Union Budget 2025: FM Nirmala Sitharaman proposes four major regulatory reforms

While Finance Minister Nirmala Sitharaman’s big announcement in her eighth budget pertained to the tax sops, the biggest one in the Modi regime, she also laid emphasis on taking forward the reforms initiative.

In her Budget speech, the Finance Minister said that her government was determined to ensure that the regulations must keep up with technological innovations and global policy developments. To develop a modern, flexible, people-friendly, and trust-based regulatory framework, Sitharaman proposed four specific measures.

She announced the setting up of a ‘high-level committee for regulatory reforms’ for review of all non-financial sector regulations, certifications, licenses, and permissions. 

With a tenure of one year, the high-level panel’s objective would be to enhance ‘ease of doing business’, especially in matters of inspections and compliances. States will be encouraged to join in this endeavour.  

To ensure healthy competition among states, the government will also launch the ‘Investment Friendliness Index of States.’ 

Sitharaman said the Index will be launched in 2025 to further the spirit of competitive cooperative federalism.

The Finance Minister announced the government will bring up the Jan Vishwas Bill 2.0 to decriminalize more than 100 provisions in various laws.

In the Jan Vishwas Act 2023, more than 180 legal provisions were decriminalized. This was done to ensure ease of doing business and creating a trustworthy environment.

In the last ten years in several aspects, including financial and non-financial, our government has demonstrated a steadfast commitment to ‘Ease of Doing Business’, the Union Finance Minister said.

Sitharaman said under the Financial Stability and Development Council, a mechanism will be set up to evaluate the impact of the current financial regulations and subsidiary instructions. It will also formulate a framework to enhance their responsiveness and development of the financial sector.