India’s EODB Journey: Key Reforms Every Business Should Know

Over the past five years, India has been steadily transforming its regulatory landscape to make doing business simpler, faster, and more transparent. Reforms such as streamlined tax systems, digitised processes, and improved infrastructure have reduced bureaucratic hurdles and simpified compliance. These changes have not only improved Ease of Doing Business in India but also attracted foreign investment, spurred entrepreneurship and encouraged innovation. 

Here’s a look at some of the key EODB reforms that are reshaping the way businesses operate written by Mr. Rishi Agrawal CEO and Co founder of Teamlease Regtech

1. Introduction of Draft Data Protection (DPDPA) Rules:-  The government released the draft Data Protection (DPDPA) rules to strengthen data governance and privacy standards. By providing clarity on data handling, storage, and consent mechanisms, these rules aim to build trust for businesses and consumers, improve regulatory compliance, and create a more predictable environment for digital enterprises.

2. Decriminalisation of Business Laws through Jan Vishwas:-  Through a couple of rounds of the Jan Vishwas Act, the government has decriminalized hundreds of minor procedural offences, transforming them into civil penalties to ease the compliance burden.

3. Introduction of EntityLocker and PAN 2.0:- Initiatives like EntityLocker and PAN 2.0 aim to enhance digital identity management for businesses. EntityLocker provides a secure repository for company documents, while PAN 2.0 streamlines business identification and verification. These digital reforms reduce paperwork, improve transparency, and make business operations more efficient.

4. Labour Law Consolidation into Four Codes:- The 29 central labour acts were subsumed into four comprehensive codes. This reform streamlines employee-related regulations, making it easier for companies, especially MSMEs and startups, to operate efficiently and focus on growth.

5. RBI Compliance Monitoring Directive :- Over the past five years, the RBI has introduced multiple measures to strengthen compliance for regulated entities, including the Compliance Monitoring Directive, digitisation of regulatory filings, RegTech guidelines, and streamlined reporting requirements. Collectively, these reforms have reduced procedural delays, enhanced transparency, and encouraged robust compliance systems, making regulatory interactions more efficient and business-friendly.

6. Production-Linked Incentive (PLI) Scheme:- It was launched by the Government as a strategic initiative to boost domestic manufacturing capabilities and reduce import dependency. Initially targeting three sectors—mobile and allied component manufacturing, electrical component manufacturing, and medical device- the scheme has since expanded to cover 14 strategic sectors, including pharmaceuticals, automobiles, textiles, white goods, and advanced chemistry cell batteries.

7. Scale-Based Framework for NBFCs:- The Reserve Bank of India (RBI) introduced the Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies (NBFCs). This revolutionary regulatory approach replaced the earlier binary classification of NBFCs into systemically important and non-systemically important categories, instead creating a four-tier pyramid structure based on size, activities, and systemic risk. The framework categorises NBFCs into Base Layer (assets below ₹1,000 crore), Middle Layer (deposit-taking NBFCs and non-deposit taking NBFCs above ₹1,000 crore), Upper Layer (identified by RBI based on risk parameters with top 10 NBFCs by asset size), and Top Layer (for entities posing substantial systemic risk). The SBR framework enables proportionate regulation where regulatory intensity increases as one moves up the pyramid, ensuring that smaller NBFCs operate with lighter compliance burdens while larger, systemically important institutions face stricter oversight including higher capital adequacy ratios, enhanced governance standards, and robust risk management practices. 

These reforms have transformed India’s business environment. While some directives, like the RBI compliance monitoring mandate, are mandatory, all organisations large or small can benefit from adopting RegTech proactively. Hence, leveraging technology ensures smoother compliance, builds a strong culture of transparency, and helps businesses stay future-ready in an evolving regulatory landscape.