In the face of US tariff crisis, government to accelerate ease of doing business reforms

Due to the ongoing economic crisis because of India and US not being able to reach a trade deal, the Indian government seems to be going fast on economic reforms that may make it easier to do business in India.

The central government is making fast changes to its several policies to deregulate norms and implement compliance reforms to boost the ease of doing business. The government has introduced a series of measures, including simplification of foreign investment rules, decriminalisation of minor offences, and an upcoming Investment Friendliness Index. These swift yet significant changes underline the government’s commitment to create a more enabling environment for industries.

Key Reforms in process

The key reforms introduced by the government to accelerate the deregulation are:

The government is setting up a high-level committee to review and overhaul non-financial sector regulations.

The government introduced the Jan Vishwas Bill 2.0 in August 2025 on a fast-track basis to decriminalise more than 100 minor offences.

To make India more attractive to global investors and attract them to India, the government is simplifying foreign direct investment norms.

Rolling out Ease of Doing Business 2.0, including tax process simplification.

Launching a new Investment Friendliness Index of States in 2025 to promote competitive and cooperative federalism.

Leveraging the Financial Stability and Development Council framework to drive growth in the financial sector.

Why did the government introduce the reforms?

The economy worldwide is in a state of uncertainty, which is an obvious threat to India’s well-being. Indian goods are being exposed to tariff-related challenges from the Trump-led US government, which is a major threat, especially to the Indian exporters.

What are the states doing?

Following the lead of the central government, some states have also initiated reforms:

Rajasthan is allowing night work for women in commercial establishments.

Delhi is removing redundant licensing requirements for hospitality businesses.

Tamil Nadu is exempting certain industries from pollution consent.

The newly introduced deregulations by the government are a clear signal of the pro-business stance the government has adopted now. Investors should closely track these norms and also have a lookout for more measures that are likely to come up as they are expected to strengthen India’s investment climate. For investors, the takeaway is clear: regulatory streamlining has great potential and will probably make India an increasingly attractive destination despite global uncertainties.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: Government of India