India’s industrial ecosystem has received a significant policy push as the Department for Promotion of Industry and Internal Trade (DPIIT) unveils a series of multi-sectoral regulatory relaxations aimed at strengthening supply chains and ensuring uninterrupted production. The latest development comes at a time when global and domestic industries continue to grapple with supply disruptions, cost pressures, and logistical bottlenecks.
The new measures ranging from faster approvals and customs duty reductions to sector-specific policy interventions—are designed to enhance resilience across manufacturing, energy, and allied industries. With India positioning itself as a global manufacturing hub, these reforms are expected to significantly improve ease of doing business while safeguarding critical supply chains. The move also signals a proactive approach by policymakers to address emerging challenges and maintain industrial momentum in a rapidly evolving economic landscape.
In a major policy intervention, DPIIT has rolled out a comprehensive set of regulatory relaxations targeting key industrial sectors. The primary objective is to remove operational bottlenecks, accelerate approvals, and ensure continuity in production.
Among the most notable developments is the fast-tracking of approvals for gas infrastructure projects. Since late March, authorities have processed 467 applications for Compressed Natural Gas (CNG) and Compressed Biogas (CBG) stations, reducing approval timelines to less than 10 days. This has already resulted in 157 final licences and 38 prior approvals, significantly boosting fuel infrastructure capacity.
The move is expected to enhance fuel availability for transportation and industrial operations, thereby supporting logistics networks and reducing supply chain disruptions.
India’s push for regulatory easing comes against the backdrop of persistent supply chain challenges following global disruptions in recent years. From pandemic-induced shocks to geopolitical tensions affecting raw material supplies, industries have faced increasing uncertainty.
To counter these challenges, the government has progressively introduced reforms aimed at simplifying compliance and improving efficiency. The latest DPIIT measures build on earlier initiatives such as Production Linked Incentive (PLI) schemes and infrastructure expansion programs.
Additionally, temporary policy decisions such as relaxing kerosene storage norms and imposing a ban on ammonium nitrate exports have been implemented to secure domestic supply chains. These steps highlight the government’s focus on prioritising internal demand and maintaining stability in critical sectors.
The scope of the new relaxations extends beyond fuel infrastructure to include manufacturing and allied industries. DPIIT has introduced advisory relaxations under the Boilers Act, granting a three-month extension for certification of high-capacity boilers used in power plants, refineries, and fertiliser units.
This move is particularly significant for industries dependent on continuous operations, as it prevents potential shutdowns caused by regulatory delays.
In another key decision, timelines for Quality Control Orders (QCOs) related to induction cooktops have been extended. This provides relief to manufacturers facing supply disruptions and compliance challenges, allowing them additional time to meet regulatory standards.
Further, the government has reduced Basic Customs Duty (BCD) to zero on critical raw materials such as Ethylene Vinyl Acetate (EVA) and certain polymers used in the footwear and leather sectors. Similar duty relaxations have been extended to chemicals required by the tyre industry.
These measures are expected to lower input costs, improve competitiveness, and support domestic manufacturing growth.
Industry stakeholders have largely welcomed the DPIIT’s proactive approach, viewing it as a timely intervention to address structural challenges.
Manufacturers and industry associations have highlighted that faster approvals and reduced compliance burdens will enable companies to scale operations more efficiently. The reduction in customs duties is also expected to provide immediate financial relief, particularly for small and medium enterprises (SMEs).
Experts believe that such targeted interventions can significantly enhance India’s attractiveness as a manufacturing destination, especially as global companies look to diversify supply chains away from traditional hubs.
According to data released by the Ministry of Commerce and Industry, India’s manufacturing sector has shown steady growth but continues to face challenges related to input costs and infrastructure gaps.
Economists note that easing regulatory constraints can have a multiplier effect on industrial output. Faster project approvals, for instance, not only reduce delays but also improve capital efficiency.
A report by the World Bank highlights that regulatory simplification and infrastructure development are key drivers of industrial competitiveness in emerging economies.
Similarly, analysts at the NITI Aayog have emphasised the importance of supply chain resilience in sustaining long-term economic growth.
In addition to regulatory relaxations, DPIIT has taken steps to stabilise energy supplies for key industries.
The allocation of industrial LPG for the paint sector has been increased to 70 percent of pre-March consumption levels. Meanwhile, gas supply for the glass industry has been stabilised at 80 percent of its average consumption.
These measures are crucial for industries that rely heavily on continuous energy supply for production processes. Any disruption in fuel availability can lead to significant operational losses and supply chain breakdowns.
By ensuring steady access to energy resources, the government aims to maintain production continuity and prevent cascading effects across sectors.
The latest DPIIT reforms are expected to have far-reaching implications for India’s industrial landscape. By addressing immediate challenges and improving regulatory efficiency, the measures could accelerate manufacturing growth and enhance supply chain resilience.
From an economic perspective, reduced input costs and faster approvals are likely to boost investment and increase production capacity. This, in turn, can contribute to job creation and export growth.
Politically, the move reinforces the government’s commitment to supporting industry and improving ease of doing business—key priorities in India’s economic agenda.
On the global stage, these reforms position India as a competitive alternative in the evolving supply chain ecosystem, particularly as companies seek to diversify manufacturing bases.
Looking ahead, experts suggest that sustained policy support and continuous monitoring will be essential to ensure the effectiveness of these measures. Further reforms may focus on digitising approval processes, enhancing logistics infrastructure, and strengthening domestic supply networks.
If implemented effectively, the current set of relaxations could serve as a foundation for broader structural changes, enabling India to emerge as a resilient and globally competitive manufacturing hub.