What structural economic challenge is most prominently highlighted by economists when evaluating land ownership patterns governed by customary laws in Arunachal Pradesh?

💡 Solution & Explanation

Customary land ownership laws in Arunachal Pradesh often vest land rights in communities or clans rather than individuals, preventing farmers from obtaining formal land titles. Consequently, rural residents face severe hurdles in utilizing land as collateral to secure institutional loans from commercial banks. This structural bottleneck restricts capital investment in agricultural modernization and small-scale entrepreneurship. Financial inclusion initiatives must navigate these traditional tenure frameworks carefully.