New Delhi’s Jan Vishwas 2.0 Bill: A Leap Towards Easing Business Operations in India
In a significant move aimed at enhancing the ease of doing business in India, the Department for Promotion of Industry and Internal Trade (DPIIT) is diligently working on the Jan Vishwas 2.0 bill. This initiative is part of the government’s first 100-day thrust, focusing on reforming approximately 100 rules and laws across various government departments. The overarching goal is to create a more conducive environment for businesses and entrepreneurs, thereby fostering economic growth and innovation.
The Jan Vishwas (Amendment of Provisions) Act, 2023
At the heart of this initiative is the Jan Vishwas (Amendment of Provisions) Act, 2023, which was enacted to support the "Make in India" initiative. This landmark legislation aims to decriminalize minor offences across 42 Central Acts, effectively eliminating 183 criminal provisions that span 19 Ministries and Departments. By doing so, the Act seeks to alleviate the burdensome legal framework that has historically hindered business operations in the country.
The Joint Parliamentary Committee, which reviewed the Jan Vishwas Bill, has recommended extending this decriminalization exercise to additional Acts. This recommendation underscores the necessity for continuous modernization of India’s regulatory framework, ensuring it remains relevant in an ever-evolving business landscape.
A Shift Towards Civil Penalties
One of the most notable features of the Jan Vishwas Act is its introduction of civil penalties and administrative actions for minor technical and procedural lapses. This shift is designed to reduce the fear of criminal penalties that often deter entrepreneurs and small business owners from pursuing their ventures. By replacing criminal sanctions with more proportionate civil penalties, the Act aims to create a more supportive environment for business operations.
The government’s commitment to fostering a business-friendly atmosphere is evident in its efforts to streamline legal processes and reduce the burden on the judiciary. The Jan Vishwas Act not only promotes trust between businesses and citizens but also enhances the overall efficiency of the legal system.
Modernizing Outdated Provisions
A key objective of the Jan Vishwas Act is to eliminate outdated provisions that no longer align with the current technological and business environment. The Act is a comprehensive reform that saves time and costs for both the government and the judiciary. By reducing unnecessary legal hurdles, it fosters a more conducive environment for businesses and entrepreneurs, allowing them to focus on growth and innovation rather than navigating complex legal frameworks.
The Act was passed by the Lok Sabha on July 27, 2023, and subsequently by the Rajya Sabha on August 2, 2023, receiving presidential assent on August 11, 2023. This swift legislative process reflects the government’s urgency in addressing the challenges faced by businesses in India.
Aligning with Global Standards
The decriminalization effort encapsulated in the Jan Vishwas Act is a major step towards aligning India’s regulatory framework with global business standards. By ensuring that penalties are proportionate to the severity of offences, the Act maintains stringent punishments for serious violations while promoting a more balanced approach to minor infractions. This alignment is crucial for enhancing investor confidence and facilitating smoother business operations in a competitive global market.
Conclusion
The Jan Vishwas 2.0 bill represents a transformative approach to business regulation in India. By focusing on decriminalization, modernization, and the introduction of civil penalties, the government is taking significant strides towards creating a more favorable business environment. As these reforms take shape, they hold the potential to not only boost economic growth but also to inspire a new wave of entrepreneurship across the nation. The commitment to fostering a business-friendly atmosphere is not just a policy shift; it is a promise to the citizens and businesses of India that their aspirations for growth and innovation will be supported by a robust and responsive regulatory framework.