India Streamlines Business Rules to Boost Manufacturing

In November 2025, a quiet but sweeping transformation is underway in India's industrial landscape. Nudged by the central government, many state administrations have been discarding outdated land use rules and streamlining compliance checks to make it easier to start businesses and manufacture goods.

The reforms, identified by a task force led by the Cabinet Secretary, have been swiftly implemented across several states. Madhya Pradesh, Andhra Pradesh, and Tripura have been at the forefront of this effort, with most states having completed over 50% of the 23 key reforms outlined.

The changes include extending working hours for shops and establishments, 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. These practical measures have significantly increased the availability of land for manufacturing units.

Driving this transformation is a deregulation cell within the Cabinet Secretariat, which is coordinating with states and tracking progress in real-time. The focus has shifted to addressing operational frictions at the state level, after most major reforms were carried out at the central level.

These reforms, first highlighted in the January 2025 Economic Survey, aim to unblock the final mile of India's investment ecosystem. By streamlining regulations and reducing the cost of business decisions, the government hopes to further boost the country's industrial growth and competitiveness.