WHAT?
The Confederation of Indian Industry (CII) has urged comprehensive land reforms to boost India's manufacturing sector and enhance its competitiveness, aligning with the goal of achieving Viksit Bharat by 2047.
The manufacturing sector, contributing ~17% to India’s GDP (with the secondary sector at ~25%), is critical for economic growth. However, land access, cost, and regulatory inefficiencies hinder progress. The CII emphasizes that land reforms are essential for India to capitalize on global trade and investment opportunities amid shifting economic patterns.
Key Recommendations by CII
- GST-like Council for Land Governance: As land is a state subject, form a council to coordinate and standardize reforms across states.
- Integrated Land Authorities: Establish one-stop agencies in each state to streamline land allotments, conversions, dispute resolution, and zoning, addressing inefficiencies highlighted in the World Bank’s 2020 Doing Business Report (India: 9 procedures, 58 days, 7.8% of property value for registration vs. New Zealand’s 3.5 days, 0.1% cost).
- Digitization of Processes: Implement full digitization of land conversion with digitally signed certificates and QR code-enabled verification to ensure transparency and reduce corruption.
- Uniform Stamp Duty: Standardize stamp duty at 3–5% across states to make transactions more affordable.
- Conclusive Titling System: Adopt clear ownership titling to reduce litigation risks and unlock land for investment.
- Transparent Dispute Data: Publish data on land disputes (number, nature, resolution timelines) to promote informed decision-making and competitive federalism.
- Dynamic Zoning Plans: Use a “negative list” approach, allowing all uses except explicitly restricted ones, with regular updates based on economic needs.
- Environmental Sustainability: Identify degraded forest areas near industrial corridors for repurposing, offset by afforestation elsewhere.
- Cross-Border Industrial Corridors: Develop corridors with robust infrastructure (transport, power, water, digital connectivity) and streamlined land banks to integrate rural and underdeveloped areas.
These reforms aim to reduce delays, lower costs, attract investors, and integrate sustainability, positioning India as a global manufacturing and investment hub.
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