Riding on the momentum of the central government's push for trust-based governance, seven states, primarily governed by the National Democratic Alliance (NDA), have adopted reforms inspired by the Jan Vishwas Act. This coordinated effort marks a significant stride towards deregulation at the state level, fostering a business-friendly environment and reducing unnecessary legal burdens.
The Jan Vishwas Act focuses on decriminalizing minor offenses by replacing imprisonment with monetary penalties. This approach aims to alleviate the burden on the judicial system, encourage entrepreneurship, and promote a more predictable regulatory landscape. By removing the threat of jail time for routine, technical, or procedural lapses, the reforms seek to create an atmosphere of trust and mutual responsibility between businesses and the government.
Several states have already made substantial progress in implementing these reforms. Maharashtra has approved the Jan Vishwas Ordinance, 2025, amending regulations across labor, revenue, and public health departments to modernize penalty frameworks. Madhya Pradesh is working on amending 144 sections across 24 Acts to eliminate criminal penalties and streamline compliance requirements. Chhattisgarh passed its Jan Vishwas Bill in July, decriminalizing 163 provisions across eight Acts and shifting towards monetary penalties. Gujarat's Jan Vishwas (Amendment of Provisions) Bill amended 516 provisions across 11 laws, representing one of the most extensive revisions this year. Haryana's Jan Vishwas Ordinance decriminalized 164 provisions across 42 Acts administered by 17 departments, demonstrating a broad, cross-departmental effort. Odisha also promulgated its own Jan Vishwas Ordinance, covering 15 key proposals under 10 departments to reduce unnecessary penal actions and improve service delivery.
The implementation of these reforms is expected to yield several positive outcomes. Firstly, it is projected to boost entrepreneurship by reducing the fear of criminal prosecution for minor non-compliance. Secondly, it should reduce litigation, freeing up judicial resources and allowing businesses to focus on growth and innovation. Thirdly, the reforms are intended to provide greater regulatory clarity, making it easier for businesses to understand and comply with the law. Finally, these changes aim to make state-level investment climates more predictable and business-friendly, attracting both domestic and foreign investment.
The central government views the Jan Vishwas initiative as a cornerstone of its efforts to promote "trust-based governance". Commerce and Industry Minister Piyush Goyal has emphasized that this approach is driving India's ambition to become a developed nation, moving from a legacy-focused approach to one centered on development and trust. The government has already prepared a third edition of the Jan Vishwas Bill to further simplify laws and ease compliance for businesses and citizens.
The Jan Vishwas Act of 2023 decriminalized 183 provisions across 42 central acts. Building on this, the Jan Vishwas (Amendment of Provisions) Bill, 2025, seeks to amend 17 central acts to decriminalize or rationalize certain offenses and penalties, including those under the Motor Vehicles Act, the Legal Metrology Act, and the Apprentices Act. The 2025 bill expands the scope to cover 355 provisions under 10 Acts, focusing on both decriminalization and enhancing ease of living and doing business.
While the Jan Vishwas initiative has garnered widespread support, some concerns have been raised regarding potential labor rights issues and uneven implementation across states. To address these concerns, the government has emphasized the importance of robust enforcement mechanisms and ongoing dialogue with stakeholders to ensure that worker protections are not weakened and that the benefits of the reforms are realized equitably across all states.
Overall, the growing adoption of Jan Vishwas governance reforms by states signals a positive shift towards a more business-friendly and citizen-centric approach to governance. By fostering trust, reducing legal burdens, and promoting regulatory clarity, these reforms have the potential to unlock economic growth and improve the lives of ordinary citizens.
