In a significant achievement for its economic governance, Uttar Pradesh has clinched the top position in India's national ranking for implementing crucial deregulation reforms. The state's performance, as highlighted in the central government's Deregulation 1.0 report, marks it as the nation's leader in simplifying business operations and fostering a more attractive investment climate.
A Comprehensive Sweep of Priority Reforms
Uttar Pradesh distinguished itself by becoming the first state in the country to fully implement all 23 priority reform areas identified by the Government of India. This comprehensive effort spanned five critical sectors: land, building and construction, labour, utilities, and permissions. The state's push also included broader regulatory and process-related changes aimed at policy simplification and rationalisation.
Officials have stated that this top ranking is a direct result of Uttar Pradesh's sustained drive to create a more transparent, efficient, and investor-friendly business environment. The reforms are designed to reduce red tape, digitise processes, and minimise the compliance burden on enterprises, especially smaller ones.
Key Sectoral Reforms That Made the Difference
The state's success was built on a series of targeted interventions across multiple domains. In land-related reforms, Uttar Pradesh adopted a flexible zoning framework to permit mixed-use development and streamlined the land-use change process through digital means. It also rationalised minimum road width norms for industries in rural areas.
A major step was the integration of a GIS-based land bank of available industrial plots with the national India Industrial Land Bank (IILB). This integration provides investors with seamless, real-time access to information on available land, significantly speeding up project planning.
Streamlining Construction and Labour Regulations
In the building and construction sector, amendments to regulations helped reduce land loss on industrial and commercial plots. The state expanded the role of empanelled third-party agencies in building approvals, joint inspections, and fire safety checks. The online issuance of occupancy and completion certificates played a pivotal role in slashing approval timelines.
Labour reforms formed another major pillar of Uttar Pradesh's strategy. The state removed restrictions on women working in hazardous industries and permitted night-time employment for women across factories, shops, and commercial establishments. It rationalised working hour limits and raised the compliance threshold under the Shops and Establishments Act to 20 workers or more, a move that lightens the regulatory load on numerous small businesses.
Digital Push for Faster Approvals and Connections
Embracing technology was central to the reform agenda. Uttar Pradesh enabled third-party certification for environmental consents and streamlined the approval processes for factory and trade licences through online systems. Furthermore, the state expedited the provision of essential utilities like electricity and water connections by leveraging integrated digital platforms.
This holistic approach, covering land access, construction permits, labour laws, and utility connections, has positioned Uttar Pradesh as the frontrunner in India's ease of doing business landscape. The Deregulation 1.0 report's findings underscore the state's transformation into a prime destination for investors seeking a supportive and simplified regulatory regime.
