CII Proposes 10-Point Reform Agenda to Enhance Ease of Doing Business Ahead of Budget 2025
The Confederation of Indian Industry (CII) has put forward a 10-point reform agenda to the central government in anticipation of the 2025 Budget, with the goal of further improving the Ease of Doing Business (EoDB) in India.
The industry body has called for a more streamlined and transparent regulatory framework to support businesses, suggesting that all regulatory approvals—spanning central, state, and local levels—should be mandatorily processed through the National Single Window System (NSWS). CII believes this will significantly enhance transparency and expedite the approval process. To implement this, the first phase should include all central ministries within the next six months, followed by a phased inclusion of states. The body further suggested that a dedicated budget be allocated to incentivize states to transition fully to the platform.
The CII highlighted that as global competition intensifies and geopolitical conditions evolve rapidly, improving the domestic business environment must be prioritized. While India has made significant strides in enhancing its business climate over the past decade, the industry body emphasized the need to keep up the momentum, particularly in areas like simplifying regulatory frameworks and reducing compliance burdens.
Chandrajit Banerjee, Director General of CII, stressed that simplifying regulatory procedures and reducing compliance burdens should remain a key focus for the country in the years to come. He mentioned that sectors dealing with land, labor, dispute resolution, tax payments, and environmental compliance have substantial potential for simplification, which is essential for boosting competitiveness, fostering economic growth, and generating employment opportunities.
In addition to these suggestions, CII recommended the enactment of a law mandating public authorities to provide services within a fixed time frame and establish a mechanism for grievance redressal. The law should also include provisions for deemed approval if the prescribed timelines are exceeded.
Further, CII urged the government to expedite dispute resolution processes by enhancing court capacities and increasing reliance on Alternative Dispute Resolution (ADR) mechanisms. To tackle the issue of case backlog, the body proposed expanding the National Judicial Data Grid (NJDG) to include data from tribunals, which account for a significant portion of the country’s pending cases.
On the environmental front, CII called for a unified framework that consolidates various environmental compliance requirements into a single document. This would help streamline the process and reduce the burden on businesses. Additionally, the body suggested implementing a performance-based incentive system to recognize companies that exceed environmental standards. Such companies could be rewarded with expedited environmental and forest approvals and permits.
CII also highlighted the need for easier access to land for businesses. It recommended that states be incentivized to create an Online Integrated Land Authority that would streamline land bank management, digitize land records, and provide information on land disputes.
Other recommendations include reducing labor compliance complexities, enhancing trade facilitation, and minimizing tax-related litigation to further improve the business climate.
The 2025-26 Union Budget, scheduled for presentation on February 1, 2025, will mark Finance Minister Nirmala Sitharaman’s eighth budget. The industry and experts are keenly awaiting her announcements, which will outline the government’s economic plans for the remaining period of the Modi 3.0 administration. The upcoming budget holds particular significance against the backdrop of weaker-than-expected GDP growth and sluggish consumption in the economy.
India’s GDP grew by just 5.4 percent in the July-September quarter of 2024-25, which was notably lower than the Reserve Bank of India’s forecast of 7 percent. The previous quarter also saw slower growth than expected, raising concerns over the economic momentum.
The Finance Ministry has already begun the process of preparing the 2025-26 Budget, holding a series of pre-budget consultations with stakeholders, including industry leaders, economists, MSME representatives, and farmers’ associations. Finance Minister Sitharaman has personally conducted several rounds of discussions with various groups to gather insights for the upcoming budget.
