:

   • Union Budget 2026-27 reinforces EoDB as a pillar of growth
   • World Bank launched B-Ready Assessment in 2024
   • India will be part of the Third B-Ready Report, scheduled for release in 2026
   • During 2014–25, India attracted USD 748.38 billion in Foreign Direct Investment (FDI)
   • Number of active registered companies increased from 1.55 lakh in 2020–21 to 1.98 lakh in 2025–26
   • 16,109 compliances were simplified
   • 22,287 compliances were digitized
   • 4,623 compliances were decriminalized
   • 4,270 compliances were eliminated

Genesis

Trigger

The announcement of Jan Vishwas Bill 2.0 in the Union Budget 2025-26 (April 17, 2025) to tackle the 'Regulatory Cholesterol' identified by industry bodies like CII.

Why Now

The reform was necessitated by findings from the India Business Corruption Survey 2024, showing high bribery (66%) and an unsustainable average of 36 daily regulatory changes that hampered ease of doing business.

Historical Context

It builds on the Jan Vishwas Act 2023, which decriminalized 183 provisions across 42 acts, and the earlier jump in World Bank EoDB ranking from 142nd (2015) to 63rd (2020).

Key Turning Points

1. [2025-08-18] Introduction of the Jan Vishwas Bill 2025 in Lok Sabha

   It institutionalized the second wave of decriminalization, covering 355 provisions across various laws.

   Before: 183 provisions decriminalized (2023). After: Total decriminalized provisions nearly tripled with the addition of 288 more.

2. [2026-02-01] Budget 2026-27 Presentation

   Consolidated EoDB as a permanent 'pillar of growth' and reported the rise of active companies to 1.98 lakh.

   Before: EoDB as a series of ad-hoc reforms. After: Integrated as a structural pillar of national economic strategy.

Key Actors and Institutions

Key Institutions

• National Single Window System (NSWS)
• Confederation of Indian Industries (CII)
• World Bank Group
• Lok Sabha (Lower House of Parliament)

Key Concepts

Decriminalization of Minor Offences

Replacing criminal penalties (imprisonment) with civil penalties (fines) for procedural or technical lapses that do not involve intent to defraud.

Current Fact: Jan Vishwas Bill 2025 proposed decriminalizing 288 provisions to promote EoDB.

B-Ready Assessment

The World Bank's new framework replacing 'Ease of Doing Business', focusing on the regulatory framework, public services, and operational efficiency.

Current Fact: India is scheduled to be part of the Third B-Ready Report in 2026.

National Single Window System (NSWS)

A digital platform serving as a one-stop-shop for investors to identify and apply for all required central and state approvals.

Current Fact: Granted 11,568 approvals out of 26,504 applications in November 2025 alone.

Regulatory Impact Assessment (RIA)

A systemic process of critically assessing the positive and negative effects of proposed and existing regulations.

Current Fact: India is advancing plans to introduce a structured RIA framework as of late 2025.

What Happens Next

Current Status

As of February 2026, the Union Budget 2026-27 has established Ease of Doing Business (EoDB) as a core pillar of growth, following the reduction of over 47,000 compliances.

Likely Next

Release of the World Bank's Third B-Ready Report in 2026, where India's reforms in 'Business Entry,' 'Business Operations,' and 'Business Insolvency' will be globally benchmarked.

Wildcards

Global economic slowdown affecting FDI inflows (which totaled $748.38B during 2014-25) or potential judicial challenges to the decriminalization of specific tax-related offenses.

Why UPSC Cares

Syllabus Topics

• Government policies and interventions for development in various sectors
• Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

Essay Angles

• From License Raj to Trust-Based Governance: The Indian Journey
• Regulatory Cholesterol: The Invisible Barrier to $5 Trillion Economy
• The Ethics of Decriminalizing Economic Offences

Prelims Likely: Yes

Mains Likely: Yes

Trend Signal: rising

Exam Intelligence

Previous Year Question Connections

• Identified the World Bank as the publisher of the Ease of Doing Business Index. — The arc transitions this knowledge to the new 'B-Ready' assessment replacing the old index.
• Policy initiatives to promote manufacturing (Single Window Clearance). — Provides updated stats on NSWS performance (11k+ approvals/month) for contemporary answers.

Prelims Angles

• Specific number of provisions in Jan Vishwas 2025 (355 total, 288 for decriminalization).
• The change in India's IMD World Competitiveness Index (39th in 2024).
• Cumulative FDI total ($748.38 billion during 2014–25).
• Total number of active registered companies in 2025-26 (1.98 lakh).

Mains Preparation

Sample Question: Critically analyze the legislative progression from the Jan Vishwas Act 2023 to the Jan Vishwas Bill 2025. To what extent does the shift towards 'Trust-Based Governance' address the systemic issue of 'regulatory cholesterol' in India?

