Land use reforms
Cities in India face sprawl, informality, and unaffordability. Research shows urban land often remains unbuilt and unproductive due to restrictive regulations that are neither context-appropriate nor growth-friendly. Unlocking urban land can create jobs, reduce informality, boost businesses, and make cities more livable.
Reforming building and construction rules is key. States mandate compliance with over 100 building standards, often gold-plated and ignoring opportunity costs. Many of these standards exceed those of developed nations with far higher GDP, disregarding India’s poverty and limited enforcement capacity.
Governments are now prioritising urban regeneration. Both Union and state governments recognise urban development as crucial for economic prosperity. Systematic regulatory reform can increase usable urban space, promote compact development, and create formal livelihood opportunities.
Prosperiti partners with state and union governments to increase land use flexibility in India.
State of Regulation Report 2024
A factory in India is likely to lose 50% of land, or more, to four building standards. Today, an entrepreneur stands to lose anywhere between Rs 2.67 lakhs to Rs 3.16 crores depending on the size of the factory. The money wasted is obvious, but the unseen cost is of jobs lost. A single factory could generate between 5 to 652, if the land lost to standards were halved. Please write to us at info@prosperiti.org.in to access the datasets linked to the report.
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