India has made bold moves—from Startup India to DPIIT’s reform push. But what do founders actually experience on the ground?
This article breaks down the gap between intention and implementation, and what it will really take for entrepreneurs—especially from Tier 2 and 3 India—to build with ease, clarity, and confidence.
Featuring insights from: Startup India, DPIIT, NITI Aayog, and on-the-ground realities from India’s growing startup ecosystem.
Beyond the Rankings: What ‘Ease of Doing Business’ Really Means in India
India’s jump from 142nd to 63rd in the World Bank’s Ease of Doing Business rankings between 2014 and 2019 made headlines.
But for thousands of entrepreneurs, the story doesn’t end with a ranking—it begins with the daily reality of building a business in India.
This article explores what “ease of doing business” actually, feels like on the ground—from startup founders navigating regulations to policymakers driving change and investors looking in.
1. Policy Wins: The Reforms That Made a Difference
India has made major moves in the past decade to make doing business easier. Some of the standout efforts include:
- Startup India initiative: Over 1.57 lakh startups recognized by DPIIT (as of Dec 2024)
- Simplification of compliance: More than 39,000 compliances reduced, and 3,400+ provisions decriminalized
- Online systems: A move toward digitizing company registration, tax filings, and license applications
- State-level competition: With the Business Reform Action Plan, states now compete to improve local business environments
These changes have genuinely made it easier to start a business on paper. But is starting the same as scaling or sustaining?
2. What Founders Still Struggle With
For early-stage entrepreneurs, especially those outside major metros, the biggest hurdles are no longer just paperwork. They include:
- Access to capital: Despite India raising over $147 billion in startup funding (2016–2024), early-stage and Tier 2/3 startups find it tough to secure funding
- Fragmented and outdated laws: Different departments ask for different approvals, with overlapping rules
- Lack of clarity: Many first-time founders are unsure which laws apply to them, and there’s no single place to find out
- Infrastructure gaps: Reliable power, internet, and transport are still issues in many smaller cities
- Red tape that persists in practice: Despite digital systems, offline verification and middlemen are still common in some sectors
3. What the World Wants (and Watches)
Global investors and multinationals care about India’s EoDB story—but for them, it’s about much more than registration speed. They look for:
- Policy stability – Will tax laws, FDI rules or startup incentives change overnight?
- Legal protection – Can contracts be enforced without years in court?
- Digital readiness – Are online systems actually usable, scalable, and secure?
- Logistics and supply chains – Is the ecosystem ready for high-growth scaling?
- Talent availability – Can they hire the right talent and build teams fast?
India has done well in global innovation rankings, moving up to 39th in the Global Innovation Index (from 81st in 2015). But consistency, not just ranking spikes, is what the world watches.
4. What Entrepreneurs Really Want
Founders across India—those building in edtech, D2C, agri-tech, fintech—are asking for:
- A single dashboard to track all compliances
- Predictable timelines for approvals and licenses
- No harassment or over-inspections during early operations
- Faster access to credit, especially unsecured loans
- Simple rules for exiting a business—not just starting one
- A culture of trust between government and entrepreneur
They don’t want exemptions—they want clarity. They’re not afraid of regulation—they want it to be logical and updated.
5. Policy vs Practice: Bridging the Gap
Here’s the truth: India has great intentions on paper, and often strong policies at the centre. But execution at the last mile—local offices, state departments, inspectors—doesn’t always keep up.
That’s where frustration builds:
- Digital filing + in-person verification = extra time
- Online approval + local corruption = hidden costs
- Fast startup registration + no post-incorporation guidance = confusion
Bridging this “implementation gap” is where India’s real EoDB story will be written.
From Paper to Practice
India has done a remarkable job making it easier to start up. That deserves recognition.
But the next chapter is about:
- Making growth easier
- Making compliance smarter
- Making closure less painful
- Making systems trustworthy and self-service
That’s what ease of doing business should mean—not just faster forms, but freedom from fear and friction.
And when a founder from a small town can register, raise, run, and exit a business with confidence—without a single favour or workaround—that’s when we’ll know we’ve truly arrived.
Sources
· Startup India 9-Year Impact Report
· DPIIT: Ease of Doing Business Reforms
· India Innovation Index – NITI Aayog
· World Bank Doing Business Archives
· Deccan Herald: Startup Funding in India