New Delhi: A quiet but sweeping wave of nuts-and-bolts reforms is reshaping India’s industrial landscape, changing land and labour rules, among others, to make it easier to start a business or manufacture goods. Nudged by the Centre, many state governments are discarding obsolete land use rules that forced factories to keep 40% of their plots idle, and be serviced by 60-foot wide roads. Compliance checks by government inspectors are being limited through a new regime that allows third-party verification.
These reforms, which can mostly be implemented through rule changes, have been identified by a task force led by cabinet secretary TV Somanathan.
Madhya Pradesh, Andhra Pradesh and Tripura have been at the forefront of implementing these measures, a top government official told ET.
Also read: How Chandrababu Naidu & son Lokesh are attracting big money for Andhra Pradesh to challenge Bengaluru’s lead
23 Key Reforms
“Most states have fully implemented more than 50% of the steps,” the official said, underscoring the momentum building behind the effort. Every state, the official said, has responded positively to the 23 key reforms outlined in the exercise, with many displaying a clear eagerness to move ahead.
The measures implemented include extending working hours for shops and establishments without altering labour schedules, permitting women to work in hazardous industries or night shifts, lowering thresholds for factory closures, and easing land norms to allow for mixed-use development. Land availability for manufacturing units has increased, thanks to such practical measures.
Also read: UP govt rolls out landmark night-shift rules for women; double wages, safety in focus
Driving this transformation from New Delhi is a deregulation cell within the Cabinet Secretariat, which is coordinating efforts with states and tracking progress in real time. The reforms, first highlighted in the Economic Survey issued in January, are aimed at unblocking the final mile of India’s investment ecosystem.
With most big-ticket reforms already carried out at the central level, the focus has shifted to states where operational frictions run deepest. “Regulations increase the cost of all operational decisions in firms,” the survey had noted, identifying key areas that required targeted action to make business easier. “For example, an Indian factory owner with a 5,000- square metre plot can be required to forgo up to 69% of their plot to comply with building standards. This tract of lost land can cost up to Rs 1.58 crore and could have been used to create up to 509 additional jobs.”
States are implementing changes to address this archaic, wasteful land use. A new set of measures, spanning multiple sectors, is now being formulated. “Significant progress is being achieved so far,” said the official cited.
A parallel push is underway at the national level. A panel led by Niti Aayog member Rajiv Gauba is finalising central interventions to simplify non-financial regulatory frameworks — the next frontier in India’s drive to enhance the ease of doing business.
These reforms, which can mostly be implemented through rule changes, have been identified by a task force led by cabinet secretary TV Somanathan.
Madhya Pradesh, Andhra Pradesh and Tripura have been at the forefront of implementing these measures, a top government official told ET.
Also read: How Chandrababu Naidu & son Lokesh are attracting big money for Andhra Pradesh to challenge Bengaluru’s lead
Nudged by Centre, states initiate slew of reforms encouraging startups, manufacturing
23 Key Reforms
“Most states have fully implemented more than 50% of the steps,” the official said, underscoring the momentum building behind the effort. Every state, the official said, has responded positively to the 23 key reforms outlined in the exercise, with many displaying a clear eagerness to move ahead.The measures implemented include extending working hours for shops and establishments without altering labour schedules, permitting women to work in hazardous industries or night shifts, lowering thresholds for factory closures, and easing land norms to allow for mixed-use development. Land availability for manufacturing units has increased, thanks to such practical measures.
Also read: UP govt rolls out landmark night-shift rules for women; double wages, safety in focus
Driving this transformation from New Delhi is a deregulation cell within the Cabinet Secretariat, which is coordinating efforts with states and tracking progress in real time. The reforms, first highlighted in the Economic Survey issued in January, are aimed at unblocking the final mile of India’s investment ecosystem.
With most big-ticket reforms already carried out at the central level, the focus has shifted to states where operational frictions run deepest. “Regulations increase the cost of all operational decisions in firms,” the survey had noted, identifying key areas that required targeted action to make business easier. “For example, an Indian factory owner with a 5,000- square metre plot can be required to forgo up to 69% of their plot to comply with building standards. This tract of lost land can cost up to Rs 1.58 crore and could have been used to create up to 509 additional jobs.”
States are implementing changes to address this archaic, wasteful land use. A new set of measures, spanning multiple sectors, is now being formulated. “Significant progress is being achieved so far,” said the official cited.
A parallel push is underway at the national level. A panel led by Niti Aayog member Rajiv Gauba is finalising central interventions to simplify non-financial regulatory frameworks — the next frontier in India’s drive to enhance the ease of doing business.
