Indian growth story of late is seriously faltered by unrestrained population explosion, lack of education and skill levels to majority of its citizens, limited natural resources and short sighted vote bank as well as highly divisive politics by the politicos. Unfortunately, genuine efforts have been far and few to rein in these impediments of Indian growth story both at the macro level as well as micro level.
Indian financial health could be maintained satisfactorily in the last decade due to the twin factors of growth of its GDP at the rate of 7 to 9% and high savings rate of its Citizens, despite constricted tax net and heavy non-revenue expenditure that includes heavy subsidies and fuel imports. Largely visible and populist Subsidy route was pursued by government, instead of more reliable techno-community farming, to prop up agricultural sector though it has been contributing a measly 1 to 2% of GDP growth.
Unfortunately, some of the ideologues and the citizens ridiculously failed to realize the importance of Industrial growth and the associated socio-economic benefits, both tangible and intangible, to be accrued to them in their regions. Despite being direct beneficiaries’ of governments subsidies as well as welfare schemes and the same time being tax-exclusives, some sleazy people and their leaders have been vehemently protesting against setting up of Major industries in their regions, for some irrational and self-centered reasons best known to them.
States like Andhra Pradesh, Orissa, West Bengal and Tamil Nadu are highly debt ridden and Electrical power hungry states where growth is paramount for uplifting their poor. However, violent protests in Nandigram and Singur of West Bengal had resulted in shelving of Major investments in that region thus robbing themselves of some great long term opportunities like employment, infrastructure development, improvement in living standards apart from a host of indirect benefits. Similar protests are continuing in Kakrapalli and Nellore in Andhra Pradesh, Koodankulam in Tamil Nadu against Green field thermal and nuclear power projects. Similar protests have become the order of day in some regions of Orissa and Andhra Pradesh against Mining and setting up of new Industrial establishments.
Unjustifiable nature of the protests against power projects can be gauged by reviewing at the electric power demand for the year 2010-2011. According to the 17th electric power survey of India report, India's industrial demand accounted for 35% of electrical power requirement, domestic household use accounted for 28%, agriculture 21%, commercial 9%, public lighting and other miscellaneous applications accounted for the rest. Agricultural demand is a whopping 21%, and the electrical power is supplied free of cost to farmers in states like Andhra Pradesh, already grappling with crippling blackouts lasting several hours; where populist schemes are unabatedly and blatantly pampered by ruling class at the expense of the common man. The protestors and their instigators should realize that the electricity blackouts and power shedding is not only interrupting manufacturing sector but irrigation too across the country.Indian citizen will be embarrassed to know that India imports marginal amounts of electricity from our smaller neighbors; Bhutan, Nepal and Bangladesh despite having the obligatory resources and skills.
It is the state and central government’s obligation to immediately resolve the land acquisition issues, accelerate the governments mandatory approvals and environmental clearances, speed up the infrastructure development and enable training of skilled manpower (to prevent talent shortages for operating latest technology plants and mitigate unemployment) to facilitate a reasonable business climate in the country. Since, land acquisition results in loss of useful agricultural lands and wetlands, governments shall endeavor to reclaim the lost agricultural lands by converting barren lands to new water bodies, leading to more green pastures and cultivable lands around them. It may be noted that governments schemes such as drought areas programme and Integrated Watershed Development Programme have resulted in barren lands converting to more green pastures and cultivable lands, in the past.
Most importantly, state and central government shall regulate and monitor the Environmental balance of the regions due to new industries to ensure that no resistance or opposition is likely to arise from any category of stake-holders including the local population.
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