Imagine this: You're an entrepreneur, brimming with ideas, ready to build something amazing. But instead of encouragement, you're met with a labyrinth of red tape, approvals, and regulations. This was the reality for Indian entrepreneurs for decades, and it's a critical issue that demands our attention. The journey from the 'License Raj' to the 'Jan Vishwas' initiative is a vital step in freeing entrepreneurs, but is it enough? Let's dive in.
The challenges began in 1956, 1967, and 1976, when the Indian government inadvertently made the already tough path of entrepreneurship even harder. While the economic reforms of 1991 offered some relief, the full potential of deregulation remains untapped. If it were easy to start a business, wouldn't we see thriving entrepreneurial ecosystems everywhere?
The proposed 'Jan Vishwas Siddhant' (Trust-Based Deregulation) aims to dismantle the obstacles hindering India's entrepreneurs, mass prosperity, and global influence. Let's break down the six key issues:
Prior Approval: Remember the phrase, "Ijaazat hai" (Do we have permission)? For entrepreneurs, this often translates into navigating a minefield of licenses, NOCs, and permissions. Innovation, by its very nature, should be permissionless, yet businesses face a barrage of approvals. There are 500 approvals from central ministries and over 3,200 from state ministries.
Instrument Proliferation: Our legal system imagines laws and rules, but the reality is far more complex. The administrative state introduces a multitude of instruments – notifications, guidelines, circulars, etc. – each with potential penalties. Policymakers read laws in a linear fashion, but entrepreneurs must navigate a complex web of compliances, non-law instruments, and rules. It's estimated that entrepreneurs must navigate over 12,000 non-law instruments in addition to the 700 central and state Acts.
Compliance Blind Spot: Policymakers often lose sight of the cumulative compliance burden. A better approach is to focus on outcomes rather than micromanaging activities. Compliance, in this context, means an obligation enforced by law, not just a suggestion. In 2025, there were over 69,000 compliances. The goal is to streamline and simplify, but is it happening fast enough?
Enforcing the Unenforceable: The government can't realistically keep every promise it makes. Well-intentioned laws, like one inspector checking 3.3 lakh weight and measuring instruments, can lead to corruption and inefficiencies. The solution? The state should do less so it can do more, focusing on performance management and prioritizing clear, concise language.
Process as Punishment: The legal system can be a deterrent only if prosecutions and cases are actually filed. Many laws with jail provisions are rarely enforced, and are often used as threats. This clogs up the courts. For example, the criminalization of cheque bouncing has led to 43 lakh cases and a significant backlog. This creates an unjust environment for those who are innocent.
No Single Source of Truth: Transparency is essential. A single, comprehensive database for all laws, rules, and guidelines is needed. Entrepreneurs often fall prey to corruption because the information they need is unverifiable or incomplete. A live, digital database is the key to providing clarity.
The 'Jan Vishwas Siddhant' offers a transformative vision. It proposes converting licenses (outside of areas like national security) to self-registration. Inspections will be random, risk-based, and often conducted by third parties. Decriminalization, proportionate punishments, and regulatory changes with sufficient transition times are also key. Digitized filings and a single source of truth for all obligations are also part of the plan.
But here's where it gets controversial... This initiative aims to change the very nature of governance. It promises to shift from ruling to governing, from 'praja' (subjects) to 'nagrik' (citizens). It aims to foster non-farm job creation by recognizing that entrepreneurship is about testing ideas.
And this is the part most people miss... The reality is that entrepreneurs face numerous challenges: market risks, financing issues, employee management, and self-doubt. These are compounded by regulatory hurdles. As a result, out of 6.3 crore enterprises, only 30,000 have a paid-up capital of more than Rs 10 crore. This is a direct consequence of economic choices, not mere circumstances.
What do you think? Is the 'Jan Vishwas Siddhant' the right approach? Are there any potential downsides? Share your thoughts in the comments below! Remember, as the poet Sohanlal Dwivedi reminds us, "Koshish karnewaalon ki haar nahin hoti" (those who keep trying never lose).
