Finance Minister Nirmala Sitharaman on Tuesday said that Modi Government remains steadfast in reducing regulatory burden and enhancing trust-based governance to improve ease of doing business

“Through Budget announcements, we are taking various steps in making India a seamless and export-friendly economy. Where the companies are free to work on innovation, and not on regulations and penalties,” she said while addressing a post budget webinar. Further, she said that a robust manufacturing sector free from unnecessary regulatory bottlenecks will further attract both domestic and foreign investments, driving economic growth, positioning India as a trusted global player.

In her 2025-26 Budget speech, the minister had announced that a high-level committee for regulatory reforms will be set up for a review of all non-financial sector regulations, certifications, licences, and permissions. “The committee will be expected to 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,” said the Budget speech.

Pushing reforms

Sitharaman said decriminalisation of business-related laws reduces the legal risks, allowing industries to operate with greater confidence. Over 42,000 compliance requirements have already been removed, and over 3,700 legal provisions have been decriminalised since 2014. In the Jan Vishwas Act 2023, more than 180 legal provisions were decriminalised. “Our government will now bring up the Jan Vishwas Bill 2.0 to decriminalise more than 100 provisions in various laws. It will further simplify processes for businesses,” Sitharaman said.

She said the government’s “unprecedented” push for infrastructure development helps create jobs, strengthen industries, and also lays the foundation for greater private sector participation in India’s growth story. “The pathway for reforms is complemented by the government’s unwavering focus on capital expenditure as a driver of economic growth,” Sitharaman said.

For the next fiscal, the government has proposed effective capex at ₹15.48 lakh crore, which is 4.3 per cent of the GDP. Of this, ₹11.21 lakh crore is allocated as core capital expenditure by the Centre, which is 3.1 per cent of the GDP.