The Government has put in place a policy framework for Foreign Direct Investment (FDI) that is transparent, predictable, and easily comprehensible. This framework is embodied in the Consolidated FDI Policy circular dated 15.10.2020 as amended from time to time (FDI Policy).
The Government will also be bringing up the Jan Vishwas 2.0 bill, aiming to further improve the business environment. In the Union Budget 2025, it was announced that a High-Level Committee for Regulatory Reforms will be set up to strengthen trust-based economic governance and take transformational measures to enhance EoDB, especially in matters of inspections and compliances.
To further strengthen a seamless business regulatory framework across the country and nudge states to promote healthy competition to attract investment including FDI, various initiatives are being undertaken. The Government of India released Business Reforms Action Plan (BRAP) 2024 rankings and Logistics Ease Across Different States (LEADS) 2024 report to communicate to potential investors examples of a positive business ecosystem as well as logistics performance undertaken by various States and UTs. Further in the Union Budget 2025 it was announced that an Investment Friendliness Index of States will be launched in 2025 to further the spirit of competitive cooperative federalism.
