New Delhi: The Union Budget 2026–27 reinforced Ease of Doing Business as a central pillar of India’s growth strategy, with measures focused on digitisation, tax certainty, compliance reduction and trust-based regulation.
The Budget emphasised digital trade facilitation through a single, interconnected customs clearance window and the rollout of a Customs Integrated System within two years. It also proposed reforms to improve investor access, reduce litigation and simplify regulatory processes across sectors.
The government said sustained Ease of Doing Business reforms had strengthened investor confidence over the past decade. Between 2014 and 2025, India attracted USD 748.38 billion in foreign direct investment. During the same period, active registered companies rose by about 27% to nearly 1.98 lakh.
The Budget proposed making Minimum Alternate Tax a final tax at a reduced rate of 14%. It said the move would enhance certainty and cut disputes. It also proposed allowing set-off of MAT credit in the new tax regime and exempting certain non-residents paying presumptive tax.
Ease of Doing Business reforms focus on trade, tax and trust
To facilitate trade, the Budget announced immediate customs clearance for goods without compliance requirements after online registration and duty payment. It also expanded non-intrusive scanning using advanced imaging and AI to assess risk at major ports.
For investment access, the government proposed raising portfolio investment limits for Persons Resident Outside India under the Portfolio Investment Scheme. The move aimed to deepen market liquidity and attract global capital.
The Budget outlined steps to reduce penalties and prosecutions. These included integrated assessment orders, lower pre-deposit requirements during appeals, decriminalisation of minor offences and graded penalties linked to the scale of violations.
Trust-based customs systems formed another focus area. The government extended duty deferral periods for authorised economic operators and lengthened the validity of advance rulings from three to five years. It also said trusted importers would face minimal verification, enabling factory-to-ship clearance.
Officials said Ease of Doing Business reforms would continue under initiatives such as the National Single Window System, which has issued over 8.29 lakh approvals so far. State-led innovations, labour code consolidation and GST simplification were also cited as key drivers of improved business efficiency.
