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The Indian economy continues to demonstrate impressive growth, but its complex and often archaic regulatory framework is taking a significant toll.

At every level of government—central, state, and municipal—a maze of regulations imposes a heavy compliance burden on businesses, driving up costs and reducing productivity. This not only hampers entrepreneurship but also discourages both domestic and foreign investment.

While governments at both the Centre and state levels have made efforts to improve the ease of doing business, progress remains uneven. Encouragingly, some recent reforms show promise. For instance, the Rajasthan government has eased restrictions, allowing women to work in commercial establishments during night hours. Delhi has eliminated the requirement for restaurants and hotels to obtain police certificates and licenses. Tamil Nadu has expanded its “white category” of industries, exempting them from obtaining consent from the state pollution board.

Despite these initiatives, much remains to be done. Key areas such as land acquisition, labour laws, utilities, and logistics continue to suffer from excessive regulation. A report by TeamLease earlier this year highlighted the staggering scale of the problem: businesses in India are subject to 1,536 laws and rules, 69,233 compliances, and 6,618 filings. Unsurprisingly, compliance requirements grow heavier as companies expand, often discouraging firms from scaling up.

Land regulations remain particularly contentious. According to the Economic Survey 2024–25, Indian factories lose a significant portion of land due to restrictive building standards, locking up productive assets and stifling job creation. The survey’s chapter titled “State of Regulation: Building Reforms for Jobs and Growth” underscores the urgency of deregulation, particularly at the state level.

As the survey rightly argues, “complementing the efforts of the Centre, states must pursue systematic deregulation as a policy priority.” This requires a careful evaluation of the costs and benefits of existing regulations, with an aim to reduce unnecessary barriers to business.

Greater economic freedom is essential to unlock India’s full potential and to realize the vision of a truly Swanirbhar Bharat, as envisaged by Prime Minister Narendra Modi.