Jan Vishwas Bill 2.0 – Strengthening Business Reforms in India

Context

• India Business Corruption Survey 2024 revealed that 66% of businesses admitted to paying bribes, with 54% stating coercion for approvals.
• Regulatory complexity impacts FDI inflows and Ease of Doing Business rankings.
• Jan Vishwas 2.0, announced in Union Budget 2025, builds on Jan Vishwas Act 2023, which decriminalized 180 provisions across 42 laws.
• Aims to create a trust-based regulatory environment and simplify compliance.

Key Features of Jan Vishwas 2.0

• Decriminalization of 100+ provisions in taxation, corporate, labour, and environmental laws.
• Shift from punitive measures to compliance-based governance.
• Unification of business identifiers – reducing paperwork and delays.
• Digi Locker for Businesses – a secure repository for compliance documents.
• High-Level Committee to recommend further regulatory simplifications.

Why is it Needed?

• 9,420 compliance updates annually create inefficiencies and corruption opportunities.
• 4 out of 5 global investors cite corruption as a barrier to investment.
• Simplifying processes will boost domestic entrepreneurship and ease foreign investments.

Expected Impacts

• Enhances Ease of Doing Business ranking.
• Reduces bribery and bureaucratic delays.
• Encourages investment and innovation.

Challenges & Way Forward

• Scope is limited – 20,000+ imprisonment clauses still exist.
• Slow implementation of earlier reforms.
• Regulatory loopholes may still allow corruption.
• Need for predictable compliance updates, digital-first systems, and faster labour law enforcement.

Conclusion

• Jan Vishwas 2.0 is a significant step toward regulatory reforms but needs broader measures to create a truly business-friendly ecosystem.