Urgent call for extensive land reforms crucial for India's competitive edge, according to Confederation of Indian Industry (CII)

Urgent call for extensive land reforms crucial for India's competitive edge, according to Confederation of Indian Industry (CII)

India Pursues Robust Land Reforms to Boost Manufacturing and Investor Confidence

The Confederation of Indian Industry (CII) has put forth a comprehensive agenda for land reforms in India, aimed at transforming the country into a leading global hub for manufacturing and improving investor confidence.

The CII's nine specific suggestions target digitization, uniformity, transparency, simplification, and institutional reform to unlock the potential of India's land ecosystem.

1. A GST-like Council for land reforms will enable coordinated and consensus-based policy reforms between the Centre and states, recognizing that land governance largely lies with states but requires cross-cutting coordination.
2. Integrated Land Authorities in each state will streamline and unify land-related processes, reducing the multiplicity of authorities involved and simplifying land administration.
3. Full digitization of the land conversion process is proposed to enhance transparency, reduce delays, and facilitate seamless transactions in land use changes.
4. Uniform stamp duty rates across India, rationalized to a range of 3 to 5 percent, will eliminate inter-state disparities and reduce transaction costs.
5. A true national land bank will evolve from the current India Industrial Land Bank (IILB), integrating comprehensive land information and allowing centralized land allocation across states through a single digital interface.
6. Moving towards a conclusive titling system in states will ensure clear and indisputable land ownership and title records, minimizing disputes and investor risk.
7. Publication of data on land-related cases, approvals, and timelines will enhance transparency and enable better monitoring of land administration performance.
8. Simplification and reduction in procedural complexity for registering property and land transactions are necessary to acknowledge that currently multiple procedures, delays, and high costs discourage investment.
9. Closer cooperation between the Centre and States for holistic land reform policy is essential, recognizing the cross-cutting and multi-sector nature of land as a resource and its centrality to manufacturing competitiveness.

In addition to these proposals, the CII emphasizes the importance of environmental sustainability in land reform efforts. To integrate rural and underdeveloped areas into industrial activity, the CII recommends developing cross-border industrial corridors supported by infrastructure like transport, power, water, and digital connectivity.

Addressing infrastructure gaps in rural and underdeveloped regions is crucial to facilitating growth. The CII also suggests streamlining land banks to facilitate the integration of these areas.

India's rigid zoning norms constrain innovation and mixed-use development. States should adopt dynamic zoning plans with a "negative list" approach, allowing all uses except those explicitly restricted.

Stamp duty rates in India vary widely across states, adding cost and unpredictability for investors. The CII recommends rationalizing these charges to a uniform range of 3 to 5 percent.

Land disputes account for 66 percent of civil litigation and a significant share of Supreme Court cases in India. The CII advocates moving to a conclusive titling system to ensure clear ownership and reduce litigation risks.

The establishment of Integrated Land Authorities in each state will oversee allotments, conversions, dispute resolution, and zoning.

India's stable policy framework, strong industrial capabilities, large domestic market, and a young workforce, along with its reputation as a trusted partner, make it an attractive investment destination. The CII believes that land reforms are crucial to boosting India's manufacturing sector and investor confidence.

[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4] [5] [Source 5]

1. A robust land reform agenda, as proposed by the Confederation of Indian Industry (CII), includes addressing the issue of land disputes, which account for 66% of civil litigation in India, by moving towards a conclusive titling system.
2. To boost the business and manufacturing sector in India, the CII emphasizes the importance of environmental sustainability, suggesting the development of cross-border industrial corridors in rural and underdeveloped areas, supported by necessary infrastructure such as transport, power, water, and digital connectivity.
3. To enhance transparency and reduce delays in land use changes, the CII's recommendation for full digitization of the land conversion process is essential, along with the establishment of Integrated Land Authorities in each state to oversee allotments, conversions, dispute resolution, and zoning.

Read also: