2 minEconomic Concept
Economic Concept

Business Reforms Action Plan (BRAP)

What is Business Reforms Action Plan (BRAP)?

The Business Reforms Action Plan (BRAP) is a comprehensive framework developed by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, Government of India, to assess and rank states/UTs based on the implementation of business reforms. It aims to foster a competitive environment among states to improve the Ease of Doing Business (EoDB).

Historical Background

Following India's commitment to improving its global Ease of Doing Business ranking, the DPIIT initiated the BRAP exercise in 2015. This was a response to the need for sub-national reforms to complement central government efforts and create a more uniform and investor-friendly environment across the country.

Key Points

9 points
  • 1.

    Comprehensive Reforms: Covers a wide range of reform areas, including access to information, single-window systems, labour regulations, environmental clearances, land administration, construction permits, sector-specific reforms, and inspection reforms.

  • 2.

    State-level Implementation: States and UTs are required to implement the recommended reforms and upload evidence of implementation on a dedicated portal.

  • 3.

    Annual Assessment: DPIIT conducts an annual assessment, evaluating states based on their implementation scores and user feedback.

  • 4.

    Ranking/Categorization: States are ranked or categorized into groups (e.g., 'Top Achievers', 'Achievers', 'Aspirers', 'Emerging Business Ecosystems') to encourage competition and learning.

  • 5.

    Feedback Mechanism: Incorporates feedback from businesses and investors on the ground implementation of reforms.

  • 6.

    Focus on Digitalization: Emphasizes the use of technology for online services, transparent processes, and reduction of physical interface.

  • 7.

    Capacity Building: Supports states in building capacity for effective reform implementation.

  • 8.

    Facilitates Investment: Aims to attract both domestic and foreign investment by creating a predictable and efficient regulatory environment.

  • 9.

    Promotes Good Governance: Drives states towards greater transparency, efficiency, and accountability in their administrative processes.

Visual Insights

Comparison: India's BRAP vs. World Bank's Doing Business Report

This table compares India's indigenous Business Reforms Action Plan (BRAP) with the now-discontinued World Bank's Doing Business Report, highlighting the shift in India's approach to assessing and promoting Ease of Doing Business.

FeatureWorld Bank Doing Business ReportIndia's Business Reforms Action Plan (BRAP)
ScopeGlobal (190 economies)Sub-national (Indian States/UTs)
Assessment BodyWorld BankDPIIT, Ministry of Commerce & Industry, GoI
FocusRegulatory environment for small & medium enterprises in largest business cityComprehensive reforms across all districts/states, including sector-specific
MethodologySurvey-based, expert opinions, case studies (discontinued due to data irregularities)Evidence-based (states upload proof), user feedback, third-party validation
ObjectiveGlobal ranking, policy adviceFoster competitive federalism, improve state-level EoDB, attract investment
StatusDiscontinued in 2020Ongoing (latest BRAP 2024)

Recent Developments

5 developments

The latest BRAP 2022 report was released in 2023, categorizing states into various achievement levels.

Increased focus on district-level reforms and sector-specific reforms.

Integration of National Single Window System (NSWS) with state BRAP initiatives.

Emphasis on reducing compliance burden and decriminalization of minor offenses.

The news mentions BRAP 2024, indicating continuous evolution and assessment.

Source Topic

Uttar Pradesh Emerges as Top Investment Hub by 2025

Polity & Governance

UPSC Relevance

Important for UPSC GS Paper 2 (Governance, Government Policies) and GS Paper 3 (Indian Economy, Investment Models). Relevant for Prelims (reports, rankings, initiatives) and Mains (federalism, economic reforms, ease of doing business).

Comparison: India's BRAP vs. World Bank's Doing Business Report

This table compares India's indigenous Business Reforms Action Plan (BRAP) with the now-discontinued World Bank's Doing Business Report, highlighting the shift in India's approach to assessing and promoting Ease of Doing Business.

BRAP vs. World Bank Doing Business Report

FeatureWorld Bank Doing Business ReportIndia's Business Reforms Action Plan (BRAP)
ScopeGlobal (190 economies)Sub-national (Indian States/UTs)
Assessment BodyWorld BankDPIIT, Ministry of Commerce & Industry, GoI
FocusRegulatory environment for small & medium enterprises in largest business cityComprehensive reforms across all districts/states, including sector-specific
MethodologySurvey-based, expert opinions, case studies (discontinued due to data irregularities)Evidence-based (states upload proof), user feedback, third-party validation
ObjectiveGlobal ranking, policy adviceFoster competitive federalism, improve state-level EoDB, attract investment
StatusDiscontinued in 2020Ongoing (latest BRAP 2024)

💡 Highlighted: Row 6 is particularly important for exam preparation

BRAP 2024: State Categorization for Business Reforms (Illustrative)

This illustrative bar chart shows the typical categorization of Indian states/UTs under the Business Reforms Action Plan (BRAP) 2024, based on their implementation of reforms. Uttar Pradesh was recognized as a 'Top Achiever', demonstrating its commitment to improving the business environment.