The business landscape in India has undergone tremendous transformation in the past decade. The country has emerged as a preferred destination for enterprise and investment with accelerated approvals, simplified compliance, and digitally integrated systems. The progress over the last decade is an outcome of the Prime Minister Narendra Modi’s government’s continued effort to drive reforms, which are practical, low-cost, and high-impact interventions – empowering enterprises and unlocking innovation.

Starting, operating, and exiting a business– which were once perceived as being complex and time-consuming– have now become significantly faster and more transparent. Spanning across decriminalisation of business laws, reduction in compliances, digital approvals, and faster exit mechanisms, these reforms have improved mechanisms and processes through which government systems engage with businesses, creating a better streamlined, more inclusive, and globally competitive business environment in India.

Creating a Trust-Based Business Ecosystem

Regulatory simplification has been the key pillar of the PM Modi-led government’s reform approach. Over 42,000 compliances have been rationalised across different central ministries and departments, resulting in the removal of redundancies, reduction in paperwork, and elimination of outdated requirements that impact daily business operations. These changes have minimised delays and reduced compliance-related costs for small and medium enterprises and businesses. The government has also decriminalised over 3,700 provisions that previously imposed penal consequences for minor defaults. The move, by ensuring businesses are not punished for procedural or technical lapses, has facilitated a trust-based regulatory environment. The enactment of the Jan Vishwas Act, 2023 has further amended 183 provisions across 42 laws spanning across diverse sectors, removing criminal penalties in cases of minor non-compliances.

These reforms together have helped simplify India’s business-related laws, reducing the burden on enterprises and establishing an environment of trust and regulatory clarity for businesses.

Faster Approvals Through Digital Integration

The integration of digital platforms to streamline approvals and reduce administrative delays has been the central tenet of the PM Modi-led government’s reforms. To enable time-bound clearances and enhance operational efficiency, the government launched the National Single Window System (NSWS) in 2021. A transformative initiative, the NSWS provides a single digital interface for obtaining approvals across central ministries and state departments. It has eliminated the need for multiple applications and has streamlined Government to Business (G2B) ecosystems – furthering the ease of doing business in the country. As per the latest available data, the NSWS portal has facilitated over 75,000 business approvals with users from over 150 countries.

The Centre for Processing Accelerated Corporate Exit (C-PACE), complementing the reforms in business entry and operations, has enabled faster and smoother exits for businesses. C-PACE has reduced the average closure time for a business from nearly two years to just 90 days – a move that inspires confidence in businesses and supports capital reallocation.

Empowering Startups Through Enabling Frameworks

The emergence of India as the world’s third-largest startup ecosystem is closely tied to reforms that have relaxed or removed early-stage barriers and enhanced formalisation. Process-driven improvements such as the digitisation of company incorporation via integrated web forms, simplified PAN-TAN registration, self-certification for certain compliances, simplified incorporation processes for startups (SPICe+), and fast-track IP filings have played a central role in forging this ecosystem.

These simple yet powerful reforms have reduced turnaround times, lowered entry costs, and eased administrative procedures for new businesses. The result of all this is the growth that the startup ecosystem has witnessed over the last decade. Today, there are over 1.61 lakh recognised startups in the country as against just 500 in 2016. These startups have created over 17.7 lakh direct jobs, and over 100 of these are unicorns. Around 50% of these startups are based in Tier II and Tier III cities, and more than 73,000 have at least one director.

Process reforms have enabled broader participation in the formal innovation economy by removing procedural frictions, establishing entrepreneurship as an exciting prospect across regions and sectors.

Strengthening MSMEs Through Formalisation

India’s MSME sector, which employs over 26 crore individuals and accounts for more than 45% of the country’s total exports, has benefited immensely from the introduction of reforms. The Udyam Portal has brought over 3 crore MSMEs into the formal economy by enabling their access to institutional credit, government schemes, and procurement platforms.

The evolution of public procurement through the Government e-Marketplace (GeM) is a reform that complements the Udyam Portal. The GeM recorded a gross merchandise value (GMV) of Rs. 5.4 lakh crore in FY25 (up to February), with around 38% of the procurement sourced from micro and small enterprises. Under the SWAYATT initiative, over 1.8 lakh women-led businesses have been onboarded, reflecting the inclusive reach of the reform-driven marketplace.

These interventions together have strengthened formalisation, promoted transparency, and enhanced wider participation of MSMEs in India’s economic story, reinforcing the importance of process reforms in creating a more accessible and inclusive business ecosystem.

Enhanced Capital Access for Entrepreneurs

Along with impactful reforms, the Modi government has rolled out targeted capital for entrepreneurs to boost growth. SIDBI-managed Fund of Funds for Startups (FFS) has catalysed investments in nearly 1,200 startups, generating over 2 lakh jobs. The Startup India Seed Fund Scheme (SISFS) has supported 2,647 startups through 213 incubators, generating over 16,000 jobs. The Credit Guarantee Scheme for Startups (CGSS) has facilitated over 260 loans worth Rs. 604 crore, including to women-led startups, easing access to credit.

These government-led initiatives are providing startups with ample avenues to meet their funding needs, furthering an innovative and resilient startup ecosystem in the country.

Global Recognition of India’s Reform Trajectory

India’s steady rise in major global indices is reflective of the impact of process reforms brought in by the Modi government, establishing the country as a credible business destination. These reforms have contributed to a regulatory environment that is transparent, responsive, and investor-friendly – enhancing the country’s performance across key indices where India now ranks: 1st in Global Retail Development, 3rd in Global Unicorn Index, 5th in Global Manufacturing Output and 39th in Global Innovation Index.

With the institutionalisation of process reforms, India’s stature as a reform-driven and future-ready economy is being reinforced on the global stage.

Towards a Business-Ready India

The progress made in the last eleven years under the leadership of PM Modi has shown how effective targeted process reforms could be. By simplifying compliance, digitising service delivery, and reducing procedural delays, India has made great strides toward transparent and accountable economic governance.

Reforms will remain central to realising the vision of a Viksit Bharat — one where enterprise is enabled, opportunities are inclusive, and growth is both sustained and broad-based.