India Targets Top States for Ease of Doing Business Reforms

As of August 26th, 2025, the Indian government has been working on a new model to roll out ease of doing business measures, with a particular focus on five key states: Gujarat, Maharashtra, Tamil Nadu, Karnataka, and Delhi. These states have been selected due to their strong industrial base, proactive governance, and track record in implementing business-friendly policies.

The next set of reforms will be introduced in these states, serving as testing grounds for measures aimed at further reducing compliance burdens, speeding up clearances, and strengthening investor confidence. The emphasis on these select states is to create and showcase successful models that can then be replicated across the country.

The plans come at a time when India is facing strained relations with its largest trading partner, the United States, creating an urgent need to revitalize domestic industry and attract foreign direct investment (FDI). The government has set a target of securing $100 billion in FDI in the current fiscal year, and these state-level pilots, supported and benchmarked by the Centre, could serve as templates for wider adoption across the country.