The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has reduced 47,957 compliance requirements to simplify business processes and promote ‘Ease of Doing Business’ in the country. Additionally, the system for digital approvals for businesses has also been expanded.
According to the data, the DPIIT has recognized 2,50,046 startups, which have generated over 25.42 lakh jobs across more than 770 districts and 56 industries. Approximately 52% of these recognized startups are based in non-metro cities, while 48% have at least one women director.
India has witnessed a substantial rise in foreign investment over the past 12 years, attracting a cumulative USD 843 billion in Foreign Direct Investment (FDI) between FY 2014–15 and FY 2025–26. This represents a 169% increase compared with the USD 313 billion recorded during the preceding 12-year period. The country also registered its highest-ever annual FDI inflow of USD 94.53 billion in FY 2025–26, highlighting the growing scale of foreign investment in the Indian economy.
Startup Funding Expands as Regulatory Burden Eases
The Startup India Seed Fund Scheme has approved ₹775.67 crore for 4,194 startups through 244 incubators. Meanwhile, SIDBI has committed ₹12,623 crore to 166 AIFs, which have invested ₹28,254 crore in 1,475 startups.
Under the Credit Guarantee Scheme, 532 loans worth ₹1,662.71 crore have been guaranteed, supporting startups employing over 41,600 people. The guarantee limit has also doubled to ₹20 crore per borrower, with annual fees cut to 1% for 27 champion sectors.
The government has reduced 47,957 compliance requirements through digitisation, simplification, decriminalisation and elimination. The Jan Vishwas Acts have decriminalised 900 provisions, while 29 Central labour laws have been consolidated into four Labour Codes. The validity of PESO licences has also been extended from five to ten years.
National Single Window System Simplifies Business Approvals
The National Single Window System (NSWS) has received over 15.49 lakh applications, registered 5.76 lakh businesses and issued more than 8.5 lakh approvals. It offers 3,779 Central and State services and is integrated with 34 States and Union Territories and 32 Central Ministries and Departments.
Its ‘Know Your Approvals’ module helps businesses identify the permits applicable to their operations. The platform supports 22 Indian languages, and its automated data-sharing process is designed to reduce repetitive paperwork and unnecessary interference from government departments. The government has expanded the automatic route for Foreign Direct Investment (FDI) across 17 sectors. Furthermore, the limits on foreign investment in selected sectors—including defence and insurance have been revised to simplify the investment process.
The objective of these reforms is to reduce administrative hurdles, improve regulatory transparency, and facilitate business expansion and investment across India.
(PIB)
