With reduced scope for tax arbitrage, states push industrialisation by offering land. They are, thus, interpreting the benchmarks on compensation, rehabilitation, and social and environment impact to their advantage. It results in a fragmented approach to land acquisition that ranges from non-intervention to cherry-picking the ESG components. And it contributes to uneven development, although nationally the pace of infrastructure build-up has quickened with the legislative intent to ensure fair compensation. This is critical because the ‘public purpose’ behind acquiring land from its owners can be interpreted loosely.
Awards upholding the sanctity of contracts inspire confidence among investors about the procedural integrity of land acquired for their projects. This is a particular area of concern in bilateral investment treaties where India pitches for exhausting domestic judicial remedies before seeking international arbitration. India is offering itself as a base for global manufacturing, and land acquisition is key to lowering logistics costs and tapping a small window of opportunity as companies finalise investment plans to make supply chains more resilient. Judicial intervention that helps streamline land acquisition across the country adds to the appeal of Make in India.
