India has witnessed a 27% increase in new business registrations, rising from 1.55 lakh in 2020–21 to 1.98 lakh in the first 10 months of 2025–26 as of February 3, 2026. This growth is attributed to economic reforms that have improved the ease of doing business in the country. The Union Budget 2026–27 has introduced measures like digital trade facilitation, tax certainty, and a favorable tax regime to further enhance the business environment.
Institutional reforms such as Start-up India and Credit Guarantee Scheme, along with digital credit assessment models, are fostering a transparent and tech-friendly ecosystem for investors. Regulatory reforms like the Jan Vishwas Act and IBC are focusing on capacity-building and trust-based governance. India boasts over 2.16 lakh DPIIT-recognized startups as of February 2026, solidifying its position as one of the world’s largest startup ecosystems.
The RBI’s Business Expectations Index has consistently shown positive sentiment regarding future output, employment, and investment. This reflects a business environment where firms are optimistic about growth prospects. India’s reform-driven growth strategy emphasizes strengthening entrepreneurship, enhancing access to finance, and modernizing regulatory frameworks to attract investments and improve the ease of doing business.
Over recent years, India has become an attractive destination for investments and business operations. The country’s growth strategy aims to deepen financial inclusion, boost innovation, and position India as a competitive global trade and investment hub. These efforts not only enhance the business environment but also accelerate MSME growth and align with national development priorities.
