Rajasthan has emerged as one of India’s leading states in compliance reduction and deregulation, significantly strengthening its Ease of Doing Business ecosystem through wide-ranging administrative and policy reforms. Guided by the visionary leadership of Prime Minister Narendra Modi and the national Compliance Burden Reduction and Deregulation initiative led by the Cabinet Secretariat, Government of India, the state demonstrated exemplary performance under the proactive leadership of Chief Minister Bhajan Lal Sharma.
The Chief Minister ensured Rajasthan’s effective participation in the national reform agenda through continuous monitoring and strategic direction, supported by multiple high-level review meetings chaired by the Chief Secretary. As a result, Rajasthan successfully achieved full compliance in all 23 priority areas identified by the Government of India, placing the state among the top reform-performing states in the country.
These reforms have streamlined regulatory processes, modernised governance frameworks, and created a robust foundation for the execution of Memoranda of Understanding signed during the Rising Rajasthan Investment Global Summit. By simplifying rules and reducing procedural bottlenecks, the state has built a more efficient, transparent, and investor-friendly business environment.
Boost to MSMEs and Faster Approvals
To promote entrepreneurship and support the MSME sector, Rajasthan amended Rule 90 to simplify land conversion procedures in urban areas. The approval timeline was reduced from 60 to 30 working days, with automatic approval granted thereafter. This reform has significantly reduced project delays and accelerated the establishment of new enterprises across the state.
In a major push toward green and time-bound governance, Rajasthan introduced landmark reforms in pollution control. For MSMEs, the timeline for Consent to Establish (CTE) and Consent to Operate (CTO) was reduced from 120 days to just 21 days, while large and red-category industries now receive approvals within 60 days. The Rajasthan State Pollution Control Board also implemented system-generated auto-renewal of CTOs for compliant units based on self-certification.
Further easing regulatory pressure, amendments to the Water and Air Pollution Rules expanded the White Category of non-polluting industries from 104 to 877 sectors, exempting them from routine environmental approvals and enabling faster project execution.
Labour, Safety and Gender-Inclusive Reforms
To reduce regulatory burden on micro-enterprises, the Rajasthan Shops and Commercial Establishments Act, 1958, was amended to raise the employee threshold from 0 to 10. An ordinance was also issued to enhance workplace flexibility by increasing daily working hours from 9 to 10, mandating a 30-minute break after six hours, and raising the quarterly overtime limit to 144 hours.
In another progressive step, amendments to Rule 100 of the Rajasthan Factory Rules, 1951, now permit women workers—excluding pregnant women and nursing mothers—to work in hazardous tasks, including 15 activities previously restricted, marking a significant move toward gender-inclusive industrial participation.
Fire safety compliance was also streamlined through the introduction of third-party inspections by empanelled agencies and by extending the validity period of Fire NOC certificates, ensuring safety while reducing procedural delays.
Urban Planning, Infrastructure and Land Reforms
Rajasthan became a frontrunner in rationalising minimum road width norms for rural industries, fixing widths at 9 metres in planned areas and 4.5 metres in unplanned zones. The Urban Development and Housing Department, along with RIICO, amended building regulations to optimise land use, remove the 50% ground coverage cap on commercial plots, and rationalise parking norms.
The state further advanced sustainable urban growth by introducing the Transit-Oriented Development (TOD) Policy. The policy promotes high-density, mixed-use development around metro corridors, BRTS routes, and major transport networks to reduce congestion, curb urban sprawl, and encourage public transport usage.
Decriminalisation and Digital Investor Support
In a landmark move toward trust-based governance, the Rajasthan Jan Vishwas (Amendment of Provisions) Ordinance, 2025, was notified, decriminalising minor offences across 11 state laws by replacing criminal provisions with rationalised monetary penalties.
To strengthen investor facilitation, the single-window system RajNivesh was upgraded with an AI-powered chatbot that integrates data from multiple departments, offering real-time, seamless support to investors.
Through these comprehensive reforms, Rajasthan has reaffirmed its position as a national leader in reducing compliance, deregulation, and facilitating investment—reflecting its commitment to fast, transparent, and efficient governance driven by coordinated efforts across all state departments.
