DPIIT advances trust-based governance to ease business regulations across India
New Delhi, October 27
The Department for Promotion of Industry and Internal Trade, under the Ministry of Commerce and Industry, is advancing a shift from a permission-based regulatory system to trust-based governance through reforms aimed at reducing business compliance, supporting startups, attracting investment and simplifying regulatory approvals.
According to an official statement, the government has reduced 47,957 compliance requirements across Central Ministries and States and Union Territories (UTs). Of these, 22,290 have been digitised, 16,141 simplified, 5,255 decriminalised and 4,271 eliminated.
The Ministry of Commerce and Industry also stated that the Jan Vishwas Acts have decriminalised 900 provisions of Central laws, including 183 provisions across 42 Acts in 2023 and 717 provisions across 79 Acts in 2026. These measures are aimed at reducing the regulatory burden on businesses and making compliance simpler.
DPIIT has also expanded support for startups through the Startup India initiative. The department has recognised 2,50,046 startups, which have reported generating more than 25.42 lakh jobs across over 770 districts. The release stated that 52 per cent of recognised startups are from non-metro cities, while 48 per cent have at least one woman director.
Under the Credit Guarantee Scheme for Startups, 532 loans worth Rs 1,662.71 crore have received guarantees. The maximum guarantee cover per borrower has been increased from Rs 10 crore to Rs 20 crore, while the annual fee has been reduced to 1 per cent for 27 Champion Sectors.
The government has also undertaken reforms to simplify regulatory approvals and improve access to investment. India received USD 843 billion in foreign direct investment (FDI) between FY 2014-15 and FY 2025-26, which was 169 per cent higher than the USD 313 billion received during the preceding 12 years. Annual FDI inflows reached a record USD 94.53 billion in FY 2025-26, according to the release.
Digital clearances are another focus of the reform programme. The National Single Window System (NSWS) has received 15,49,850 applications, registered 5,76,778 businesses and delivered more than 8.5 lakh approvals. The platform now offers 3,779 services, comprising 327 Central and 3,452 State services, compared with 142 Central approvals and participation from 14 States and UTs at its soft launch in September 2021.
The portal also provides access in 22 Indian languages and integrates services from 34 States and UTs and 32 Central Ministries and Departments. Its Know Your Approvals module helps businesses identify the permissions required to establish and operate their ventures.
Further reforms include the consolidation of 29 Central labour laws into four Labour Codes and changes to licensing requirements for factories and contract labour.
Together, these measures form part of DPIIT's effort to simplify regulations, reduce procedural hurdles and make it easier for businesses to start, operate and expand across India.
— ANI
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