Global urbanization surpassing rural populations strains finite land resources, requiring strategic policies to prevent environmental degradation and compromised living conditions. As elucidated, the ideal land management policy prioritizes public input, environmental sustainability, equitable returns on land investments, support for vulnerable populations, and adherence to project timelines. This study reviews the impact of current land management policies in India, focusing on policies of five Indian states and a central government policy. Criteria include people’s participation, contribution allocation, returns on investment, relief to affected populations, and project execution timelines. The comparative analysis identifies better performance in the Andhra Pradesh Capital Region and Magarpatta policies in Maharashtra, surpassing Gujarat, with the central government’s compulsory acquisition policy ranking lowest. Shortcomings are addressed through insights from alternative approaches, particularly focused on valuation aspects. This research highlights the urgent need for refined land management strategies to accommodate urbanization while preserving environmental integrity and societal well-being.