Uttar Pradesh tops Deregulation 1.0 rankings, leads in business reforms

Uttar Pradesh CM Yogi Adityanath (AFP)

• Uttar Pradesh ranked first in India's Deregulation 1.0 business reforms exercise
• State fully implemented 23 priorities, enhancing transparency and investor appeal
• Reforms: digitized land use, labor changes, faster utility connections

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Uttar Pradesh has secured the number one rank in the Deregulation 1.0 exercise, emerging as the top state nationwide for business reforms. The Government of India identified 23 key priority areas across land, building and construction, labour, utilities, permissions, and other sectors to simplify business operations and make them more transparent and investment-friendly.

A senior official from the Chief Minister's Office called it a "proud moment." "This top rank reflects our relentless drive to make Uttar Pradesh the first choice for investors," the official told Moneycontrol.

The central government's state-wise ranking report confirms Uttar Pradesh's top position. The state stands out as the first in the country to fully implement all 23 priority areas comprehensively. This achievement highlights the state government's focus on policy simplification, regulatory rationalization, and improving the ease of doing business for investors and entrepreneurs.

In land-related reforms, Uttar Pradesh introduced a flexible zoning framework for mixed-use development. It simplified and digitized the land-use change process, rationalized minimum road width norms for rural industries, and integrated a GIS-based land bank with the India Industrial Land Bank for better investor access.

“By integrating our land bank with the national platform, we have ensured greater transparency and faster decision-making for investors looking to set up operations in Uttar Pradesh,” Nand Gopal Nandi, Industry Minister said.

The building and construction sector saw amendments to regulations that cut land loss in industrial and commercial plots. The state expanded the role of empanelled third parties for building approvals, joint inspections, fire checks, and online issuance of occupancy and

Labour reforms removed restrictions on women in hazardous industries, allowed night-time work for women in factories, shops, and establishments, and rationalized working hour limits. The state also raised the Shops and Establishments Act compliance threshold to 20 or more workers.

“These labour reforms balance worker welfare with industry needs and are aimed at increasing workforce participation, especially of women,” the Minister said.

Additional measures included third-party certification for environmental consents, simplified online factory and trade licenses, faster electricity and water connections through digital platforms, and reclassifying non-polluting industries as White Category. The Uttar Pradesh Sugamya Vyapar Amendment Act 2025 and integration of all state services with the State Single Window System, linked to the National Single Window System, bolstered these efforts.

“This achievement reflects our commitment to creating a transparent, predictable and investor-friendly business environment,” a senior state government official in Invest UP said. “The focus has been on reducing unnecessary compliances while ensuring accountability through technology-driven systems.”

Mukesh Singh, Chairman, UP Co-ordination Committee of Indo Americal Chamber of Commerce, hailed the reforms as a game-changer. "Uttar Pradesh's top ranking sets a benchmark for the nation. These measures will unlock massive investments and propel industrial growth," he said.

Singh who is also vice-president of Assocham, UP chapter said: "The comprehensive reforms in labour and land sectors will supercharge MSMEs and attract global supply chains to the state."

Business consultant Neha Kapoor noted the broader impact. "Digitization and third-party roles have cut delays by months, making UP truly competitive," she remarked.

These steps cement Uttar Pradesh's position as a progressive, investor-friendly state with a transparent and growth-focused business environment.