Comprehensive Land Reforms in India
The Confederation of Indian Industry (CII) has proposed a comprehensive set of land reforms aimed at making India a global manufacturing hub. These reforms focus on creating a coordinated, consensus-driven approach similar to the GST Council.
Key Proposals by CII
- Formation of a GST-like Council: Aims for coordinated and consensus-based land reforms across states.
- Uniform Stamp Duty Rates: Suggests a standardized rate of 3 to 5% across the country to ease investment processes.
- Integrated Land Authorities: Proposes the establishment of state-level authorities to streamline land-related processes.
- Digitization:
- Full digitization of the land conversion process.
- Use of digitally signed certificates and QR code-enabled verification to enhance transparency and reduce corruption.
- Conclusive Titling System: Urges states to ensure clear land ownership to minimize litigation risks.
Rationale Behind the Reforms
- India's attractiveness as an investment destination is bolstered by a stable policy framework, a large domestic market, and a young workforce.
- However, challenges like protectionism and trade wars make comprehensive land reforms crucial for economic growth.
Challenges and Recommendations
- India Industrial Land Bank (IILB): Currently serves as an information tool, but needs to evolve into a national land bank to facilitate land allotment through a single digital interface.
- Multiplicity of Authorities: CII suggests integrated authorities to handle allotments, conversions, and dispute resolutions efficiently.
- Stamp Duty Variability: High and inconsistent rates across states add costs and unpredictability for investors.
Impacts of the Proposed Reforms
A robust land reform strategy could significantly boost India's manufacturing sector, improve investor confidence, unlock rural development potential, and drive inclusive economic growth.
