Lack of Developed Land Market
Land Institutions of India do not support developed land market for allocation of large plots of land for industry, urbanisation and even for large scale commercial farming. Elements like ceiling on agricultural land and urban land, restriction on lease in and lease out of land, restriction and even ban on transfer of land, tribal tenure/tenancy system, restriction on transfer of land by land reform beneficiaries of ceiling and surplus land, ban on transfer of allottees of government waste land, changing the nature/classification of land are acting as hindrance for development of land market in market driven economy. Industrialist and Builders are dependent on government for allocation of large plot of land for development purpose. In Scheduled V and VI areas, there is no land market at all and these regions are poorest region of the country. There is no provision for allocation of land for other sectors of economy through market forces like industry, urbanisation, lack of movement of land resources from inefficient user to efficient users and credit market incompatibility in these areas.