Land Reforms in India's Manufacturing Growth

Land acquisition is a critical obstacle in India's manufacturing growth, marked by slow and costly processes due to several systemic inefficiencies.

Challenges in Land Acquisition

• Multiplicity of authorities and fragmented land records complicate acquisition processes.
• Inconsistent stamp duty rates and unclear land titles lead to delays and litigation risks, deterring investors.

Government Initiatives

• India Industrial Land Bank (IILB): Serves as an information portal but lacks in actual land allocation.
• Digital India Land Records Modernisation Programme: Aims to digitize land records, though uneven across states.
• Model Tenancy Act 2021 and RERA: Frameworks to enhance transparency and ease access.

CII's Recommendations

• Establish a Goods and Services Tax Council-like land council for center-state coordination.
• Create integrated land authorities in each state for streamlined processes.
• Shift to conclusive titling and implement uniform stamp duty rates of 3-5%.

Past Government Attempts

• Amendment of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013, in 2015 through an ordinance.
• Facilitated land acquisition for strategic projects, industrial corridors, and defense but faced political opposition and protests, leading to its lapse.

Ongoing Challenges and Broader Reforms

• Political consensus is needed to balance economic growth and landowners' rights.
• Engagement with states, industry, farmers' groups, civil society, and local governments is crucial.
• Other pending reforms include the full implementation of the four labor codes.

Addressing land reform and other factor market issues is vital for capitalizing on global supply chain shifts and increasing manufacturing's GDP share.