Rule of the People

Industrial growth starts with land acquisition. And this is a vexed topic.People do not want to give up their land. Deciding on not acquiring land, government  has changed its mind ruining growth of industries. Initially Indian government promoted industrial growth and allocated Special Economic Zones(SEZ) and gave large areas of land. People of the local area had protested, and many SEZs had to shut down. New leaders emerged “fighting” for the cause of the locals(or for local vote banks) But many SEZs which had started immediately had started making their own infrastructure, and went on growing;  they had struck deals with the local community by diplomatic talks, and started working with them. Those SEZs which kept their financial position in good condition (without going into loss) and go on functioning well. Some tax incentives were offered by the state governments. States of Maharashtra and Gujarat have between them 80% of the SEZ projects, and they are doing well. Those in West Bengal have been completely wiped out, because of the change in political leadership in that state. The Nandi gram project was completely rolled back in West Bengal. 
Different Strategy.The different kinds of business partnerships and models can work out well. When there is 100% exemption for first five years and 50% exemption for next five years,it works out well also. Some states impose minimum tax, and thereby encourage industries. There is need for coordination between commerce ministry and the finance ministry in finalisation of policies of tax structure to encourage industrial development. Many times there is clash of policies, and the result is postponement of industrialisation. Often pressure groups rally around the topic of land acquisition--that arable agricultural land is diverted for the growth of non-agricultural industries.There is possibility of a canning and packaging industries or food preservation plants which would compliment agriculture. Protests against SEZ have arrested industrial growth. It was not anticipated that people would be so aware of the consequences and would react so quickly. No land acquisition is unquestioned. Government changes it land policies to please the protesting people and this goes against the industrialists. The idea of SEZ is itself not suited to India. When the basic site of an industrial plant is itself a cause for uncertainty, it scares the industrialists and this arrests industrial growth.If there is clash of political will and people’s will, it  results in the people winning.
Possible solutions Tax policy is being formulated so that we can give incentives for industries.New land polices are being evolved and are being invented, so that the people will approve also. Some states like Karnataka get best of both. People want industrial growth and government has found new way to allocate land. 'Land bank' is a novel way to provide for industry the basic land to begin projects with. In Karnataka,people are willing to adjust.Number of four wheeled vehicles that Bangalore city can support by its road ways is 7 lakhs but number of vehicles that ply its roads is 27 lakh.With industrial growth,the urban sites of Mysore and Bangalore have become twin cities. The paradox is that, when the road situation is bad, business people want to fly to Mysore and the infrastructure for that is lacking there too--there are only few flights,and the airports are inefficient.The sense of hopelessness would overcome any visitor in Bangalore. But local people are patient, considerate and peaceful in outlook. They tolerate with a two hour drive to work, sitting in their vehicle patiently, tolerating the sad sight of traffic jams every day;this shows that they are highly tolerant. Perhaps, it is this tolerance level that has fueled progress. IT hubs to grow well in Bangalore as tax concessions are made by the Karnataka government.Local people like new offices here;when they see businesses shifting here,they can sell their wares well, they can open shops, they can rent out their rooms etc Progress of the people is brought about by people’s will and  people friendly policies.Karnataka's people want growth,they are tolerant  and are patient enough to achieve it.