The Ease of Doing Business (EoDB) index is a ranking system established by the World Bank Group. Ease of Doing Business (EoDB) 2.0 in India focuses on "trust-based governance," aimed at reducing the compliance burden, automating processes, and enhancing, state-led reforms for a more business-friendly environment. The Union Budget of 2026-27 has put the principle of Ease of Doing Business (EoDB) at the forefront, also the operationalization of digital trade facilitation, tax predictability, as well as decriminalisation of minor offences.
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Key highlights
- Ease of Doing Business 2.0
- What is Ease of Doing Business (EoDB)?
- Importance of EoDB for India
- EoDB in Union Budget 2026-27
- Regulatory Transformation in India
- State and Sectoral Reforms in Budget 2026
- India towards Viksit Bharat @2047
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The historical course of economic reform in India has been gradually making Ease of Doing Business (EoDB) a key factor of growth and competitive advantage. The Union Budget 2026-27 supports this direction with a series of initiatives stimulating digital trade, including facilitation, tax predictability, reduction of litigation, and trusted governance. These efforts have been developed as a result of a decade of structural and regulatory reforms to make compliance less complex, more transparent, and increase investor confidence. This is an interesting development in that it depicts a significant change in the regulatory structure of India- a move that is on par with the Vision of Viksit Bharat 2047. To aspirants of the UPSC Civil Services Examination, a review of this budget is a must in understanding governance reforms, economic policy and institutional efficiency in a comprehensive way. The subsequent influx of foreign direct investment, corporate growth and institutionalisation highlights a long-term commitment to incorporating India into the entire world value generation networks, thus making it applicable to align with the long-term Viksit Bharat 2047 vision.
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What is Ease of Doing Business (EoDB)?
Ease of Doing Business (EoDB) is a measure that gives the degree to which a given economic environment supports the growth, establishment, and running of businesses. It includes such aspects as clarity of regulations, effectiveness of approval procedure, certainty in taxes, and dispute resolution. India was ranked 142nd out of 190 countries (2014). In continuous taxation, customs, labor policy, and digital administration reforms, the country has significantly improved its position to 63rd in 2020.
Importance of EoDB for India
In India, EoDB is not only all about global rankings but also a mechanism aimed at attracting foreign direct investment (FDI), entrepreneurship, and supporting industrial development. The increased FDI inflows have been driven by the country directly to India between 2014 and 2025, of USD 748.38 billion, reflecting boons to its economy by 143 percent in comparison to the last decade (Economic Survey, 2025-26).
EoDB in Union Budget 2026-27
- The Union Budget 2026-2027 reinforces the role of digitisation, tax certainty, access to investors, and decreases in litigation as pillars of economic growth.
- It focuses on facilitating the digital trade that is enabled by opening up a single, integrated digital window that is focused on customs clearance, together with the Customs Integrated System.
- The PROI of the Portfolio Investment Scheme has been increased, and thus, investor accessibility has been augmented, and liquidity in the market increased.
- The proposed Modified Annual Tax (MAT) was 14%, which enhanced the tax certainty and reduced the possible disputes.
- The inclusion of trusted importers recognized in the risk management systems has facilitated the process of factory-to-ship clearance, which practically reduces the need to conduct the physical clearance.
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Ease of Doing Business: India's Regulatory Transformation
The regulatory transformation in India can be seen as a perfect illustration of a decade-long effort to simplify compliance, promote greater transparency, and build investor confidence. This course is continued in the Union Budget 2026-27, which gives greater emphasis to changes in Ease of Doing Business (EoDB).
Digital Trade Facilitation in India
The budget suggests the introduction of a National Single Window System (NSWS) in cargo clearance, accompanied by the implementation of a Customs Integrated System (CIS) within a period of two years. The official figures show that since its opening, NSWS has issued more than 829,750 approvals and therefore has not only shortened the duration of approvals but also made operations more efficient (Ministry of Commerce & Industry). Implementation of artificial intelligence based on non-invasive scanning is expected to be rolled out in large-scale ports, with the aim of potentially having all containers covered. The objectives of these initiatives are to reduce transaction costs and improve the efficiency of operations.
Increasing Investor Access in India
Reforms in taxation, including the rationalisation of Minimum Alternate Tax (MAT) to 14% and its designation as a final tax is intended to cut disputes and enhance predictability. The Portfolio Investment Scheme limits applied to Persons Resident Outside India (PROIs) have also been increased to 24% from the last 10% mark, and this has further provided increased liquidity in the market (Union Budget 2026-27).
