India’s Deregulation Drive Aims for 70 % Completion by 2026
The Centre has set a target to complete roughly 70 % of the reforms in the second phase of its deregulation programme by the end of 2026. The effort, which began in January 2026, builds on a first phase that saw about 76 % of its reforms implemented.
### Focus on Housing, Building and Land‑Use Rules
The new phase will concentrate on easing restrictions around industrial housing, building‑control regulations and land‑use policies. These areas are seen as key to removing bottlenecks that delay housing and industrial projects. The government highlighted that simplifying land‑use rules could give developers greater flexibility and help create new residential colonies near industrial hubs.
### Progress to Date
According to the Economic Survey 2025‑26, 630 of 828 actionable reforms had been implemented as of 23 January 2026, with an additional 79 under active implementation. The first year of the initiative had already tackled many building‑control and land‑use issues, including changes to Delhi’s master plan that could spur new development.
### Coordination and Oversight
A task force on compliance reduction and deregulation, set up by the Cabinet Secretariat in January 2025, leads the coordination. Chaired by Cabinet Secretary T. V. Somanathan, the group works with all 28 states and eight Union Territories to identify and remove unnecessary regulatory requirements.
Why It Matters
Reducing regulatory hurdles is expected to lower the cost of doing business, attract investment and accelerate the expansion of manufacturing and other industrial activities. By focusing on industrial housing, the government also aims to address the accommodation needs of workers, a critical factor for sustained industrial growth.
Context
India’s deregulation push is part of a broader strategy to make the economy more business‑friendly. The first phase’s success, with 76 % of reforms implemented, set a benchmark for the second phase. The emphasis on land‑use and building regulations reflects long‑standing challenges that have slowed construction and development across the country.
What to Watch
- Progress reports on the 70 % implementation target as 2026 approaches. - State‑level changes to land‑use and building codes that could unlock new development. - The impact of simplified industrial housing regulations on worker accommodation and industrial expansion.
These developments will shape India’s investment climate and the pace of industrial growth in the coming years.