2. India’s Strategic Shift in Business Regulations: From DBR to B-READY

The Government of India has significantly intensified its regulatory reform agenda, marked by a jump of 79 ranks in the World Bank’s erstwhile Doing Business Report (DBR) to reach the 63rd position in 2019. With the World Bank transitioning to the new Business Ready (B-READY) framework, India is preparing for its first comprehensive assessment under this updated methodology in 2026. This transition signifies a move from measuring mere \'ease\' to evaluating the overall business environment, including digital integration and regulatory quality. Summary of Key Developments • Transition to B-READY Framework: Following the discontinuation of the DBR, India is set to be evaluated under the World Bank’s \'B-READY\' assessment in 2026, which covers 10 topics across the entire business lifecycle, including labor, dispute resolution, and market competition. • Business Reforms Action Plan (BRAP): Launched by DPIIT in 2014, BRAP fosters cooperative and competitive federalism by ranking States/UTs based on 9,700+ reforms centered on single-window systems, digitized building permissions, and streamlined inspections. • National Single Window System (NSWS): A digital \'one-stop-shop\' for approvals, integrating 32 Central Ministries and 33 States/UTs, providing access to over 3,300 G2B (Government to Business) clearances to enhance transparency and accountability. • Regulatory Compliance Burden (RCB) Initiative: Since 2020, the government has reduced over 47,000 compliances through digitization, simplification, and elimination of redundant requirements, further bolstered by the \'RCB+\' initiative targeting harmonized state-level Acts. • Decriminalization via Jan Vishwas Act: The Jan Vishwas (Amendment of Provisions) Act, 2023, decriminalized 183 provisions across 42 Acts. The subsequent 2025 Bill aims to amend 355 more provisions to shift from criminal penalties to monetary compounding for minor technical defaults.• Technological Integration: Extensive use of ICT, including Geographic Information System (GIS) mapping for industrial land banks (IILB), has been implemented to provide investors with real-time data on land availability and utility connections. Key Definitions • B-READY (Business Ready): The World Bank’s new benchmarking tool (replacing Ease of Doing Business) that evaluates the business environment based on Regulatory Framework, Public Services, and Operational Efficiency. • Decriminalization: The process of converting criminal offenses (punishable by imprisonment) into civil wrongs or administrative offenses (punishable by fines or penalties). • Compounding of Offenses: A legal mechanism where the offender pays a specified sum to avoid prosecution for a minor or technical violation. Constitutional and Legal Provisions • Article 301: Guarantees Freedom of Trade, Commerce, and Intercourse throughout the territory of India, providing the constitutional basis for a unified national market. • Seventh Schedule (Division of Powers): Since many business regulations fall under the Concurrent List (Labor, Factories) and State List (Land, Police), the BRAP serves as a bridge for center-state coordination. • Jan Vishwas (Amendment of Provisions) Act, 2023: A landmark central legislation enacted to amend multiple acts simultaneously to promote \'Ease of Living\' and \'Ease of Doing Business.\' • Information Technology Act, 2000: Provides the legal framework for the digitization of compliances and the validity of electronic records used in the NSWS. Conclusion India’s regulatory evolution reflects a systemic shift from \'control\' to \'facilitation.\' By integrating technological interventions like the NSWS with legislative reforms like the Jan Vishwas Act, the government is addressing the \'compliance fatigue\' often cited by investors. The upcoming 2026 B-READY assessment will be a litmus test for India’s objective of becoming a global manufacturing hub and achieving a $5 trillion economy. UPSC Relevance • GS Paper II: Governance, Government Policies, and Interventions for development in various sectors. • GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, and growth; Industrial policy and its effects on industrial growth. • Prelims: Key reports (B-READY), DPIIT initiatives (BRAP, NSWS), and specific legislative acts related to economic reforms.