Transforming Business Landscape: Non-Financial Sector Reforms on the Horizon

A new high-level committee will soon begin work on regulatory reforms in the non-financial sector to enhance ease of doing business, as announced in India's Budget 2025-26. Finance Minister Sitharaman highlighted the need for competitive cooperative federalism among states and a new Investment Friendliness Index to foster investor-friendly environments.

In a significant move towards enhancing ease of doing business, India's budget for 2025-26 has announced the formation of a high-level committee tasked with regulatory reforms in the non-financial sector. This initiative, unveiled by Finance Minister Nirmala Sitharaman, aims to review current regulations, certifications, licenses, and permissions, working towards trust-based economic governance.

The committee is expected to present its recommendations within a year, focusing on modernizing regulatory frameworks to be more flexible and people-friendly. Ajay Seth, Finance Secretary, emphasized the importance of aligning these reforms with technological advancements and future requirements.

The government's plan also includes fostering competitive cooperative federalism among states through an Investment Friendliness Index, encouraging states to implement business-friendly reforms to attract investment. The Financial Stability and Development Council will oversee parallel reforms in the financial sector to support efficient capital usage.

(With inputs from agencies.)