Parliamentary Standing Committee on Commerce released report on Ease of Doing Business in India | Current Affairs | Vision IAS

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In Summary

  • Ease of Doing Business (EoDB) aims to reduce procedural burdens for businesses, with India improving its global ranking from 142nd in 2015 to 63rd in 2020.
  • Recognized startups surged to over 2.23 lakh by early 2026, creating 23.3 lakh formal jobs, supported by initiatives like Districts as Export Hubs.
  • Persistent issues include regulatory fragmentation, approval delays, uneven state implementation, MSME credit constraints, and export/customs bottlenecks, requiring reforms like merged licenses and digitized customs.

In Summary

Ease of Doing Business (EoDB) refers to creating a regulatory and administrative environment in which businesses can start, operate, expand and exit with minimum unnecessary procedural burden.

Key highlights of the Report

  • Improved global position: India's Doing Business ranking (World Bank Group's Ease of Doing Business index) improved from 142nd in 2015 to 63rd in 2020 among 190 economies.
  • Improved competitiveness: India improved by 6 positions to 37th in 2022 in the Institute for Management Development (IMD) World Competitiveness Index, among 63 economies.
  • Relaxed onboarding regimes: Recognized startups grew from a mere 502 in 2016 to over 2.23 lakh by early 2026, directly creating 23.3 lakh formal jobs.
  • District-level approach: The Districts as Export Hubs initiative extends regulatory simplification and supply-chain infrastructure to districts.

Issues that still persists

Recommendations

Regulatory fragmentation: Overlapping laws, licences and compliances raise costs.

Merge licences, introduce One Licence–One Renewal and adopt risk-based regulation.

Weak State/local EoD

Expand District Business Reform Action Plan (D-BRAP) and integrate approvals with National Single Window System (NSWS).

Approval delays: Licences, No Objection Certificates (NOCs) and renewals 

Ensure time-bound approvals, deemed approval and automatic renewal.

Uneven State implementation: Reforms may not improve realities.

Make Business Reform Action Plan (BRAP) outcome-based with Ground Reality Verification, third-party audits.

MSME credit constraints: Collateral and documentation restrict working capital.

Expand Udyam, credit guarantees, collateral-free and cash-flow-based lending.

Export & customs bottlenecks: Fragmented procedures and slow clearance 

Digitize trade and upgrade Indian Customs Electronic Gateway (ICEGATE) to Artificial Intelligence-driven clearance.

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Artificial Intelligence (AI)-driven clearance

The use of artificial intelligence technologies to automate, expedite, and improve the accuracy of customs clearance processes, reducing manual intervention and potential delays.

Indian Customs Electronic Gateway (ICEGATE)

An e-commerce portal of the Indian Customs that provides various services related to customs clearance and trade facilitation. The article suggests upgrading it with AI for faster clearance.

Udyam

An online portal for MSME registration in India, simplifying the process and facilitating access to government schemes and benefits.

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