The land acquisition procedure should be more regulated and the auction process can be used to determine correct compensation price, industry body Assocham said in a joint study with consulting firm Frost & Sullivan.
The study also said monetary and non-monetary compensation can help attract more landowners who can part with their land.
A hassle free procurement of land is necessary to boost industrial development of the state and address the issue of lack of basic facilities in industry-ready land areas.
"The land acquisition procedure should be more regulated and the auction process can be used to determine correct compensation prices," the study said.
On the economic front, the study said there is an urgent need to address the debt scenario of the state to balance the ratio between debt and gross state domestic product. The industry body also called for laying emphasis on generating both tax and non-tax revenues to shore up government finances