Comprehensive land reforms needed for India to become manufacturing hub: CII

Economic Times

3 days ago

Industry body CII on Sunday pitched for comprehensive land reforms such as the formation of a GST-like Council to enable coordinated and consensus-based reforms and uniform stamp duty rates of 3 to 5 per cent across the country for India to become a global manufacturing hub. While protectionism and trade wars pose a challenge, India's stable policy framework, strong industrial capabilities, large domestic market and a young workforce, coupled with its reputation as a trusted and capable partner among many nations, set it up as an attractive investment destination, it stated.
The Confederation of Indian Industry (CII) has proposed establishing Integrated Land Authorities in each state, and also advocated full digitisation of the conversion process, besides suggesting rationalisation of stamp duty rates to a uniform range of 3 to 5 per cent across states. It also recommended that states should move to a conclusive titling system that ensures clear ownership. "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.
To successfully capitalise on these emerging opportunities and march towards the goal of Viksit Bharat by 2047, India must adopt a comprehensive and forward-looking competitiveness agenda, including factor market reforms such as land reforms," said CII. 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. In this context, it 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 formation of a GST-like Council to enable coordinated and consensus-based land reforms," it stated.
According to CII, 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 allots land across states through a single digital interface. This would improve transparency and simplify land in acquiring process for businesses," it said. According to the industry lobby, another major bottleneck is the multiplicity of authorities involved in land-related processes at the state level. To overcome this, CII proposed establishing Integrated Land Authorities in each state to act as one-stop agencies overseeing allotments, conversions, dispute resolution, and zoning. CII also advocated full digitization of the conversion process, with digitally signed certificates and QR code-enabled third-party verification to ensure transparency and eliminate corruption.
Observing that stamp duty rates in India remain high and vary widely across states, it said, this inconsistency adds cost and unpredictability for investors. CII recommended rationalizing these charges to a uniform range of 3 to 5 per cent across states to ensure standardisation while making transactions more affordable.
It also called up states to move to a conclusive titling system that ensures clear ownership, thus significantly reducing litigation risks and unlocking land for investments, among other suggestions.