India’s business landscape has been transformed under PM Modi, with bold reforms, digitalisation, and startup-friendly policies driving unprecedented ease of doing business.
Over the last eleven years, India has undergone a remarkable transformation in its business environment, driven by Prime Minister Narendra Modi’s thrust on reforms, transparency, and digital governance. Today, the world views India not only as an attractive destination for investment but also as a dynamic ecosystem for innovation and entrepreneurship. The government’s consistent focus on dismantling bureaucratic hurdles, encouraging wealth creation, and enabling startups has made “Ease of Doing Business” one of the cornerstones of New India’s growth story.
Until 2014, businesses in India faced a complex web of regulations, rent-seeking, and delays that discouraged entrepreneurship and innovation. The Modi government has steadily dismantled these barriers. Rent-seeking and red-tapism have been replaced with a “red carpet” approach. The government is no longer perceived as an obstacle but as a partner in enterprise, actively enabling and encouraging risk-taking and innovation.
Through landmark reforms such as the removal of retrospective taxation and the repeal of the Angel Tax, the government has ensured a more predictable and transparent tax regime. Additionally, corporate tax rates were slashed—15% for new domestic manufacturing companies and 22% for existing ones—making India one of the most competitive economies for global investors.
Perhaps the most striking example of India’s improved business climate is its start-up ecosystem. Before 2014, India had only a few hundred recognized start-ups. Today, there are more than 1,60,000 recognized start-ups, creating over 17.6 lakh jobs. This surge has propelled India to become the world’s third largest start-up ecosystem after the United States and China.
The start-up boom has been supported by initiatives like the National Single Window System, which integrates approvals into a single platform, and SPICe+ forms that combine multiple company registration services into one. These measures drastically reduce the time, cost, and compliance burden for new entrepreneurs.
A major hallmark of Modi’s governance has been the emphasis on reducing unnecessary compliance. More than 1,500 archaic laws have been repealed and over 45,000 compliances rationalised across central and state governments. This has not only reduced costs for enterprises but also eliminated avenues for harassment and corruption.
Furthermore, reforms in labour laws have simplified 29 separate legislations into four comprehensive labour codes. These not only promote labour welfare but also provide flexibility to industries, balancing the interests of both employers and employees.
For small businesses, artisans, and suppliers, while ensuring value-for-money for government purchases.
The government has harnessed technology to usher in global transparency and efficiency. Faceless tax assessments and appeals have significantly reduced harassment, weakened the “Inspector Raj,” and improved compliance. Automated random labour inspections have further enhanced fairness and transparency.
Similarly, the GeM (Government e-Marketplace) portal has transformed public procurement. By providing an open, digital, and competitive platform, GeM has created a level playing field for small businesses, artisans, and suppliers, while ensuring value-for-money for government purchases.
India’s business reforms have not gone unnoticed globally. The World Bank’s Ease of Doing Business rankings saw India jump 79 places—from 142 in 2014 to 63 in 2019. In the World Bank’s Logistics Performance Index 2023, India rose six places to rank 38th among 139 countries.
These improvements reflect the success of flagship initiatives like PM Gati Shakti and the National Logistics Policy, which are modernising India’s transport and logistics infrastructure to global standards.
Unlike earlier regimes that often distrusted private wealth creators, the Modi government has embraced entrepreneurs as partners in national development. This shift in mindset has created an environment of mutual trust between government and industry. Self-regulation and self-compliance are now encouraged, reflecting a governance model where businesses are trusted to act responsibly.
The surge in innovation has also been reflected in the exponential rise in intellectual property filings. The number of patents granted has increased seventeen-fold, from just 5,978 in 2014–15 to over 1,03,000 in 2023–24. This indicates not just the vibrancy of India’s start-up ecosystem but also the confidence innovators now have in the country’s IP regime.
Processes that once took months can now be completed in days. The SPICe+ form integrates ten services needed for company incorporation, streamlining the process into a single application. Similarly, the National Single Window System provides approvals across ministries and departments through a common digital platform.
These initiatives reflect the government’s drive to make business painless, faceless, and seamless.
Tax reforms have been among the most critical measures to improve business sentiment. Corporate tax rates have been brought down significantly, retrospective taxation scrapped, and Angel Tax repealed.
Most tax filings, assessments, and refunds are now conducted online, making the system faster, transparent, and less prone to harassment. This simplified, transparent tax environment has contributed to record tax collections, reflecting higher compliance and growing trust between taxpayers and the government.
The government has progressively liberalised FDI norms across sectors, making India one of the most open economies for foreign investment. This has resulted in record inflows over the past decade, cementing India’s position as a global investment hub.
Ease of doing business cannot be achieved without robust logistics and infrastructure. Initiatives such as PM Gati Shakti, the National Logistics Policy, and significant investments in highways, airports, and ports have reduced logistics costs and improved efficiency. India’s improved ranking in the global logistics index reflects this progress.
Another important reform has been the decriminalisation of minor business offences. For instance, 50 out of 81 compoundable offences under the Companies Act have been decriminalised, reducing fear among entrepreneurs and encouraging risk-taking.
The cumulative effect of these reforms has been the historic expansion of India’s wealth-creating class. Entrepreneurs, start-ups, and small businesses are now recognised as central to the national growth story. This has not only expanded government resources for welfare and development but also generated millions of jobs, higher incomes, and opportunities across sectors.
The Modi government’s reforms in ease of doing business represent a fundamental mindset shift—from suspicion of wealth creators to partnership with them. Through bold reforms, legal rationalisation, digital transformation, and infrastructure expansion, India has created a business environment that is transparent, competitive, and globally attractive.
The rise of India’s start-up ecosystem, improved global rankings, record foreign investment, and the expansion of wealth creators are testimony to this transformation. More than a policy change, it is a cultural shift—one that treats entrepreneurs as nation builders and innovation as the engine of growth.
As India enters Amrit Kaal, the continued focus on ease of doing business will not only sustain economic momentum but also ensure that India’s rise as a global economic powerhouse is inclusive, sustainable, and irreversible.
