UP Industrial & Labour Reforms for Ease of Business

Lucknow, Aug 28 (PTI) Uttar Pradesh is preparing to implement sweeping industrial and labour reforms aimed at making trade easier while ensuring workers' welfare, Chief Minister Yogi Adityanath said on Thursday.

The state government will soon introduce the ‘Sugamya Vyapar (Provisions Amendment) Bill, 2025', under which about 99 per cent of criminal provisions in 13 state legislations will be removed, replacing imprisonment with monetary penalties and administrative action, an official said.

Uttar Pradesh will become the first state in the country to decriminalise such a large number of provisions, it said.

Chairing a high-level meeting here, Adityanath said, "UP is preparing to implement sweeping industrial and labour reforms aimed at making trade easier while ensuring workers' welfare."

He said new steps to further strengthen the ease of doing business were the need of the hour, but reforms must also guarantee safety and benefits for workers.

“Embodying Prime Minister Narendra Modi's mantra of ‘Shramev Jayate', reforms must be equally beneficial to entrepreneurs and workers,” he said.

The proposed law will amend statutes including the Excise Act, Molasses Act, Tree Protection Act, Revenue Code, Cane Act, Groundwater Act, Municipal Corporation Act, Plastic Waste Act, Cinema Act and Panchayat Acts, among others.

The chief minister directed officials that punitive provisions be made transparent and just. Officials informed that feedback from 14 departments had been sought on the draft bill. Most have endorsed it, while some raised objections.

Adityanath asked officials to address these concerns to ensure a balanced law serving both industry and labour interests.

The meeting also discussed simplification of labour laws, including proposals to extend factory licence validity, make shop and establishment rules more practical, and provide greater opportunities for women workers.

The chief minister stressed that self-certification and third-party audits should replace outdated inspection practices to bring transparency.

As part of the reform package, the government is also preparing to launch ‘Nivesh Mitra 3.0', an upgraded single-window portal for investors. The new version will feature a fully digital application and approval process, common application forms, PAN-based identification, smart dashboards, multilingual assistance and AI chatbots.

Adityanath directed that services be delivered in a time-bound manner and investor grievances resolved promptly.

“These reforms will reduce the compliance burden on industries while ensuring workers' rights remain protected,” the chief minister added.