Tripura tops India’s Business Reforms Deregulation 1.0 rankings in 2025, leading compliance reduction efforts. The Centre prepares Deregulation 2.0 with expanded reforms across education, land, health, and utilities to boost ease of doing business nationwide.
Tripura has emerged as the top-ranked state in India under Business Reforms Deregulation 1.0 in 2025, marking a significant milestone in the state’s efforts to improve the ease of doing business. The ranking was part of a comprehensive national assessment reviewed by the Prime Minister during the 5th Chief Secretaries’ Conference, held in New Delhi from December 26 to 28.
The evaluation places Tripura at the forefront of compliance reduction and regulatory simplification, underscoring its leadership in creating a business-friendly ecosystem. Odisha and Uttar Pradesh also performed strongly, jointly occupying positions within the top three states nationwide.
Deregulation 1.0, launched in January 2025, focused on simplifying compliances across critical sectors such as land, labour, building and construction, utilities, and permissions. The initiative aimed to remove outdated rules, reduce bureaucratic hurdles, and encourage faster investment decisions. Tripura’s consistent reforms, especially in land-use policies and permission systems, played a key role in securing the top rank.
Encouraged by the success of Phase I, the Union government is now preparing to roll out Deregulation 2.0 in 2026. The Cabinet Secretariat, under the leadership of Cabinet Secretary T.V. Somanathan, has identified 30 new priority areas for major compliance reduction across seven sectors and departments.
Among these, Education and Utilities & Permissions have received the highest attention, with five priority areas each. Significantly, Education, Environment, and Health have been brought under the deregulation framework for the first time, indicating a broader and more inclusive reform agenda.
Land-related compliances continue to pose challenges and account for three priority areas, while Environment, Building & Construction, and Health feature two focus areas each. Although the implementation of new labour codes has already eased several regulatory burdens, at least one labour-related reform area has been retained for further streamlining.
In addition to the 23 core priority areas, the Centre has outlined three overarching priorities and seven optional reform areas that states are encouraged to adopt. Deregulation 2.0 is expected to deepen reforms and build on the momentum created during the first phase.
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State-wise performance shows Haryana, Madhya Pradesh, Meghalaya, and Rajasthan among the top 12 performers. Sixteen states and Union Territories have been categorised as “moving forward,” while eight are still lagging in implementation. Poll-bound West Bengal ranks last at 20, while Delhi stands at 18.
The assessment also highlighted several best practices. Andhra Pradesh and Uttarakhand were commended for eliminating land conversion requirements. Tripura and Odisha were recognised for removing restrictive negative lists for mixed land use, while Haryana earned praise for liberalising building bye-laws.
With its top ranking, Tripura has set a benchmark for regulatory reform, positioning itself as a model state for ease of doing business in India.
