Budget 2026: Ease of doing business & regulatory reforms crucial for growth

FM Nirmala Sitharaman

Amid a choppy global economic environment, there are heightened expectations that finance minister Nirmala Sitharaman will announce a string of measures to make India a significantly easier place to do business in.

This involves streamlining the complex business permit process, implementing efficient online dispute resolution mechanisms, and passing of the Jan Vishwas 2025 Bill to decriminalize minor offenses, thereby reducing compliance burdens.

Streamline business permit process

The current process is often characterized by a labyrinth of bureaucratic procedures, requiring entrepreneurs to navigate multiple government departments and obtain numerous approvals. This complexity often leads to significant delays, increased compliance costs, and a discouraging environment for new ventures.

The discrepancy between India's processing time and the regional average underscores the urgent need for comprehensive reform to remain competitive and unlock the full potential of its entrepreneurial spirit.

To achieve the target of 10 days or less for central government approvals, a multi-pronged approach is essential. This includes establishing a true single-window clearance system, digitizing all application and approval processes, and implementing a "presumptive approval" mechanism where permits are automatically granted if no decision is made within a specified timeframe.

Standardisation of requirements across various ministries and states, coupled with transparent online tracking systems, will significantly reduce ambiguity and processing times. Integrating central and state permit systems would also create a seamless experience for entrepreneurs.

Implement online dispute resolution

Implementing Online Dispute Resolution (ODR) through a national platform is crucial to alleviate India's massive judicial backlog, making justice accessible, affordable, and efficient for all.

The sheer volume of pending cases, coupled with limited judicial capacity and infrastructure, creates substantial delays and costs for litigants, often deterring individuals and businesses from seeking legal recourse.

It may be a prudent move to introduce an umbrella online dispute resolution (ODR) legislation which includes a national ODR platform. Such a comprehensive legal framework would provide a clear mandate for the digital resolution of a wide array of disputes, from commercial disagreements to consumer complaints and even certain family matters.

A national ODR platform can be a centralized, secure, and user-friendly digital ecosystem. It would facilitate various alternative dispute resolution mechanisms such as negotiation, mediation, and arbitration through virtual means.

Time for Jan Vishwas 2.0

India's ambitious economic growth trajectory is intrinsically linked to creating a conducive and predictable regulatory environment for businesses. A key aspect of this involves reducing the compliance burden and fostering an atmosphere of trust rather than penalization. The ongoing efforts to rationalize and decriminalize minor offenses are crucial steps towards enhancing the ease of doing business and unleashing entrepreneurial potential across the nation.

In August 2025, the government introduced the Jan Vishwas (Amendment of Provisions) Bill, 2025, which seeks to amend 16 Central Acts in order to decriminalise and rationalise certain offences and penalties.

To further enhance the ease of doing business and reinforce investor confidence, the government should push for a comprehensive passage of the Jan Vishwas Bill 2.0 in the next session. This expanded legislation would aim to systematically review and rationalize over 26,000 imprisonment clauses that continue to exist across various statutes.

The focus should be on converting these criminal penalties into monetary fines or administrative sanctions, particularly for offenses that are non-heinous and do not involve fraud or public safety risks.

The swift passage and implementation of Jan Vishwas Bill 2.0 are essential to solidify India's position as a leading global business destination, driving sustained economic growth through a modern, responsive, and trust-oriented regulatory framework.