Union Budget 2026–27 along with various reforms aim to enhance India’s Ease of Doing Business (EoDB) with measures like digital trade facilitation, tax certainty, reduced compliance and litigation, etc.
Need for Expanding Business Environment in India
- Scaling Domestic Manufacturing: To attain import substitution aligning with vision of swadeshi and aatmanirbharta in key sectors including Electronics; Automobiles; Pharmaceuticals; Defence; etc.
- Export Resilience and Diversification: To navigate uncertain global trade environments, demand volatility, and supply chain disruptions.
- Fostering Economic Growth: Achieve the national economic target of 5 trillion dollar by 2027.
- Ensuring Long-term Resilience: Improving living conditions, reducing poverty, and enhancing public health and education by improved taxation.
Initiatives taken to strengthen Business Environment
- Institutional reforms: Start-up India, Credit Guarantee Scheme, digital credit assessment models etc. for transparent, tech-enabled, investor-friendly ecosystem.
- Regulatory Reforms: Jan Vishwas Amendment Act 2023 decriminalized various provisions and reduced liability for minor and technical offences; consolidation of labor laws into four labour codes, etc.
- Taxation Reforms: GST 2.0 introduced two rate structure to improve price competitiveness and compliance; Union Budget 2026-27 proposed reducing Minimum Alternate Tax (MAT) rate from 15% to 14% and to treat it as final tax, etc.
