Introduction
India has long sought to become a top investment destination globally. A key driver of this ambition has been improving the Ease of Doing Business (EoDB)—a set of reforms aimed at reducing red tape, simplifying compliance, and fostering entrepreneurship.
From the World Bank's now-discontinued Doing Business rankings to India’s own internal state-level EoDB assessments, reforms have been deep and wide. But challenges remain at the last-mile implementation level, where entrepreneurs still encounter legacy hurdles.
🔷 India’s Performance: Global Snapshot
| Year | World Bank EoDB Rank | Notable Improvements |
|---|---|---|
| 2014 | 142 | Baseline |
| 2019 | 63 | Major reforms in insolvency, construction permits, and tax filing |
🔍 Note:
The World Bank suspended the Doing Business Report in 2021 due to data manipulation allegations. However, India had shown one of the fastest improvements among large economies.
🔷 Key Reform Areas (2014–2022)
✅ 1. Starting a Business
-
Online company registration portal: SPICe+
-
Time reduced from 30+ days to under a week in some states
✅ 2. Construction Permits
-
Digital single-window clearance in Delhi and Mumbai
-
Standardized timelines and online tracking
✅ 3. Insolvency Resolution
-
Insolvency and Bankruptcy Code (IBC): Reduced time for resolution, improved investor confidence
✅ 4. Paying Taxes
-
GST rollout
-
Online payment and return filing; faceless assessment by the Income Tax department
✅ 5. Getting Credit
-
Strengthened credit bureaus
-
Improved access to MSME financing through Udyam Registration
🔷 Ground-Level Realities & Challenges
Despite impressive national reforms, execution at state/district levels remains inconsistent.
| Issue | Ground-Level Gap |
|---|---|
| Licensing | Local inspectors still ask for bribes in some districts |
| Electricity connections | Time-consuming in rural or semi-urban areas |
| Land acquisition | Legal disputes and red tape |
| Labour laws | Compliance burdens for small businesses persist despite simplifications |
| Digital access | Portal usability, broadband issues in non-metro areas |
🔷 State-Level EoDB Ranking (DPIIT)
India now conducts an intra-national EoDB index, evaluating states on 300+ parameters (Business Reforms Action Plan - BRAP):
| 2023 Rankings* | Top Performers |
|---|---|
| 1️⃣ | Andhra Pradesh |
| 2️⃣ | Gujarat |
| 3️⃣ | Telangana |
| 4️⃣ | Haryana |
| 5️⃣ | Karnataka |
*Provisional rankings; formal release pending.
🔷 Recent & Emerging Reforms
🔹 Jan Vishwas Bill (2023)
-
Decriminalization of over 180 business-related minor offenses
-
Reduces fear of prosecution for MSMEs
🔹 National Single Window System (NSWS)
-
One-stop portal for investors to apply for clearances across central and state departments
🔹 Logistics Reforms
-
PM Gati Shakti for integrated infrastructure planning
-
Unified Logistics Interface Platform (ULIP) for supply chain transparency
🔹 Labour Code Rationalization
-
29 labour laws into 4 labour codes (wages, social security, OSH, IR) – yet to be fully implemented
🔷 Opportunities Ahead
| Area | Potential Impact |
|---|---|
| Digitization of land records | Removes major FDI and project delays |
| Dispute resolution reforms | Lower backlog in commercial courts |
| GST simplification | Better compliance and MSME participation |
| Reducing inspector raj | Transparency via tech-enabled inspections |
🔷 Conclusion
India’s EoDB reforms have transformed its macro-investment climate, particularly in urban hubs and Tier 1 cities. However, true ease of doing business must extend beyond rankings—into the everyday reality of small businesses, startups, and rural entrepreneurs.
As the country aspires to become a $5 trillion economy and a manufacturing powerhouse, bridging the gap between policy intent and implementation on the ground will be critical.