NITI Aayog to come up with model FDI promotion template to enhance ease of doing business in states

NITI Aayog will soon come up with a model FDI promotion template to guide states to improve their investment readiness and reform execution, the move aimed at further enhancing ease of doing business.

The Aayog, on Thursday, held the first round of deliberations with states and top officials of stakeholder ministries and industry associations across seven reform areas vital to investment facilitation and improving the ease of doing business at the sub-national level.

The workshop, chaired by NITI Aayog member Rajiv Gauba, saw discussions on core issues of decriminalisation of laws, deregulation and compliance burden reduction, business reform action plan (BRAP) implementation, development of industrial infrastructure, single window clearance systems, financial and taxation reforms and investment promotion strategies.


As per the statement issued by the Aayog, there was a consensus among stakeholders that long-term investor trust depends not only on facilitation at entry, but also on consistent post-establishment support, including timely grievance redressal, policy stability, and seamless coordination across departments.

Additionally, strong branding and coordinated domestic and international outreach, including collaboration with industry associations and Indian missions abroad, was recognised as a critical enabler for attracting quality investment, it said.

Discussions were held on the need to convert minor business offences into civil penalties, while also streamlining compliance mechanisms to reduce the burden on entrepreneurs, the Aayog said.

There was also a strong emphasis on aligning state-level actions with the national Business Reform Action Plan (BRAP) framework, ensuring that reforms lead to measurable and comparable improvements, it added.

Stakeholders called for an end-to-end digitisation of state single window clearance systems, with emphasis on integration, predictability, and measurable turnaround times.

States called for making fiscal incentives more predictable, timely, and easier to claim, especially for MSMEs.

The importance of logistics connectivity and customs efficiency in attracting large-scale investment was also underlined, especially in the context of Make in India and global value chain integration.

Further, the role of dedicated Investment Promotion Agencies (IPAs) was underlined, with a focus on building professional capacity, investor handholding, and post-investment support, it added.