The Department for Promotion of Industry and Internal Trade (DPIIT), the key agency overseeing Ease of Doing Business (EoDB) initiatives, is actively working towards creating a favourable business environment in India. A series of impactful measures have been implemented by various Ministries, Departments, and States/Union Territories to streamline and enhance EoDB.
In a significant move towards fostering a more business-friendly environment, the recent enactment of The Jan Vishwas (Amendment of Provisions) Act, 2023, has effectively decriminalised 183 provisions across 42 Central Acts administered by 19 Ministries/Departments. This legislation marks a crucial step in simplifying legal complexities for businesses and citizens alike, aiming to redefine the landscape of doing business in India. The Jan Vishwas Act, introduced to ease the burden of legal intricacies, untangles the web of legal provisions, creating a more conducive atmosphere for economic activities.
What is Jan Vishwas (Amendments of Provisions) Act 2023
The Jan Vishwas (Amendment of Provisions) Bill, 2023, recently passed in the Lok Sabha, marks a significant move to improve the ease of living and promote a business-friendly environment.
The Jan Vishwas Bill, presented during the Lok Sabha’s monsoon session, proposes changes to 183 provisions in 42 Central Acts managed by 19 Ministries/Departments. Spanning across various sectors, including environment, agriculture, media, industry, trade, information technology, copyright, motor vehicles, cinematography, and food safety, the bill’s core aim is to decriminalize minor offenses without implications for public interest or national security. It advocates for substituting criminal penalties with civil or administrative actions.
The Jan Vishwas (Amendment of Provisions) Bill, introduced on December 22, 2022, aims to rationalize criminal provisions, alleviate pressure on the justice system, address technical defaults with proportional penalties, and strike a balanced approach. The goal is to facilitate business growth by eliminating barriers and creating a conducive legal environment for development. Key features of the Bill include the removal of imprisonment clauses and fines in some provisions, transforming them into penalties determined by adjudicating officers appointed by the respective Ministries/Departments. Additionally, the Bill introduces compounding of offenses, allowing offenders to settle cases by paying a specified amount without undergoing a court trial. Periodic revisions of fines and penalties every three years, with a 10% increase in the minimum amount for various offenses, are also envisaged.
The Jan Vishwas Bill casts its influence over several key laws, including the Indian Forest Act, 1927; the Air (Prevention and Control of Pollution) Act, 1981; the Information Technology Act, 2000; the Environment (Protection) Act, 1986; the Copyright Act, 1957; the Patents Act, 1970; the Railways Act, 1989; and the Food Safety and Standards Act, 2006. As it traverses through the legislative landscape, the Bill sets the stage for a nuanced recalibration of the legal framework, navigating the delicate balance between decriminalization and effective governance.
- Streamlining Processes: DPIIT is dedicated to reducing the compliance burden on businesses and citizens by simplifying, rationalising, digitising, and decriminalising interactions between the government, businesses and citizens.
- Business Reform Action Plan (BRAP): States and Union Territories are assessed through an annual exercise known as the Business Reform Action Plan, which evaluates their implementation of designated reform parameters.
- National Single Window System (NSWS): DPIIT has introduced the NSWS, a unified platform providing a one-stop solution for investor-related approvals and services, simplifying the process for businesses.
India’s remarkable progress in the World Bank’s Doing Business Report (DBR) is noteworthy. In the 2020 DBR, India held the 63rd position, showcasing a significant improvement from its 142nd rank in 2014. This remarkable jump of 79 ranks within five years reflects India’s commitment to fostering a more business-friendly environment.