Centre's district-level playbook to steer business reforms in states

The DPIIT has told states to conduct a training need assessment (TNA) every year for officers and staff involved in investment promotion and facilitation

business, reform, idea — The DPIIT has further advised states to create a structured mentoring network for startups at the district level. | Illustration: Binay Sinha

7 min read Last Updated : Nov 20 2025 | 12:09 AM IST

With the Prime Minister’s Office (PMO) pushing for improved ease of doing business at the state level, the Department for Promotion of Industry and Internal Trade (DPIIT) has asked states to implement a sweeping set of district-level reforms. These range from appointing facilitation officers for investments above ₹50 crore and setting up startup cells, to ensuring easier access to loans for startups and updating geo-tagged industrial land banks.

These directions were issued in the last week of October under the Centre’s newly conceptualised District Business Reform Action Plan (DBRAP), Business Standard has learnt.

In its communication to state governments, the DPIIT said the prime minister has directed the formation of a dedicated cell in the Cabinet Secretariat to support ease of doing business in states. The DBRAP is designed to institutionalise reform implementation at the district level — particularly in Tier-2 and Tier-3 cities, industrial clusters and rural investment zones — and to complement state-level reforms by tracking the efficiency of approvals and services delivered locally, the department said.

During a meeting in last month, the DPIIT asked states to designate a “relationship officer” for every investment proposal above ₹50 crore. This officer would be responsible for facilitating the entire lifecycle of the project, with monthly progress updates monitored online. Government officials said the move is intended to provide end-to-end handholding for high-value investments, improve investor confidence and shorten approval timelines.

The DPIIT did not respond to queries by Business Standard on this matter.

A significant portion of the proposed reforms focuses on strengthening the startup ecosystem at the district level. To support startups in smaller towns and districts, the DPIIT has asked states to set up a dedicated Startup Cell inside every District Industries Centre (DIC), which are district-level offices providing support and services to industries.

This cell will act as a single point of contact for new entrepreneurs. It will guide startups through approvals, help them understand government schemes, resolve complaints and support them in formalities such as onboarding on the BHASKAR portal. The idea is to offer startups reliable, local support instead of forcing them to navigate multiple offices on their own, officials said.

The DPIIT has also told districts to promote incubation centres, co-working spaces and plug-and-play facilities so startups have access to affordable, ready-to-use workspaces. Many Tier-2 and Tier-3 cities lack such basic infrastructure, raising the entry barrier for new businesses. By encouraging public-private partnerships to create these facilities, the government wants to make it easier for entrepreneurs to launch and grow their ventures locally without having to move to larger cities, officials said.

District authorities have also been asked to work closely with banks and financial institutions so startups can access loans more easily. Many young companies struggle to get credit because they are new, lack collateral or are unsure which schemes they qualify for. To fix this, districts have been told to coordinate with banks and ensure that funds under various government schemes actually reach startups. These include the Credit Guarantee Scheme for Startups (CGSS), Micro Units Development and Refinance Agency (MUDRA) loans, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and the Prime Minister’s Employment Generation Programme (PMEGP), officials said. The aim is to reduce delays, remove confusion and help startups access formal credit early in their journey.

The DPIIT has further advised states to create a structured mentoring network for startups at the district level. This involves bringing together sector experts, experienced entrepreneurs, retired professionals and academicians who can guide new startups. Many first-time founders lack experience in business planning, financial management, market research or even basic soft skills such as pitching their ideas. By organising regular mentoring sessions and interactions, districts can help bridge these gaps. The goal is to give startups consistent guidance and practical knowledge, especially in Tier-2 and Tier-3 cities where such networks are usually absent.

To improve credit access for entrepreneurs, the DPIIT has asked states to introduce a standardised digital system for accepting detailed project reports (DPRs) at DICs. A DPR is essentially a full business plan that entrepreneurs submit to banks when applying for a loan. It outlines the business idea, costs, expected revenues and funding needs. By making the DPR intake process digital and uniform across districts, the government aims to make credit facilitation more transparent and efficient.

States have also been directed to ensure that bank-approved and SLBC-approved (State Level Bankers’ Committee) DPRs for major manufacturing and services projects are available both online and at DICs. This will help new entrepreneurs see examples of strong, bankable project reports and understand what banks look for. Officials said this is meant to reduce information gaps and help entrepreneurs prepare viable DPRs aligned with banks’ expectations, improving their chances of securing credit.

The DPIIT has also told states to maintain a regularly updated, geo-tagged inventory of industrial land at the district level. “Geo-tagged” simply means that the exact location of each land parcel is digitally marked on a map. This information must be integrated with the India Industrial Land Bank (IILB) portal -- a national platform showing available industrial land across the country. By keeping this data accurate and up to date, districts can make it easier for investors to identify suitable plots, check basic details online and avoid the usual uncertainty around land availability. The idea is to improve transparency and speed up land-related decisions for businesses.

Additionally, the DPIIT has asked states to ensure that industrial parks offer fully developed, ready-to-use infrastructure. This includes essential facilities such as internal roads, electricity, water supply, sewage systems and clearances needed to start operations. Many industrial parks, especially in smaller districts, currently lack some of these basic amenities, causing long delays for new units, officials said.

The DPIIT has told states to conduct a training need assessment (TNA) every year for officers and staff involved in investment promotion and facilitation. A TNA is a structured exercise to identify where officers lack knowledge or skills, and what kind of training they need. By doing this annually and fixing gaps through training and mentoring, the DPIIT wants districts to gradually build stronger institutional capacity. The objective is to ensure that district-level teams working on investment matters have updated knowledge about different sectors, government schemes, policy changes and investor engagement practices.

States have also been asked to make detailed district-specific information available online as part of an investor guide. This includes data on raw materials, such as agricultural produce and minerals, as well as information about upstream and downstream industries, industrial infrastructure and connectivity through ports, railways, airports, warehouses and inland container depots (ICDs). It also includes details of R&D facilities and skilling institutes. DICs will host and update this information.

The DPIIT has further instructed states to digitise all land- and property-related court case information from both revenue courts and civil courts. This means details such as party names, case status and filing dates must be uploaded in digital form so cases can be easily tracked. In addition, states must ensure that sub-registrar offices (SROs), where property registrations take place, have a functional grievance redress system to handle complaints promptly and efficiently.

These steps are meant to improve transparency, accountability and trust in land administration. When court case details are digitised, disputes become easier to monitor and resolve, reducing uncertainty for investors. Similarly, a proper grievance mechanism at SROs helps citizens and businesses get quicker responses to registration-related issues, officials said.

The reforms are part of a broader push from the PMO, which recently directed the formation of a dedicated cell within the Cabinet Secretariat to support ease of doing business across states. The DPIIT, in turn, is seeking to institutionalise district-level mechanisms so that major reforms are not limited to state capitals and major industrial belts, officials added.