Ease Of Doing Business

IAS Current Affairs

4 hours ago

Source: PIB
GS III: Changes in Industrial Policy, Investment Models, Infrastructure

Overview

Why in the News?

Press Information Bureau has highlighted the major reforms undertaken over the past years to strengthen the Ease Of Doing Business.

India has undertaken wide-ranging reforms that transformed India’s business environment.
Through digital governance, regulatory simplification, and trust-based administration.
These reforms have strengthened investor confidence, promoted entrepreneurship, and enhanced India’s position as a globally competitive business destination.

Global Assessments

India’s rank in World Bank’s Doing Business Report improved from 142 (2014) to 63 (2019).
India’s ranking in the IMD World Competitiveness Ranking improved from 43 (2021) to 41 (2025).
India has consistently been placed in the top category of the World Bank’s GovTech Maturity Index.
In the US E-Government Survey, India has secured overall high score the in the survey, recognizing its strong digital governance capabilities.

Advancing Business Entry

Startup India
- - - - Over 2.23 lakh recognized startups by March 2026.
        Photo by Carlos Muza on Unsplash
      - Generated more than 23.3 lakh direct jobs.
SPICe+ and MCA21
- - - - Integrated online company incorporation platform.
      - Streamlined the process of starting and formalizing businesses.
Udyam Registration Portal
- - - - Offers free, paperless, self-declaration based system for MSMEs registration.
      - Fully integrated with GST and income tax databases that eliminates administrative hurdles.

Simplifying Property Registration

Digital India Land Records Modernization Programme (DILRMP)
- - - - Digitization of over 97% of cadastral maps.
      - eliminates duplicity, prevents benami transactions, facilitates unified land ecosystems, enhances transparency and reduces land disputes.
National Generic Document Registration System (NGDRS)
- - - - Enables online property registration and valuation services.
      - Supports seamless automatic mutation of land records immediately after registration.

Streamlining Permit Procedures

Introduction of Labour Code in 2025
- - - - Single registration and licensing system.
      - Online approvals and deemed permissions.
      - Inspector-cum-Facilitator system randomized web-based inspection system, replacing traditional inspection mechanisms.
National Single Window System (NSWS)
- - - - Integrates approvals from Central Departments and State Governments.
      - Provides a unified digital platform for investors.
PARIVESH 2.0
- - - - Digital platform that streamlines Environmental Clearances (EC), Forest Clearance (FC), Wildlife (WL) and Coastal Regulation Zone (CRZ) clearances.

Enhancing Market Connectivity

GeM (Government e-Marketplace)
- - - - Digitize and make public procurement more streamlined and inclusive.
ONDC (Open Network for Digital Commerce)
- - - - Promotes open and inclusive digital commerce.
      - Reduces dependency on monopolistic platforms.
PM Gatishakti National Master Plan
- - - - Integrates infrastructure planning of transport and logistics infrastructure.
      - Reduces delay and enhances ease of doing businesses.

Facilitating Easier Credit Access

Major initiatives
- - - - Credit Guarantee Scheme for MSMEs.
      - Pradhan Mantri Mudra Yojana (PMMY)
      - Credit Assessment Model using digital footprints.
      - Trade Receivables Discounting System (TReDS)

Ease of Tax Compliance

Goods and Services Tax (GST)
- - - - Replaced multiple indirect taxes with a unified tax system.
      - Reduced compliance and transaction costs.
      - Enhanced affordability and fostered entrepreneurship.
      - Registered tax payers increased from around 60 lakh to over 1.64 crore – indicates deeper formalization.
Faceless Assessment
- - - - Eliminated physical interface between tax payers and tax officials.
      - Enhances transparency and efficiency.
Income Tax e-Filing Portal
- - - - Enables immediate processing of ITRs for quicker refunds.
      - Provides multiple digital payment options.
E-Way Bill
- - - - Revolutionized logistics by replacing multiple state-level permits with a single, electronic document for movement of goods.
      - Reduced transport time and improved tax compliance.

Enhancing Cross-border trade

Digital Public Infrastructure

Key platforms include
- - - - Unified Payment Interface (UPI)
      - Central KYC Registry (cKYC)
      - EntityLocker

Trust-based Governance Framework

Jan Vishwas Act
- - - - Decriminalization of minor business-related offences.
      - Rationalization of regulatory provisions, improving business environment.
Compliance reduction
- - - - Improved regulatory clarity strengthened ease of compliance for businesses.
Insolvency and Bankruptcy Code (IBC)
- - - - Insolvency and Bankruptcy Code (Amendment) Act, 2026 – strengthened procedural efficiency and creditor participation.

Which of the following reforms are aimed at improving Ease of Doing Business?

Select the correct answer using the code below:

a) 1 and 2 only

b)1,2 and 3 only

c)2,3 and 4 only

d)1,2,3 and 4

Answer: d) 1,2, 3 and 4

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