Ficci president: To catapult the economy, we must reform India’s markets for land, power and capital

Similarly, the notification of four labour codes represents a decisive step toward modernizing India’s labour market. The consolidation of 29 laws into a coherent framework simplifies compliance, promotes formalization, introduces a unified definition of wages and strengthens worker protection. Widespread implementation across states, ideally in a time-bound manner, will determine the extent to which India can unlock the full potential of labour reforms.

With labour and tax reforms advancing, the next phase of economic stewardship must focus on the core factors of production—land, power and capital—that determine the economy’s long-term trajectory of growth.

Land reforms: Land remains one of the most constrained resources in India’s development journey. Initiatives under the National Industrial Corridor Development Programme are promising and the expansion of plug-and-play industrial parks will be vital. Some of the key land reforms that can be undertaken include:

First, alternative public-private partnership (PPP) models for industrial development. For instance, government land can be developed via an equity model, wherein the developer builds the park and sub-leases plots to industries, while the government holds a maximum equity stake of 49%.

Another option is a revenue-sharing model, where a private developer and the government form a special purpose vehicle (SPV) for a project that develops industrial infrastructure and sub-leases it to industries.

In all these models, the industrial park developer would get full freedom to run and manage such a park efficiently.

Second, encourage states to streamline land conversion, zoning, building permits and environmental clearances under a unified digital window for enhancing the ease of doing business. While the Business Reforms Action Plan that promotes competition among states covers reforms related to land administration and land use, the Central government may consider incentivizing states by linking these reforms to their financial assistance and additional borrowings.