GOVERNMENT TO LAUNCH AN INVESTMENT FRIENDLINESS INDEX OF STATES IN 2025

JAN VISHWAS BILL 2.0 TO BE BROUGHT TO DECRIMINALIZE MORE THAN 100 PROVISIONS IN VARIOUS LAWS

The Union Finance & Corporate Affairs Minister presented the Union Budget 2025-26 in the Parliament today.

Regulatory Reforms

In her Budget speech, the Union Finance Minister said that the Government is determined to ensure that the regulations must keep up with technological innovations and global policy developments. A light-touch regulatory framework based on principles and trust will unleash productivity and employment. Through this framework, regulations will be updated that were made under old laws.

To develop this modern, flexible, people-friendly, and trust-based regulatory framework appropriate for the twenty-first century, Smt. Nirmala Sitharaman proposed four specific measures:

High Level Committee for Regulatory Reforms

A High-Level Committee for Regulatory Reforms will be set up for a review of all non-financial sector regulations, certifications, licenses, and permissions, the Union Finance Minister added. The committee will be expected make recommendations within a year. The objective is to strengthen trust-based economic governance and take transformational measures to enhance ‘ease of doing business’, especially in matters of inspections and compliances. States will be encouraged to join in this endeavour.  

Investment Friendliness Index of States

Smt. Nirmala Sitharaman added that an Investment Friendliness Index of States will be launched in 2025 to further the spirit of competitive cooperative federalism.

FSDC Mechanism

Under the Financial Stability and Development Council, a mechanism will be set up to evaluate impact of the current financial regulations and subsidiary instructions, the Union Finance Minister said. It will also formulate a framework to enhance their responsiveness and development of the financial sector.

Jan Vishwas Bill 2.0

Smt. Nirmala Sitharaman informed that the Government will now bring up the Jan Vishwas Bill 2.0 to decriminalize more than 100 provisions in various laws. In the Jan Vishwas Act 2023, more than 180 legal provisions were decriminalized.

In the last ten years in several aspects, including financial and non-financial, our Government has demonstrated a steadfast commitment to ‘Ease of Doing Business’, the Union Finance Minister said.

Regulatory reform: establishment of a committee to review and streamline compliance in non financial sectors. A High Level Committee for Regulatory Reforms will review all non financial sector regulations, certifications, licences, and permissions and recommend measures to streamline inspections and compliances; it is to deliver recommendations within a year and States are encouraged to join. Complementary initiatives include an Investment Friendliness Index of States, an FSDC mechanism to evaluate and enhance responsiveness of financial regulations and subsidiary instructions, and the Jan Vishwas Bill 2.0 to decriminalise additional legal provisions.