CII pitches for radical land reforms—GST-like council, 5% max stamp duty & digital titling—to boost manufacturing. Seeks integrated authorities to cut red tape.
GST-Style Council, 5% Uniform Stamp Duty & Digital Land Banks Among Key Recommendations
CII’s 9-Point Blueprint to Unlock India’s Manufacturing Potential
New Delhi – The Confederation of Indian Industry (CII) has unveiled a transformative agenda for land market reforms positioning them as critical to achieving India’s $10 trillion economy vision by 2047. The proposals aim to resolve long-standing bottlenecks in industrial land acquisition and boost India’s competitiveness as a China+1 alternative.
Core Recommendations
| Reform Area | Current Challenge | CII’s Proposal |
|---|---|---|
| Policy Coordination | Fragmented state-level regulations | GST-like National Land Council |
| Stamp Duty | 3-8% (varies by state) | Uniform 3-5% nationwide cap |
| Land Titles | Disputed ownership (30% cases) | Conclusive titling system |
| Digital Governance | Manual conversion processes | QR-coded digital certificates |
Why These Reforms Matter?
1. Tackling Inefficiencies
🕒 Avg. 18 months to acquire industrial land vs 3 months in Vietnam
💸 Stamp duty variances: 3% (Gujarat) to 8% (Punjab) deter investors
2. Global Competitiveness Boost
🇨🇳 China+1 Shift: $1.3T+ mfg. projects seeking destinations
📈 PLI Success: Land delays risk $500B investment pipeline
3. Rural-Urban Synergy
🏭 Unlock 2.8M hectares of underutilized rural land
🚜 Farm-to-factory transition with clear titles
Key Proposals Explained
1. National Land Council (GST Model)
- Center + State reps to harmonize policies
- Dispute resolution mechanism for inter-state projects
2. Upgraded India Industrial Land Bank (IILB)
🌐 Single digital interface for pan-India land allotment
📊 GIS mapping of all industrial zones
3. State-Level Integrated Land Authorities
🛑 Replace 10+ agencies with one-stop clearance
⏱️ 30-day approval guarantee for conversions
Industry & Economic Impact
💼 Investor Confidence: Standardized rules attract Foxconn-style mega-projects
🏗️ Infrastructure Push: Faster land acquisition for corridors like DMIC
📉 Cost Savings: 5% stamp duty vs current avg. 6.2% = ₹12,400Cr/year cut
Comparative Advantage
| Parameter | India (Current) | Proposed Reform | Vietnam |
|---|---|---|---|
| Land Acquisition Time | 12-24 months | <6 months | 3 months |
| Stamp Duty | 3-8% | 3-5% | 0.5% |
| Title Disputes | 30% cases pending | <5% | 2% |
Implementation Roadmap
📌 2024-25: Pilot in Gujarat, Tamil Nadu, UP
📌 2026: Rollout conclusive titling nationwide
📌 2027: Full IILB digitization
Challenges Ahead
⚠️ State Resistance: Loss of stamp duty revenue
⚠️ Legal Overhaul: Requires constitutional amendments
⚠️ Tech Barriers: Village-level digital literacy
Investor Takeaways
💡 Watch: 2025 Budget for land reform allocations
💡 Opportunity: Land-tech startups for titling solutions
💡 Risk: Political delays in federal consensus
The Bigger Picture
🏭 $10T Economy Vision: Needs 300M sq ft new industrial space by 2030
🌍 Global Benchmark: UK’s Land Registry model cuts disputes to <1%
Final Thoughts
CII’s plan isn’t just about easier land deals—it’s a fundamental rewiring of India’s economic operating system. If implemented, these reforms could do for manufacturing what GST did for trade: turn a fragmented mess into a competitive advantage.
