Why Chhattisgarh is betting on trust-based governance

Ease of doing business is often measured by rankings, but its real test lies in the confidence it gives investors. With the enactment of the Chhattisgarh Ease of Doing Business Act, 2026, the state has gone beyond administrative reforms to make time-bound approvals and government accountability a matter of law

When a state gives legal backing to trust-based governance for businesses, it is not merely improving a process. It is changing the relationship between government and enterprise. With the Chhattisgarh Ease of Doing Business Act, 2026, passed by our Vidhan Sabha on July 16, Chhattisgarh has chosen to make ease of doing business a legal commitment, not an administrative promise. For investors, entrepreneurs and enterprises, this matters because certainty must be written into systems, timelines and accountability structures.

This Act is built on a simple belief: honest enterprise should not be held back by avoidable approvals, repeated renewals or overlapping permissions. Investors value opportunity, but they value predictability just as much. Entrepreneurs value speed, but they also need a government system that responds with clarity. Our reform gives them both: fewer unnecessary steps and a stronger guarantee that the State will act within a defined framework. We did not design this law for rankings. We designed it for outcomes.

For decades, regulatory systems often treated every industry in the same way, irrespective of scale, activity or risk. A small start-up and a large industrial project could face near-identical scrutiny, even when the nature of what needed to be checked was entirely different. In many cases, businesses had to seek more than one approval for the same activity. Such systems did not make governance stronger. They only spread scrutiny thin, delayed genuine economic activity and reduced the time that government could spend on areas where oversight was genuinely required.

The Chhattisgarh Ease of Doing Business Act replaces this approach with a risk-proportionate system. Low-risk enterprises can proceed through self-certification, without physical inspection. Medium-risk enterprises can obtain certification through empanelled third-party experts. High-risk enterprises will continue to be subjected to thorough technical due diligence because trust-based governance cannot mean ignoring risk.

But even in such cases, scrutiny will operate under a defined clock. If a certificate is not issued within the timeline prescribed under the Chhattisgarh Lok Sewa Guarantee Act, the approval will be deemed to have been granted. Any delay beyond three days will be escalated directly to the Executive Committee. We have chosen to enforce certainty through law, not leave it to discretion.

The principle behind this design is clear. Government oversight should be strongest where risk is highest and lightest where risk is low. This is not deregulation. It is better regulation. If an enterprise carries limited risk, the system should not force it through unnecessary layers of approval. If an enterprise requires technical assessment, the State must retain that scrutiny, but it must also hold itself accountable for doing the work within time. The Act therefore reduces compliance where it is excessive, while preserving transparency and safeguards where they are needed.

We have also created an institutional structure capable of delivering this reform. The Executive Council, chaired by me, will set policy direction, amend the schedule where required and exercise final authority over Executive Committee decisions. The Executive Committee, chaired by the Chief Secretary, will oversee implementation and act as the appellate body for district-level decisions. The District Empowered Committee, chaired by the Collector, will review district-level authorities so that delays are identified early and resolved before they become a barrier for businesses. Reform cannot rest only on intent; it needs institutions that can monitor, correct and enforce.

Trust must also be earned continuously. That is why the Act includes safeguards for both businesses and the public system. It overrides conflicting provisions in other state laws so that a business is not caught between contradictory requirements. It holds officers accountable for delays through Section 14 and the provisions of the Lok Sewa Guarantee Act. It allows the State to revoke an approval where necessary, but only after a show-cause notice, a hearing and recorded reasons.

At the same time, bona fide actions taken in good faith are explicitly protected. This balance is important. We are stepping back from unnecessary gatekeeping, but not from responsibility.

The scale of the reform is significant. The Act consolidates 43 services across nine state Acts and eight departments, covering urban administration, industries, culture, home affairs, water resources and public works. Earlier, reform often meant amending one law or one service at a time. That approach could deliver progress, but only incrementally. Chhattisgarh has now created an omnibus legal architecture that can absorb future reforms without requiring repeated legislative change. This makes the system more adaptable and gives investors greater confidence that reform will not remain trapped in isolated departmental changes.

The biggest beneficiaries will be our more than 15 lakh Micro, Small and Medium Enterprises. MSMEs are the backbone of Chhattisgarh’s economy. They create livelihoods, support local supply chains and take opportunities beyond large industrial centres. For them, compliance time is not an abstract burden. It is time taken away from production, employment, customers and expansion. Every hour saved from avoidable approval or renewal processes is an hour that can be invested in growth. When government reduces unnecessary friction, small businesses gain the space to focus on building, hiring and serving markets.

This reform also reflects a larger national direction. It responds to the Prime Minister’s call for a nationwide deregulation drive, for it is central to India’s Viksit Bharat ambition. Chhattisgarh has chosen the more ambitious path: a comprehensive omnibus law, rather than a narrower service-by-service amendment. In doing so, we are aligning state-level governance with the national objective of building a more competitive, more responsive and more enterprise-friendly India.

In every interaction with investors, one message consistently emerges: businesses value certainty as much as opportunity. Capital moves towards governments that are consistent, where approvals are time-bound and institutions are accountable. Incentives matter, but they are not enough.

As India advances towards Viksit Bharat 2047, states will increasingly compete on the quality of governance they offer. A state that can provide clarity, speed and accountability will become a more natural destination for investment and entrepreneurship.

With this Act, Chhattisgarh has set that standard for itself. We have chosen trust over red tape, partnership over procedure and accountability over discretion. Our message to entrepreneurs across India and investors around the world is direct: Chhattisgarh is ready to work with you through a governance system that respects your time, protects public interest and supports growth. Come and experience a state confident in its potential and ready to build the next chapter of India’s growth story together.

The Chhattisgarh Ease of Doing Business Act envisages a proportionate system. Low-risk enterprises can proceed through self-certification, without physical inspection. Medium-risk enterprises can obtain certification through empanelled third-party experts. High-risk enterprises will continue to be subjected to thorough technical due diligence because trust-based governance cannot mean ignoring risk

The writer is the Chief Minister of Chhattisgarh; Views presented are personal.