UP tops business-friendly states, implements centre’s 23 key reforms: Govt

Uttar Pradesh has emerged as the leading state in implementing business-friendly reforms, successfully adopting measures across all 23 priority areas identified by the central government to simplify operations, enhance transparency, and attract investment. According to the Deregulation 1.0 report, UP is the first state in India to comprehensively implement all 23 reforms, which span five major sectors: land, building and construction, labour, utilities, and regulatory permissions .

Land and Building Reforms:

The state has introduced a flexible zoning framework for mixed-use development, digitised land-use change procedures, and rationalised minimum road width norms for rural industries. Building regulations were amended to reduce land loss, while the role of third-party agencies in approvals, inspections, and online issuance of occupancy and completion certificates was enhanced, significantly reducing approval timelines.

Labour Reforms:

Key labour measures include the removal of restrictions on women working in certain hazardous industries, permission for night-time employment of women across factories, shops, and commercial establishments, and rationalisation of working hours. The compliance threshold under the Shops and Establishments Act has been raised from 10 workers earlier to 20 workers , easing regulatory requirements for small businesses. These reforms expand employment opportunities and flexibility for workers, while businesses benefit from a larger workforce pool and simpler compliance norms.

Utilities and Permissions:

UP has streamlined electricity and water connections via integrated digital platforms, simplified factory and trade license approvals online, enabled third-party certification for environmental consents, and reclassified non-polluting industries under the White category (industries that cause negligible pollution and do not require environmental clearance or consent to operate), further reducing bureaucratic hurdles.

Officials say these reforms are expected to boost investment and industrial growth by creating a more transparent and investor-friendly regulatory environment. Analysts add that easier approvals and faster execution could improve Uttar Pradesh’s competitiveness and generate sustained job creation and economic growth in the coming years.

With these initiatives, Uttar Pradesh is setting a benchmark in business facilitation, demonstrating how comprehensive regulatory reforms can strengthen economic development while empowering workers and supporting industry growth.