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Introduction

India has undertaken major reforms to improve the ease of doing business through digitalisation and regulatory simplification. However, persistent inefficiencies in dispute resolution and land management continue to impede a truly investment-friendly ecosystem.

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Structural Bottlenecks in Contract Enforcement and Land Acquisition

• Judicial Delays: Lengthy judicial processes increase uncertainty and discourage businesses from relying on formal contracts.
  Eg: The India Justice Report 2025 highlighted over 5 crore cases remain pending across Indian courts.
• Limited Commercial Capacity: Inadequate infrastructure and shortage of judges in commercial courts delay resolution of business disputes.
  Eg: Commercial Courts established under the Commercial Courts Act, 2015 continue to face vacancies and uneven capacity across States.
• Fragmented Records: Incomplete digitisation and unclear land titles create ownership disputes and increase acquisition risks.
  Eg: The NITI Aayog’s Model Conclusive Land Titling Report (2023) highlighted that India largely follows a presumptive titling system, leading to frequent title disputes.
• Acquisition Delays: Multiple approvals, compensation disputes, and procedural requirements slow infrastructure and industrial projects.
• Federal Variations: Differences in State-level regulations and administrative capacities create an uneven business environment.
  

Implications for India’s Investment Climate

• Investor Uncertainty: Delays in enforcing contracts and securing land reduce predictability for investors.
  Eg: According to World Bank’s Doing Business 2020, enforcing contracts in India required around 1,445 days.
• Higher Costs: Prolonged disputes and project delays escalate operational and compliance costs.
• Reduced Competitiveness: Structural bottlenecks weaken India’s attractiveness relative to competing investment destinations.
  Eg: Vietnam has attracted manufacturing investments through faster administrative clearances and dispute resolution mechanisms.
• Stalled Projects: Land-related disputes delay the implementation of critical infrastructure and industrial projects.
• FDI Hesitation: Perceived regulatory uncertainty can discourage long-term foreign investment commitments.

Way Forward

• Judicial Modernisation: Strengthen commercial courts through greater capacity, digitisation, and timely appointments.
• ADR Expansion: Promote mediation and arbitration to reduce litigation burdens.
  Eg: The Mediation Act, 2023 provides a statutory framework for institutional mediation.
• Conclusive Titling: Transition towards guaranteed land titles to minimise ownership disputes.
  Eg: SVAMITVA Scheme has issued property cards using drone surveys, improving record accuracy in rural areas.
• Acquisition Reforms: Streamline procedures while ensuring fair compensation and rehabilitation.
• Cooperative Federalism: Encourage States to adopt best practices through incentives and reform-based rankings.
  Eg: DPIIT’s Business Reforms Action Plan (BRAP) promotes competitive federalism in improving the investment ecosystem.

Conclusion

India’s Ease of Doing Business reforms have delivered important gains, but sustainable improvements require addressing foundational bottlenecks in contract enforcement and land governance. Strengthening institutional capacity and ensuring predictable, transparent processes are essential to realise India’s ambition of becoming a globally competitive investment destination.

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