India Advances Business Reforms to Boost Ease of Doing Business
The Government of India is committed to enhancing the ease of doing business by implementing ongoing legislative and policy reforms. These changes aim to adapt to the evolving needs of various stakeholders while significantly reducing the criminalization of minor infractions. Instead, the government is prioritizing civil penalties and administrative solutions, ensuring laws are more practical and balanced.
A landmark achievement in this effort is the Jan Vishwas (Amendment of Provisions) Act, 2023, which eliminated criminal penalties for numerous minor offenses across central laws. Following this, the Jan Vishwas (Amendment of Provisions) Act, 2026 was published on April 8, 2026, standardizing provisions across 79 Central Acts managed by 23 different ministries and departments. This initiative is geared towards fostering trust-based governance while reducing the burden of compliance and promoting a more attractive business environment.
Promoting Alternative Dispute Resolution
The Government is also actively enhancing alternative dispute resolution (ADR) mechanisms such as arbitration and mediation. Recognized for being less adversarial, these methods provide a superior alternative to traditional dispute resolution practices. Legislative and policy measures are underway to bolster the effectiveness and efficiency of these mechanisms.
Key reforms include progressive amendments to the Arbitration and Conciliation Act, initiated in 2015 and updated in subsequent years. These amendments focus on ensuring timely arbitration proceedings, the neutrality of arbitrators, limiting judicial interference, and promoting institutional arbitration. Additionally, the Commercial Courts Act, amended in 2018, now requires parties to engage in pre-institution mediation when seeking resolution for commercial disputes of certain values.
Global Rankings and Infrastructure Development
India’s government has diligently worked to improve the business regulatory environment, transitioning from a compliance-heavy to a facilitation-driven model. This has led to an increased investor confidence, as reflected in international rankings. The World Bank’s Doing Business Report of 2019 positioned India at 63rd out of 190 countries, a commendable leap from the 142nd spot in 2014.
The Centrally Sponsored Scheme for the Development of Infrastructure Facilities for District and Subordinate Courts remains vital to these reforms. Regular assessments by the Department Related Parliamentary Standing Committee and NITI Aayog have confirmed the scheme’s alignment with national policies and its positive impact on case resolution time. Districts with enhanced court room density reported a 3-8% decrease in average case pending and a significant 16% reduction in case resolution time.
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