Skip to main content

Capital investment worth worth 3% of GDP "stalled" in India due to land acquisition problems

By Rajiv Shah 
A new report “India Land Governance: Country Narrative” has estimated that demands for urbanization in India, infrastructure and rapid expansion of industry would require an additional 10% of the land area (152 million hectares), currently used for agricultural production, though regretting, the process of making available such huge land would remain “complicated”.
Especially blaming the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013, passed by the previous UPA government, the report, prepared by a private firm, NR Management Consultants,  says, "Capital investments worth 3% of India’s gross domestic product (GDP) were stalled due to land acquisition problems”.
According to the report, “As on 2015, some 8-14% of the projects were stalled were related to land conflict. Out of 80 high-value stalled projects, more than 25% of projects were stalled due to land disputes risking the total investment of Rs 1,926 billion”, adding, “Conflicts covering 5.62 million people affecting Rs 12,853 billion and 1.8 million ha of land as on July 1, 2017.”
Especially raising alarm over tribal areas, the report says, in Schedule V Areas, i.e. tribal districts of Andhra Pradesh, Jharkhand, Gujarat, Himachal Pradesh, Maharashtra, Madhya Pradesh, Chhattisgarh, Odisha and Rajasthan –incidence of conflicts are “1.5 times greater the national average number of conflicts.”
Pointing out that “land acquisition of both common and private lands is a major cause of projects delays”, the report says, “Contrary to the common perception of disputes being limited to private lands, at least 15 percent of the stalled projects were on common lands, the total investment value of which was Rs 1,188 billion.”
“Due to land acquisition conflicts 5,780 (14%) of the more than 40,000 projects announced between January 2000 and October 2016 were stalled”, the report estimates, adding, “Infrastructure projects accounts for almost half of all the land related conflict.”
The report notes, out of the total geographical area of the country, 329 million hectares, since 1950, “the area of non-agriculture use (usually urban land) has been steadily increasing with decreasing of cultivable wastelands”, adding, “It now constitutes 8% of the geographical area, almost trebling in 60 years”, with the area under rural (excluding non-agricultural use and forests) has decreasing from 72% to 64%.”
The report says, “Satellite-based analysis available indicates that majority of the urbanization has primarily occurred in the cropland areas (0.7 million ha) while only 0.12 million ha of the forest areas were cleared for urban development during 1880–2010. The built-up area (or urban area) has increased by 5-fold from 0.46 million ha to 2.04 million ha during 1880–2010.”
The report says that, while the net sown area has increased by 20% since 1961, “the area of grazing and permanent pasture has been continuously declining including fallow and uncultivable wastes, which are mostly comes under village common land categories.”
“Satellite based analysis indicate that majority of the cropland expansion has been resulted from conversion of forest (16.9 million ha), grasslands/shrublands (14.8 million ha) as well as other types that primarily include fallow lands”, the report says.
“A total of 26 million ha forest areas (from 89 million ha in 1880 to 63 million ha in 2010) and 20 million ha of grasslands/shrublands (from 45 million ha to 25 million ha) has decreased in India. In contrast, total cropland area has increased by 48 million ha (from 92 million ha in 1880 to 140 million ha in 2010)”, the report underlines.

Comments

Anonymous said…
The link to the report is incorrect. Please change it to: http://landportal.info/library/resources/india-land-governance-country-narrative-full-report

This is the India: Land Governance Country Narrative (Full Report)
Editor said…
Thanks. Have corrected the link

TRENDING

Beyond India-China borders: Economic links expand, political gaps persist

By Bhabani Shankar Nayak*  Despite growing trade between India and China, a persistent trust deficit continues to shape their bilateral relationship. Expanding economic engagement has not fully resolved political differences, many of which stem from historical legacies as well as contemporary geopolitical concerns. Border disputes—often traced to colonial-era arrangements—remain a significant obstacle to deeper cooperation, while differing strategic alignments in global affairs add further complexity.

GreenTech Summit claims NCR as key green building hub, without pan-India comparison

By A Representative   The Indian Green Building Council (IGBC), under the Confederation of Indian Industry, held its GreenTech Summit 2026 in New Delhi, where industry representatives, policymakers and sustainability professionals discussed the adoption of climate technologies in India’s built environment.

Gujarat cadre to HDFC: When bureaucratic style hits corporate walls

By Rajiv Shah   I was a little amused by the abrupt March 17, 2026 resignation of Atanu Chakraborty —a Gujarat cadre IAS officer of the 1985 batch who retired from the government in 2020—as chairman of HDFC Bank . Much of what may have led to his decision to quit this ostensibly high post—actually a non-executive, part-time role—is by now well known. I followed most of it online with considerable interest, partly because I had interacted with him umpteen times during my stint as The Times of India correspondent in Gandhinagar from 1997 to 2012.

Operation Epic Fury: Making America great at the world’s expense?

By N.S. Venkataraman*  ​The decades-long enmity between Iran and Israel is well-documented, but historically, their direct confrontations have been brief, constrained by the logistical and economic limitations of sustained warfare. The current conflict in the Middle East, however, marks a radical and dangerous departure from this pattern. 

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

India has been getting its economic growth wrong for two decades, say top economists

By Jag Jivan*   India's official GDP figures have misrepresented the trajectory of the world's fifth-largest economy for the better part of two decades, according to a major new working paper published by the Peterson Institute for International Economics (PIIE). It finds that India overstated annual growth by up to two percentage points after 2011 — and understated it during the boom years of the 2000s.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

'Tax the top': Nationwide protests demand action as 1% control 40% of India’s wealth

By A Representative   Civil rights groups across the country observed the martyrdom day of Bhagat Singh on March 23, as people from diverse backgrounds united to raise their voices against growing economic inequality. The mobilisations marked the launch of a nationwide campaign against inequality, running from March 23 to April 14 (Ambedkar Jayanti), under the banner of the “Tax The Top” campaign.

Jerusalem's Al Aqsa mosque under siege: A test of Muslim solidarity and Palestine’s future

By Syed Ali Mujtaba*  In the cacophony of Israel’s and the United States’ attack on Iran, one piece of news has been buried under the debris of war: Israel has closed the Al Aqsa Mosque in Jerusalem to Palestinian worshippers during the holy month of Ramadan. The closure, announced as indefinite, affects the third most revered mosque in the Islamic world.