Plotting for India

If the Congress is afraid and hence the Centre is nervous about greenlighting more SEZs 8212; Thursday8217;s meeting of the SEZ board of approvals was postponed and a group of ministers will meet on the issue on Monday 8212; this politically motivated interval should at least be used intelligently. That way, when SEZs become politically touchable again, there will be fewer controversies. Unfortunately, available indications of official thinking do not hold out much hope. The PMO has reportedly argued that a national rehabilitation policy must be in place before more SEZ proposals are approved. A national rehab policy is a great idea only on paper. In a big and diverse country, a one-size-fits-all rehab policy is impossible. Most likely, it can8217;t even set useful pointers. Plus, different states are likely to have different views on rehab details. What the Centre can more usefully do is to argue that states should start moving away from the model of acquiring land for private industry to one where it plays the role of an enlightened middleman 8212; encouraging the creation of land markets and ensuring small titleholders can form effective bargaining collectives.

There also seems to be much handwringing at the Centre over acquiring agricultural land. But as Buddhadeb Bhattacharjee argues on our op-ed page today, acquisition of some farmland is inevitable. The question is what proportion of farmland. All objective studies show that even if India were to industrialise at breakneck speed, the amount of farmland required would be a small proportion of the total. This is therefore either a false debate or confusing micro effects on those who sell their land with the marco impact of industrialisation.

There also seems to be little official appreciation these days of the big macro benefit of industrialisation 8212; jobs. Bhattacharjee makes the point succinctly for Bengal; it holds for all of India 8212; farming can8217;t create too many jobs, industry can. India needs to industrialise and urbanise. Of course, like in every other case of economic modernisation, there will be social dislocation. Twenty-first century India can8217;t and must not display the insensitivity of Victorian England to such dislocation. But being mindless is not the alternative to not being heartless. The Centre 8212; the Congress as well 8212; needs to remember that.