Could Urgent Land Reforms Propel India’s Manufacturing Goals?
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Synopsis
The CII urges immediate land reforms to enhance India's manufacturing prowess, addressing existing challenges in the land sector to attract investments and foster economic growth.
Key Takeaways
- Urgent land reforms are crucial for India's manufacturing ambitions.
- A unified land policy can streamline industrial processes.
- Digital platforms can enhance transparency and efficiency.
- Reducing land dispute litigation is vital for attracting investments.
- Connecting rural areas to industrial hubs promotes inclusive growth.
New Delhi, Aug 10 (NationPress) The Confederation of Indian Industry (CII) has made an urgent appeal for comprehensive land reforms to enable India to fulfill its ambition of becoming a prominent global manufacturing and investment hub by 2047.
While acknowledging the progress made in various reform areas, CII highlighted the persistent challenges in the land sector that hinder industrial growth and deter investors.
In its statement, CII emphasized that India's robust policy framework, industrial capabilities, expansive domestic market, and youthful workforce render it a compelling investment destination, particularly amidst shifting global trade and investment dynamics.
To harness these prospects effectively, India must adopt a visionary competitiveness agenda, with land reforms as a critical focus.
CII urged that enhancing access, lowering costs, and streamlining regulations for businesses is vital.
It proposed the establishment of a GST-like council to harmonize land policies between the central and state governments, as land governance predominantly rests with the states.
The industry body also remarked that the current India Industrial Land Bank primarily serves as an information resource and should evolve into a national platform offering data and enabling direct land allotments via a single digital interface.
CII pointed out inefficiencies in the existing system, noting that property registration in India involves nine steps, takes an average of 58 days, and costs approximately 8% of the property's value.
In contrast, nations like New Zealand complete the process in just 3.5 days at a significantly lower cost.
To remedy these issues, it recommended establishing Integrated Land Authorities in each state to manage allotments, conversions, dispute resolutions, and zoning in a centralized manner.
CII also advocated for digitizing land use conversion processes, streamlining stamp duty rates to a uniform 3-5% across states, and transitioning from presumptive to conclusive land titling to diminish disputes.
It noted that land disputes represent two-thirds of civil litigation in India, fostering uncertainty for investors.
The industry body further urged states to disclose data on land disputes, adopt adaptable zoning regulations that promote mixed-use development, incorporate environmental sustainability in industrial planning, and enhance connectivity between large rural land parcels and industrial corridors through improved infrastructure.
CII believes these reforms would not only augment India's competitiveness but also foster rural development, attract greater investments, and propel inclusive economic growth.
Point of View
The call for land reforms by CII is pivotal for India's economic ambitions. Emphasizing a unified approach in land governance will not only streamline industrial processes but also pave the way for sustainable growth. As India navigates its path to becoming an investment hub, aligning state and central policies is crucial for success.
NationPress
19/08/2025
Frequently Asked Questions
Why are land reforms necessary for India's manufacturing sector?
Land reforms are essential to streamline industrial processes, reduce costs, and attract investments, ultimately enhancing India's competitiveness in the global market.
What challenges does the current land system present?
The existing land system is characterized by inefficiencies, lengthy registration processes, and high costs, which deter potential investors.
How can digital tools improve land governance?
Digital tools can facilitate faster land transactions, improve transparency, and provide a single platform for land allotments, enhancing overall efficiency.
What role does the GST-like council play in land policy?
A GST-like council would harmonize land policies between the central and state governments, ensuring cohesive governance and efficient land use.
What impact will these reforms have on rural development?
These reforms are expected to boost rural development by improving land access, connecting rural areas to industrial corridors, and promoting mixed-use development.