Trust-Based Indian Governance
Jan Vishwas Acts (2023, 2025) decriminalised more than five hundred provisions in a range of legislations, allowing the article of any minor offence to have criminal liability reduction. Through this mode of trust, administrative expenses of compliance are reduced, and this fosters a more business-conscious atmosphere.
Structural and Sectoral Reforms in India
Reforms include the consolidation of 9,446 circulars into 238 Master Direction documents by the Reserve Bank of India, a simplification of the GST 2.0 regime into a two-rate model, and reforms to the labour code that reduced the approval period of 90 days to 30 days. All these efforts support the position of competitiveness of India and correspond to the Viksit Bharat 2047 vision.
From Clearance to Compliance: State and Sectoral Reforms in Budget 2026
The reform path taken by India has changed to include not only simplifying business clearances but also playing a role in simplifying the entire compliance. The Union Budget 2026-27 and the related projects show how states and other sectors are transforming the governance models to become more efficient and instil trust.
National Single Window System (NSWS)
The National Single Window System (NSWS) incorporates the approvals of 32 central departments and states, and has given out more than 829,750 approvals since launch (Ministry of Commerce & Industry). Before the procedure delays are assured, complementary mechanisms, such as PARIVESH 3.0 on environmental clearances and e-gram Swaraj on decentralised planning, are used to enhance transparency.
State‑Led Innovations in India for EoDB
States have implemented state-specific reforms such as Andhra Pradesh and Uttarakhand have eliminated land-conversion requirements; Assam and Odisha have adopted negative lists of mixed land-use zones; and Haryana, Tamil Nadu and Uttar Pradesh have liberalised building bye-laws to increase land use. These actions comprise decentralised problem-solving that is sensitive to local settings.
Reforms in Indian Labour and Compliance Laws
The Bihar, Gujarat, and Telangana labour reforms have removed the employment limitations of women in the industries. Another way in which compliance reduction has been precisely achieved is through Tripura, which has been undergoing total deregulation, which includes land, labour and utilities deregulation, leading to investment commitment that has been increasing since the Rising Northeastern Investors Summit of 2025, providing real evidence of what deregulation can enable.
Sectoral Measures Taken by India
Grassroots reforms are further boosted by the Business Reforms Action Plan (BRAP 2026) and District BRAP, and regulatory clarity is improved by consolidating 9,446 circulars into 238 Master Directions by the Reserve Bank of India. There is a single overarching concern of these reforms, which marks the shift of the regulation paradigm in India towards a more compliance-based rather than a clearance-based mode and thus enhances competitiveness and investor trust.
India towards Viksit Bharat @2047
The Viksit Bharat @2047 vision of India aims at making the country a globalised, inclusive, and resilient economy over the long term. The Union Budget 2026-27 supports this trend with taxation, trade and governance reforms.
India’s Vision of Inclusive Growth
The framework focuses on digitalisation, regulation based on trust, and compliance simplification to reinforce the expansion of enterprises. India received USD 748.38 billion FDI within the period of 2014-25, the figure had increased 143 percent over the last 10 years and was indicative of increased investor confidence (Economic Survey 2025-26).
Enhancing Efficacy of Indian Institutions
National Single Window System (NSWS), PARIVESH 3.0 and BRAP 2026 are just some of the reforms that make approvals easier and make compliance lighter. NSWS itself has taken more than 829,750 approvals, which evidence the institutional integration and effectiveness (Ministry of Commerce & Industry).
Indian Reforms for Global Integration
The two-rate simplified form of GST 2.0 and consolidation of labour codes, as well as rationalisation of 9,446 circulars into 238 Master Directions, maximise predictability and lower transaction costs. Financial markets are additionally integrating as 100 percent FDI possibilities in insurance reforms pave the way to global integration.
Conclusion
The Government's actions on Ease of Doing Business reforms, supported by the Union Budget 2026-27, should be regarded as a move towards complete transparency, predictability, and efficiency in the government. The reforms will easily make the country more competitive and inspire trust among investors through the integration of digital platforms and rationalisation of taxation, decriminalisation of minor offences, and building critical investor trust. Such provisions not only centralise the transformation in the regulations of India but also, in accordance with the long-term vision Viksit Bharat @2047, because of which the country is bound to pursue sustainable growth, further globalisation, and inclusive growth.