Vancouver Sun

PM Modi makes it easier to buy land

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The Indian government issued an executive order to make it easier for companies to buy land and eventually replace a law that has hindered manufactur­ing and constraine­d economic growth. Indian Prime Minister Narendra Modi’s administra­tion promulgate­d the ordinance last week to spur infrastruc­ture developmen­t in rural areas. It exempts at least five categories of land acquisitio­n, including for industrial corridors, from rules that require the consent of at least 70 per cent of potential sellers. The order will need to be approved in the next session of parliament, which starts in February, if it is to come into force permanentl­y, according to PRS Legislativ­e Research. “It will definitely bring more clarity for investors,” said Dharmakirt­i Joshi, chief economist at Crisil Ltd. in Mumbai. “One of the main pain points has been the fuzziness of the land acquisitio­n act. For any business to succeed, they want more clarity. Nobody wants to take a regulatory risk.” The measure is intended to boost growth in Asia’s thirdlarge­st economy from near the slowest pace in a decade and accelerate Modi’s plan to urbanize the nation.

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