Political Economy of Land Policy in India

Abstract

Land is a factor of production like labour and capital but it is non-renewable natural resource and fixed in supply. With economic development, it has growing and competing demands. Hence, its access and efficient use for both agricultural and non-agricultural purposes become critical. Land policy in India is historically governed by ideology and political interests. Agricultural land reform policies led to present agrarian structure characterized by marginalization of land holdings, emergence of noncultivating owners and increasing current fallows. Policy on land acquisition for non-agricultural use is outdated and has emerged as a major contentious issue. An appropriate land policy and enabling legal and institutional framework is essential for achieving higher and sustainable economic development in India. This paper, therefore, examines political economy of land policy since independence and makes an attempt to bring out emerging issues and challenges pertaining to land policy for both agriculture and non-agricultural use from future economic development perspective.