India has made significant strides in enhancing its business regulatory environment over the past 12 years, transitioning from a compliance-heavy approach to a facilitation-driven system. This shift has resulted in the country climbing the ranks in global assessments on investor confidence and ease of doing business. Notably, India’s position improved from 142 in 2014 to 63 in 2019, a remarkable advancement of 79 positions in just five years, as per the Doing Business Report 2020 by the World Bank.
The IMD World Competitiveness Ranking 2025, which evaluates economic performance, government efficiency, business operations, and infrastructure development, also recognized India’s progress. India’s ranking moved from 43 in 2021 to 41 in 2025, indicating a more robust business environment, enhanced governance, and improved digital and regulatory reforms, according to an official factsheet.
Furthermore, India has excelled in the World Bank’s GovTech Maturity Index, securing a place in Group A in 2020, 2022, and 2025. This classification is reserved for countries showcasing advanced and innovative practices in core government systems, public service delivery, digital citizen engagement, and govtech enablers. The United Nations’ E-Government Survey has also lauded India’s digital government landscape, highlighting the country’s high scores in online services, telecommunication infrastructure, and human capital indices.
The government’s continuous efforts to simplify regulations and streamline procedures have been pivotal in driving these improvements. By reducing compliance burdens throughout the business lifecycle and implementing reforms from registration to insolvency resolution, India is transforming its business landscape, making it more entrepreneur-friendly both domestically and internationally.
The Startup India initiative, aimed at fostering entrepreneurship and building a thriving startup ecosystem, has played a significant role in this transformation. Initiatives like the Seed Fund, Fund of Funds, investor connect portal, and credit guarantee scheme have supported the growth of startups in India, leading to a substantial increase in job creation and entrepreneurial opportunities.