Answer Structure: Intro: Define Trust-Based Governance and mention Jan Vishwas 2.0 context. → Body 1: The burden (36 daily updates, 23 IDs) and the solution (47k compliance reductions). → Body 2: Impact of decriminalization on investor confidence and FDI ($748.38B). → Critical Analysis: Challenges like 66% bribery and implementation gaps in the NSWS. → Conclusion: Future outlook with World Bank B-Ready 2026.

Essay Topic: Ease of Doing Business is not just about laws; it is about changing the mindset of the State.

Textbook Connections

Key Takeaway

India is systematically replacing its 'criminalize-first' regulatory approach with a 'trust-and-verify' model, shifting focus from mere compliance to global competitiveness ahead of the 2026 World Bank B-Ready assessment.

All Events in This Story (4 items)

1. 2025-03-12 [Economy] — India Tackling Corruption and Red Tape to Boost Business
   India's business environment faces challenges from corruption, compliance updates, and regulatory inefficiencies, despite reforms like the Jan Vishwas Act (2023). The India Business Corruption Survey 2024 reveals that 66% of businesses admitted to paying bribes. In 2024, India experienced 9,420 compliance updates, averaging 36 daily changes.
   More details

   UPSC Angle: India tackling corruption and red tape to boost business.

   Key Facts:

   • Businesses are required to manage 23 different identity numbers, including PAN, GSTIN, and CIN.
   • India ranks 6th globally in terms of patent applications, with 64,480 patent filings in 2023.
2. 2025-04-17 [Economy] — CII Highlights Need to Enhance Ease of Doing Business in India
   The Confederation of Indian Industries (CII) released its Ease of Doing Business Watch, emphasizing the need to expand reforms to address specific challenges and enhance India's attractiveness as a business destination. The report highlights the importance of reducing regulatory burdens, simplifying procedures, and increasing transparency. The Union Budget 2025-26 announced the Jan Vishwas Bill 2.0 to decriminalise various laws and removal of prosecution for taxpayers who failed to deposit Tax Collected at Source (TCS).
   More details

   UPSC Angle: CII highlights need to enhance ease of doing business in India.

   Key Facts:

   • India's World Bank Doing Business ranking: Improved from 142nd in 2015 to 63rd in 2020
   • India's IMD World Competitiveness Index 2024 position: 39th
   • India's World Bank Logistics Performance Index 2023 position: 38th
   • Government initiatives: National Single Window System, decriminalization of minor offences, Regulatory Compliance Portal, streamlining of labour and tax laws
   • Union Budget 2025-26: Announced Jan Vishwas Bill 2.0
   • CII's EoDB reforms suggestion: 10-point agenda
3. 2025-11-20 [Economy] — India's Ease of Doing Business Reforms in 2025
   India is advancing plans to introduce Centralized KYC India and a structured Regulatory Impact Assessment framework to boost foreign investment and domestic manufacturing. As of November 20, 2025, the National Single Window System has granted 11568 approvals out of 26504 applications received this month.
   More details

   UPSC Angle: India plans Centralized KYC India and Regulatory Impact Assessment framework.

   Key Facts:

   • As of November 2025, more than 47000 compliances have been reduced.
   • The Jan Vishwas Act 2023 (Amendment of Provisions) decriminalized 183 provisions across 42 acts.
   • The Jan Vishwas Bill 2025 (Amendment of Provisions), covering 355 provisions, of which 288 are proposed for decriminalization to promote EoDB and 67 for amendment to enhance Ease of Living, was introduced in the Lok Sabha on 18 August 2025.
   • As of 20 November 2025, the National Single Window System (NSWS approvals 2025) has granted 11568 approvals out of 26504 applications received this month.
4. 2026-02-03 [Economy] — India's Ease of Doing Business Reforms and World Bank Assessment
   India has been undertaking Ease of Doing Business (EoDB) reforms, with the Union Budget 2026-27 reinforcing it as a pillar of growth. The World Bank will launch the B-Ready Assessment in 2024, with India to be part of the Third B-Ready Report, scheduled for release in 2026.
   More details

   UPSC Angle: India's Ease of Doing Business reforms and World Bank B-Ready Assessment.

   Key Facts:

   • Union Budget 2026-27 reinforces EoDB as a pillar of growth
   • World Bank launched B-Ready Assessment in 2024
   • India will be part of the Third B-Ready Report, scheduled for release in 2026
   • During 2014–25, India attracted USD 748.38 billion in Foreign Direct Investment (FDI)
   • Number of active registered companies increased from 1.55 lakh in 2020–21 to 1.98 lakh in 2025–26
   • 16,109 compliances were simplified
   • 22,287 compliances were digitized
   • 4,623 compliances were decriminalized
   • 4,270 compliances were eliminated