Centre Takes Action to Simplify Regulations and Boost Investment
The Government of India is stepping up efforts to improve the regulatory environment in the country, with a new mission to reduce compliance burdens across key sectors. In a bid to boost investment, increase economic growth, and remove unnecessary regulatory roadblocks, the Centre has set up a high-level task force under the leadership of the Cabinet Secretary.
The main objective of this task force is to focus on deregulating critical sectors and reducing the compliance burdens that have long plagued enterprises and projects. The move comes as part of the government’s broader plan to enhance India’s investment climate and make it easier for businesses to operate. The task force was formed on January 24, 2025, with the aim of ensuring that regulatory obstacles no longer hold back India’s growth potential. The task force has identified 11 ministries and departments as having the highest number of regulatory compliances, including the Ministry of Environment, Ministry of Corporate Affairs, and others. Additionally, states with particularly excessive regulations have been flagged for reform. Several Union ministries, including NITI Aayog and the Department for Promotion of Industry and Internal Trade, have been tasked with working alongside state officials to help reduce regulatory hurdles. This collaboration is crucial to ensuring smoother operations for industries, especially those with delayed or stuck “priority” projects.
The task force has already started engaging with state governments. In fact, Cabinet Secretary is scheduled to meet with the chief secretaries of states that are most affected by over-regulation, with a focus on resolving compliance-related delays that are preventing projects from moving forward. In addition to the task force, a new “Deregulation Cell” has been established within the Cabinet Secretariat. This cell will drive the focus on regulatory simplification and ensure that both the Union ministries and states reduce compliance burdens systematically. The government’s goal is to streamline processes across various sectors, from issuing Fire No Objection Certificates to facilitating land allocations and clearing environmental permits. For many businesses, these bureaucratic obstacles lead to significant delays and cost overruns, often affecting critical infrastructure projects.
It has been reported that, at present, regulatory compliance costs in some states exceed ₹600 crore, and land allotment delays can extend as much as 170 days. Such inefficiencies make it difficult for businesses to scale up, and for the government to realise its ambitious infrastructure goals, including the ₹14 lakh crore allocation for development projects. The move to set up the task force follows discussions during the 4th National Conference of Chief Secretaries held in December 2024. During this conference, it was noted that many businesses face challenges due to excessive regulation, which hinders their ability to grow and expand. The government emphasised the importance of systematic deregulation and “line-by-line reform” of existing laws, which often complicate the processes for opening, running, or exiting businesses.
Notably, the need for deregulating employment laws, electricity tariffs, and complex zoning regulations has been highlighted. Restrictions on the employment of women and rigid land-use laws that prevent industries from expanding are also areas targeted for change. The government is now focused on tackling these issues head-on to create a more business-friendly environment and attract both domestic and foreign investment. For entrepreneurs and businesses across India, this move is seen as a much-needed relief. As one business owner shared, “Regulatory challenges have often been a major source of frustration. Delays in approvals and the sheer number of compliances can hold up projects for months, sometimes years. This initiative offers hope that we can see a more efficient process moving forward.”
By eliminating these bottlenecks, the government aims to make the business environment in India more competitive, reduce operational costs, and drive long-term economic growth. The task force’s efforts could help make India’s regulatory environment one of the most efficient and attractive for investors globally. With the government’s recent push for deregulation and reducing the compliance burden, India is on track to become a more attractive destination for investment. By simplifying processes and focusing on urgent areas of reform, such as land allocations, environmental clearances, and labour regulations, the Centre is working to create an ecosystem that nurtures business growth and infrastructure development. As these changes take root, it is expected that India will see an influx of investment, creating new job opportunities and supporting the country’s long-term economic ambitions.
