Jan Vishwas Bill: Decriminalisation & Ease of Doing Business
Context : The column discusses India’s ongoing transition away from the legacy of the “License Raj”—an era characterized by excessive regulation, bureaucratic control, and criminal penalties for minor violations. The passage of the Jan Vishwas (Amendment of Provisions) Bill is highlighted as a pivotal legislative step in this journey, focusing on decriminalization to improve the Ease of Doing Business and foster trust between the state and the entrepreneur.
Jan Vishwas and the End of India’s Licence Raj Mindset
For decades, India’s economic story has been shaped not just by markets and reforms, but by a regulatory mindset inherited from the Licence Raj. Even after liberalisation, many of its features—excessive permissions, criminal penalties for minor lapses, and deep mistrust of businesses—continue to affect entrepreneurship.
The Jan Vishwas Bill, 2023 is a significant attempt to change this legacy. More importantly, it signals a broader shift in how the state views regulation, compliance, and enterprise.
The Lingering Legacy of the License Raj
The License Raj was built on the idea that economic activity must be tightly controlled through licenses, approvals, and inspections. While this system was dismantled in theory, its spirit still survives in India’s regulatory framework.
One of its most damaging outcomes is the criminalization of routine business errors. Minor procedural lapses—often unintentional or administrative—can still attract criminal charges, jail terms, or severe penalties. Instead of correcting behavior, this approach creates fear.
The compliance burden is another enduring problem. Businesses, especially MSMEs, must navigate a complex web of central and state laws, many of which overlap or contradict each other. Time and capital that should be spent on innovation or expansion are instead consumed by paperwork and regulatory navigation.
Over time, this has led to a deeper issue: erosion of trust. When entrepreneurs are treated as potential violators rather than partners in growth, the relationship between the state and the private sector becomes adversarial rather than collaborative.
Why the Jan Vishwas Bill Is a Turning Point
The Jan Vishwas Bill represents a conscious effort to replace suspicion with trust in India’s regulatory ecosystem.
At its core, the Bill focuses on decriminalization. It removes criminal provisions for a large number of minor offences across several central laws related to environment, agriculture, industry, and finance. Instead of jail terms, it introduces monetary fines and civil penalties.
This shift brings in the principle of proportionality. Not every compliance failure is fraud or malice. By distinguishing between serious violations and minor lapses, Jan Vishwas acknowledges the realities of running a business.
From an economic perspective, this reform has an important signaling effect. Reduced risk of arbitrary criminal prosecution improves investor confidence, increases predictability, and strengthens India’s ease of doing business narrative. For both domestic entrepreneurs and global investors, this matters as much as tax rates or incentives.
What Jan Vishwas Does Not Solve—Yet
While the Jan Vishwas framework is necessary, it is not sufficient on its own.
India still needs a deeper compliance overhaul. The number of licenses, registrations, and approvals remains excessive. A risk-based, technology-enabled system—sometimes described as a “regulatory guillotine”—is essential to cut redundant rules and focus enforcement where it actually matters.
Judicial efficiency is another critical challenge. Decriminalization will ease pressure on lower courts, but business disputes related to contracts, recovery, and enforcement continue to take years. Without faster dispute resolution, the cost of doing business will remain high.
Equally important is the role of state governments. Many of the most outdated and restrictive regulations exist at the state level. Unless states adopt the spirit of Jan Vishwas through similar decriminalization and simplification efforts, the reform’s impact will be uneven across India.
Beyond Law: The Cultural Shift Jan Vishwas Demands
The real success of Jan Vishwas will not be measured by how many clauses are amended, but by whether it triggers a change in governance culture.
A modern economy requires regulators who see businesses as wealth creators and employment generators, not default offenders. When trust replaces fear, compliance improves naturally, innovation flourishes, and growth becomes sustainable.
Jan Vishwas is a beginning. To truly leave the License Raj behind, India must extend this philosophy across laws, institutions, and administrative behavior. Only then can regulation become a tool for enabling growth rather than restraining it.
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The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH
