Tripura has emerged as the top-ranked state in the country under Business Reforms Deregulation 1.0 in 2025, according to the assessment reviewed by the  Prime Minister during the 5th Chief Secretaries’ Conference held in New Delhi from December 26 to 28. 

The ranking highlights Tripura’s leadership in easing compliances and improving the business environment, with Odisha and Uttar Pradesh jointly sharing the top three positions.

Buoyed by the progress under Phase I, the Centre is now gearing up to launch Deregulation 2.0 in 2026. The Cabinet Secretariat, under the leadership of T.V. Somanathan, has identified 30 new priority areas for major compliance reduction across seven sectors and departments. Of these, the maximum focus will be on Education and Utilities & Permissions, with five priority areas each.

Land-related compliances remain a significant challenge and account for three priority areas, followed by Environment, Building & Construction, and Health, with two focus areas each. Notably, Education, Environment and Health have entered the deregulation framework for the first time under Phase II. While the new labour codes have already eased regulatory burdens, at least one labour-related focus area has been retained for further reforms.

In addition to these 23 core priority areas, three overarching priorities and seven optional areas have been identified as desirable reforms. Deregulation 2.0 will build on the momentum of Phase I, which began in January 2025 and focused on land, labour, building & construction, utilities and permissions.

State-wise rankings show Haryana, Madhya Pradesh, Meghalaya and Rajasthan among the top 12 performers. Sixteen states and Union Territories are categorised as “moving forward,” while eight are yet to pick up pace. Poll-bound West Bengal ranks last at 20, with Delhi at 18.

Several best practices have been noted, including elimination of land conversion requirements by Andhra Pradesh and Uttarakhand, removal of negative lists for mixed land use by states like Tripura and Odisha, and liberalised building bye-laws in Haryana.