In order to attract more investments, NITI Aayog Vice Chairman Ashok Kumar Lahiri has said that India needs to ease the process of land acquisition for setting up industries. He stated significant progress has been made in improving the ease of doing business in the country, but much more remains to be done, especially at the grassroots level.
He said ‘The factors holding up investment in India are mostly structural. Factor market imperfection, especially in land and capital, is a major impediment. Land acquisition for not only industrial projects but even government-sponsored infrastructure projects suffer several impediments, including legal challenges.’
Further, he said while foreign savings have helped India, the magnitude has been limited compared to what flowed into China and Singapore. Moreover, he noted that investment in a country is primarily funded by domestic savings.
