In order for India to become a major hub for manufacturing worldwide, the Confederation of Indian Industry (CII) has advocated for comprehensive land reforms, including the establishment of a council akin to the GST to facilitate coordinated and consensus-based reforms and uniform stamp duty rates of 3 to 5% nationwide.
India’s stable policy framework, robust industrial capabilities, sizable domestic market, youthful workforce and reputation as a reliable and capable partner among many countries make it an appealing investment destination, despite the challenges posed by protectionism and trade wars, the organisation said.
A strong land reform strategy will not only increase India’s manufacturing but also enhance investor confidence, unlock the potential for rural development and promote inclusive growth, according to CII. It has offered several particular recommendations in this regard.
The statement noted that land governance in India largely falls under state jurisdiction and the cross-cutting nature of land policy requires close cooperation between the Centre and states. CII recommended the formation of a GST-like council to facilitate coordinated and consensus-based land reforms.
CII acknowledged that initiatives like the India Industrial Land Bank (IILB) are commendable but highlighted that several challenges remain. At present, the IILB functions primarily as an information tool and CII suggested that it should evolve into a true national land bank that not only integrates land information but also facilitates land allotment across states through a single digital interface. Such an approach, it noted, would enhance transparency and simplify the land acquisition process for businesses.
The industry body also identified the multiplicity of authorities involved in land-related processes at the state level as a significant bottleneck. To address this, it proposed the creation of Integrated Land Authorities in each state to serve as one-stop agencies managing allotments, conversions, dispute resolution and zoning.
Further, CII recommended full digitisation of the conversion process, including digitally signed certificates and QR code-enabled third-party verification, to promote transparency and curb corruption. It observed that high and inconsistent stamp duty rates across states add to costs and unpredictability for investors and urged rationalisation of these charges to a uniform range of 3–5%. The body also called on states to adopt a conclusive titling system to ensure clear ownership, thereby reducing litigation risks and unlocking land for investments.
