UP Introduces Key Business Reforms

• 30 Oct 2025

Why in News? 

The Uttar Pradesh government has approved key decisions to improve the business environment, including an ordinance to decriminalise minor trade offences and the establishment of a Directorate for Environment and Climate Change. 

Key Points 

• Decriminalisation of Trade Offences: 
  • The Uttar Pradesh government has passed the Uttar Pradesh Sugamya Vyapar (Ease of Doing Business) Amendment Ordinance, 2025, which decriminalises minor trade-related offences. 
  • Imprisonment provisions have been replaced with monetary fines and administrative penalties for violations like illegal lockouts, lay-offs, and running unregistered businesses. 
  • The ordinance amends 13 industrial and trade laws, including the Factory Act, Shop and Commercial Establishment Act, Motor Transport Workers Act, and Contract Labour Act. 
    • The administrative adjudication process will replace criminal court proceedings, as seen in the Sugarcane Act, 1953 streamlining dispute resolution. 
    • Provisions allowing for arrest in cases that no longer warrant imprisonment, such as under the Fire Prevention & Emergency Services Act, 2022, have been replaced with administrative penalties. 
  • This move is expected to reduce regulatory burdens, promote ease of doing business, and improve investor confidence in the state. 
• Creation of Directorate for Environment and Climate Change: 
  • Uttar Pradesh has established a Directorate for Environment and Climate Change, one of the first such bodies at the state level in India. 
  • The Directorate will focus on environmental conservation, sustainable development, and help the state align with India’s climate commitments under the Paris Agreement and COP28 outcomes. 
  • This initiative positions Uttar Pradesh as one of the most proactive states in climate governance, aiming to contribute to India’s net-zero emissions target by 2070.