Budget 2026: Streamline land acquisition; utilise railways' vacant land

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• Streamlining land acquisition can boost India's industrial and urban growth
• Digitising land records and unified clearance can reduce delays and disputes
• Unlocking Indian Railways' vacant land can drive revenue and urban development

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Streamlining land acquisition in India is crucial to unlock rapid industrialisation, urbanisation and infrastructure development. The Union Budget for 2026 could be the perfect platform for Finance Minister Nirmala Sitharaman to set the ball rolling on a comprehensive land acquisition policy, along with a roadmap to unlock the economic potential of Indian Railways' vast vacant land resources.

This strategic reform will transform underutilised assets into dynamic engines of growth, generating significant revenue and fostering urban development.

Current Challenges

Land acquisition in India is a highly complex and often protracted process, falling under the concurrent list, which means both the central and state governments have legislative powers. This leads to a fragmented regulatory environment with diverse state-specific laws and varying land use policies.

Developers frequently face the daunting task of negotiating with numerous small-holding owners, each with distinct expectations and legal claims, which can result in lengthy legal disputes and significant project delays.

The absence of comprehensive, digitised land records further exacerbates these challenges, making due diligence and transaction finalisation exceptionally difficult.

Proposed Reforms

To accelerate industrial and infrastructure development, several key reforms are necessary. Firstly, simplifying land acquisition processes through legislative amendments that clarify responsibilities and streamline procedures is paramount.

Secondly, establishing dedicated "land banks" at state and central levels, comprising readily available land parcels identified for industrial use, can significantly reduce negotiation complexities.

Thirdly, creating a unified, single-window clearance mechanism for all land-related approvals, coupled with strict, enforceable timelines, would minimise bureaucratic delays.

Additionally, digitising land records and integrating them across various government departments.

Utilise the railways' vacant land

This significant land bank of Indian Railways represents a major untapped asset. Despite its vast size, a substantial portion of this land lies fallow or is underutilised, representing a significant missed opportunity for economic value creation and urban development.

This underutilization not only deprives Indian Railways of potential revenue streams but also contributes to urban sprawl and housing shortages in densely populated areas, hindering overall infrastructure development and economic efficiency.

Freeing these up can lead to a multitude of high-impact initiatives such as public infrastructure projects, green spaces, or even affordable housing initiatives, addressing critical societal needs.