Chhattisgarh Becomes First State to Introduce Risk-Based Business Approval System

 Chhattisgarh Becomes First State to Introduce Risk-Based Business Approval System

• Passed on: 16 July 2026 by Chhattisgarh Legislative Assembly led by CM Vishnu Deo Sai.
• Act: Chhattisgarh Ease of Doing Business Act, 2026 - first state to introduce comprehensive Risk-based and trust-based business approval framework.
• Aim: Simplify regulatory approvals, promote investment, benefit over 15 lakh MSMEs through faster, transparent, accountable processes.
• Highlights:
  • Approvals: Businesses classified by risk level, low-risk get self-certification, simplified compliance, high-risk continue inspections.
  • Deemed Approvals: Auto approvals if application not processed within prescribed timeline - time-bound service delivery.
  • Reforms: Abolishes mandatory annual licence renewals, initially covers 43 services across 8 departments, benefits 1.5 million MSMEs.
  • Governance: 3-tier monitoring system headed by Chief Secretary, District Collectors, Executive Council chaired by CM.
• UPSC Relevance: GS2 - Governance, Ease of Doing Business, GS3 - MSME, Federalism - Model for other states.