Chhattisgarh Enacts Ease of Doing Business Act to Benefit 15 Lakh MSMEs

Chhattisgarh has emerged as the first state in India to enact the Ease of Doing Business Act. According to Chief Minister Vishnu Deo Sai, the state is positioning itself as a competitive destination for industry, technology, and next-generation manufacturing through this legislation, alongside more than 450 business reforms and investment proposals worth over ₹8 lakh crore.

The Chhattisgarh Ease of Doing Business Act introduces a transparent, risk-based system designed to reduce unnecessary inspections, repeated approvals, and lengthy procedures. Under the framework, low-risk businesses can opt for self-certification, while medium-risk businesses may obtain certification from authorized third-party professionals. The Act replaces routine annual renewal requirements with risk-based compliance for eligible services. Low- and medium-risk approvals can remain valid for the lifetime of the business, subject to prescribed compliance and change-reporting requirements, while high-risk establishments remain subject to technical assessments and inspections.

Initially covering 43 services across eight departments, the framework includes deemed approval if an eligible application is not decided within the prescribed timeline. The state government estimates that these measures will benefit more than 15 lakh micro, small, and medium enterprises (MSMEs).

To address historical bottlenecks such as delays in land allotment and clearances, the government has instituted specific timelines. Land options and incentive details are provided within seven days, site visits are arranged within 15 days, and digital land allotment is targeted within 45 days, with eligible incentives processed within 28 days. Around 1,548 acres have been allotted digitally, alongside nearly 2.5 lakh mutations and 8,948 land-use changes processed online over a six-month period.

Digital governance is being managed through the state's single-window system, OneClick, which offers more than 200 services across 25 departments. The platform facilitates applications, approvals, real-time tracking, automatic escalation of delayed applications, and geo-tagged inspections.

Since the Industrial Development Policy 2024–30 officially came into effect in November 2024, the state has received investment proposals worth over ₹8 lakh crore, with the potential to generate more than 1.6 lakh jobs. Nearly half of these projects are in priority sectors such as electronics, pharmaceuticals, textiles, food processing, and tourism. The state reports that approximately 55 percent of these projects have entered the grounding stage.

To support workforce development and entrepreneurship, the state has launched the ₹500-crore Mukhyamantri Startup and NIPUN Mission. This initiative includes establishing entrepreneurship centres in all 33 districts, along with 100 emerging-technology laboratories and five Centres of Excellence focused on skill development in semiconductors, artificial intelligence, and pharmaceuticals.

The Industrial Development Policy 2024–30 also extends special incentives to entrepreneurs from specific categories, including women, persons with disabilities, retired Agniveers, and individuals affected by Naxalism, as well as units located in the Bastar and Surguja regions. Data from the state indicates that the number of industrial units from Bastar, Sukma, Kondagaon, and Dantewada districts seeking incentives has risen by 102 percent.

"The legislative framework introduced by Chhattisgarh marks a progressive shift in regional industrial policy by directly addressing administrative bottlenecks for MSMEs. By implementing a risk-based compliance model, digital land allotments, and time-bound single-window clearances, the state is lowering entry barriers for entrepreneurs. For the broader startup and business ecosystem, predictable regulatory processes and transparent timelines are critical drivers that reduce operational friction and accelerate the grounding of capital investments." — Dr. Shishir Gupta, Founder & CEO, StartupLanes