The Union Budget 2026-27 places Ease of Doing Business (EoDB) at the centre of India's growth strategy by focusing on digitisation, tax certainty, trust-based governance, trade facilitation, compliance reduction, and investor-friendly reforms. The objective is to create a more predictable, transparent, and efficient business environment that supports domestic entrepreneurship, attracts foreign investment, and strengthens India's integration into global value chains.The reforms build upon a decade-long transformation in regulatory governance aimed at reducing procedural bottlenecks, simplifying approvals, and improving the overall business ecosystem. These initiatives are aligned with the vision of Viksit Bharat @2047, which seeks to position India as a globally competitive and developed economy.
India's sustained regulatory reforms have translated into significant economic outcomes. Between 2014 and 2025, the country attracted USD 748.38 billion in Foreign Direct Investment (FDI), representing a 143% increase over the previous eleven-year period.Simultaneously, the number of active registered companies increased from 1.55 lakh in 2020-21 to 1.98 lakh in 2025-26, reflecting rising entrepreneurial activity and growing confidence in India's business environment. These trends demonstrate the positive impact of policy reforms on investment, formalisation, and enterprise growth.
A major focus area of the Budget is the modernisation of customs and trade logistics through digital integration and technology-driven governance.The Government proposes the establishment of a single interconnected digital window for cargo clearance approvals, enabling seamless interaction among multiple regulatory agencies. Goods that do not require additional compliance clearances will receive immediate customs clearance upon online registration and duty payment.Further, a Customs Integrated System (CIS) will be implemented over the next two years as a unified platform for all customs processes. The use of Artificial Intelligence (AI), advanced imaging technologies, and non-intrusive container scanning will be expanded across major ports with the objective of scanning every container while minimizing physical inspections.These measures are expected to reduce transaction costs, improve logistics efficiency, and enhance India's competitiveness in international trade.
To deepen capital markets and attract global investment, the Budget proposes significant reforms under the Portfolio Investment Scheme (PIS).Individual Persons Resident Outside India (PROIs) will now be allowed to invest in equity instruments of listed Indian companies. The individual investment limit under PIS is proposed to increase from 5% to 10%, while the overall limit for individual PROIs is proposed to rise from 10% to 24%.These reforms are expected to enhance market liquidity, broaden investor participation, and strengthen India's attractiveness as an investment destination.
One of the most significant proposals relates to the rationalisation of the Minimum Alternate Tax (MAT) framework.The Budget proposes:
These measures seek to reduce tax disputes, improve certainty, and create a more predictable taxation environment for investors and businesses.
The Budget introduces several measures aimed at reducing litigation and fostering voluntary compliance.Key reforms include:
These changes represent a shift from punitive enforcement towards a facilitative and trust-based regulatory approach.
The Government is strengthening the Authorised Economic Operator (AEO) framework to facilitate trusted businesses.Several incentives have been proposed:
These reforms are expected to improve supply-chain efficiency and reduce compliance costs for businesses engaged in international trade.
India's EoDB transformation increasingly focuses on decriminalisation, simplification, and digitisation.The Jan Vishwas (Amendment of Provisions) Act, 2023 decriminalised 183 provisions across 42 Acts. Building upon this initiative, the Jan Vishwas Amendment Bill, 2025 proposes amendments to 355 provisions, including the decriminalisation of 288 provisions related to Ease of Doing Business and 67 provisions aimed at Ease of Living.Environmental legislation, including provisions under:
have also witnessed rationalisation of minor offences to encourage trust-based governance.
The National Single Window System (NSWS) has emerged as a flagship digital reform for business approvals.The platform:
NSWS significantly reduces approval timelines, simplifies documentation, and improves transparency through a unified digital interface.
Several States and Union Territories have introduced innovative reforms beyond standard templates.Key initiatives include:
These reforms demonstrate the increasing role of States as critical drivers of India's Ease of Doing Business ecosystem.
Beyond Budget announcements, broader structural reforms continue to improve business efficiency.Key developments include:
These reforms collectively reduce regulatory complexity, improve access to finance, and enhance operational flexibility for businesses.
India's Ease of Doing Business agenda has evolved from administrative simplification to a comprehensive framework encompassing digital governance, trust-based regulation, tax certainty, customs modernisation, and investment facilitation. The Union Budget 2026-27 further strengthens this trajectory through targeted reforms aimed at reducing compliance burdens, enhancing investor confidence, and improving business predictability. As India advances toward the vision of Viksit Bharat @2047, sustained regulatory transformation will remain central to accelerating economic growth, attracting global capital, and strengthening competitiveness.
Updated – 05 February 2026 ; 06:06 PM | News Source:
PIB Delhi – Ease of Doing Business: India’s Ongoing Regulatory Transformation