New Delhi [India], August 10 (ANI): Industry body, Confederation of Indian Industry (CII), has recommended a robust land reform, stating that these reforms are imperative for India’s competitiveness to boost the country’s manufacturing and investor confidence.
The CII said that the global landscape is undergoing seminal transformations, and trade and investment patterns are being reshaped by factors beyond cost. India has long harboured the goal of becoming a leading global hub for manufacturing.
While protectionism and trade wars are a challenge, India’s stable policy framework, strong industrial capabilities, large domestic market and a young workforce, coupled with it being seen as a trusted and a capable partner by many nations, set it up as an attractive investment destination, the industry body said.
To successfully capitalise on these emerging opportunities and march towards the goal of Vikit Bharat by 2047, India must adopt a comprehensive and forward-looking competitiveness agenda, including factor market reforms such as land reforms, said CII in its press release.
Elaborating on the importance of land reforms, CII said, “India has made remarkable progress in several areas of reform, but land remains a domain where foundational changes are overdue in terms of access, cost, and regulatory ease for businesses. As India aims to become a global manufacturing and investment hub, land reforms must form a cornerstone of our economic policy”.
Further sharing suggestions on land reforms, CII said that “a robust land reform strategy will not only boost India’s manufacturing, but also improve investor confidence, unlock rural development potential, and drive inclusive growth. We remain committed to working with central and state governments to realise this vision of a competitive and an industrially advanced India”. In this context, CII has made nine specific suggestions.
One, land governance in India lies largely within state jurisdiction, and the cross-cutting nature of land policy demands close cooperation between the Centre and states. CII recommends the formation of a GST-like Council to enable coordinated and consensus-based land reforms.
While initiatives like the India Industrial Land Bank (IILB) are commendable, several challenges persist. Currently, IILB is largely an information tool. It needs to evolve into a true national land bank that integrates not only land information but also allocates land across states through a single digital interface. This would improve transparency and simplify the land acquisition process for businesses.
Second, another major bottleneck is the multiplicity of authorities involved in land-related processes at the state level. The World Bank’s Doing Business Report 2020 highlights the gravity of the issue. In India, registering property requires nine procedures, 58 days, and costs 7.8 per cent of the property’s value. In contrast, New Zealand completes this in just 3.5 days at 0.1 per cent cost. These inefficiencies delay projects, increase cost and discourage potential investors.
To overcome this, CII proposes establishing Integrated Land Authorities in each state to act as one-stop agencies overseeing allotments, conversions, dispute resolution, and zoning.
Three cumbersome procedures for land use conversion further delay industrial projects. The current system is largely physical. CII advocates full digitisation of the conversion process, with digitally signed certificates and QR code-enabled third-party verification to ensure transparency and eliminate corruption.
Four, stamp duty rates in India remain high and vary widely across states. This inconsistency adds cost and unpredictability for investors. CII recommends rationalising these charges to a uniform range of 3 to 5 per cent across states to ensure standardisation while making transactions more affordable.
Five, the challenges are not only economic but also legal. Land disputes account for 66 per cent of civil litigation and a significant share of Supreme Court cases. Much of this stems from India’s reliance on presumptive titling. CII strongly advocates that states move to a conclusive titling system that ensures clear ownership, thus significantly reducing litigation risks and unlocking land for investments.
Sixth, transparency must also be improved. Most states do not have publicly available data on land disputes, making it hard for businesses to assess risks. In line with the Business Reform Action Plan (BRAP), CII recommends that states publish information on the number, nature, and resolution timelines of land disputes to enable informed decision-making and foster competitive federalism.
Seven, CII also believes that land governance should be more adaptive to future needs. India’s rigid, cookie-cutter zoning norms constrain innovation and mixed-use development. States should adopt dynamic zoning plans with a “negative list” approach, permitting all uses except those explicitly restricted. Zoning plans must be updated regularly based on evolving land characteristics and economic needs.
Eight, environmental sustainability must be integrated into reform efforts. CII suggests that states identify forest areas that can be carefully repurposed for industrial use, specially degraded forests in the vicinity of the industrial corridors, offset by afforestation in other regions. This balanced approach would support growth while preserving ecological balance.
Finally, large land parcels in rural and underdeveloped regions remain disconnected from industrial activity due to infrastructure gaps. CII recommends developing cross-border industrial corridors supported by infrastructure like transport, power, water, and digital connectivity, and streamlining land banks to integrate rural as well as underdeveloped areas. (ANI)
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