Thursday, 11 September 2008

The Singur episode (TATA- Nano)

To move India out of poverty, millions of people have to be shifted from the farming to manufacturing/ service sectors.

Bengal must be among the poorest states in India. The low level of industrialisation coupled with under-developed agricultural practices and produce, in my view is a key reason. (Punjab- haryana, while agro based have very high productivity...however they to face low growth rates)

Agriculture in India has not grown more than 3-4% (long term average). Which means that a farmer in the long run has only and will only see his income increase 3-4%.

Industry and services however have the capacity to grow more than 10-12% per year and have done so the last 5 years.

What then is the fastest way out of poverty for a country that has 70% of its population dependent on agriculture? Surely shifting people to the services and mfg sectors is key.

Sure, i dont understand everything about the Singur problem. But i do want to know if our politicians such as Ms. Banerjee have considered that small scale intensive agriculture such as the type followed in Bengal is not the way to progress for the millions of her supporters. Is returning farm land to the farmer offering them a higher standard of living in the long run?

She could be right. But I suspect she isn't.

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