The initial orientation of the investment destination was only strategic locations in the country. That is why the cities like Mumbai etc grown up and became Metropolitan cities. Mumbai became Economic Capital of the country with the investment coming from all across the world and full support from the Government. The Britishers shifted to those places from where they could manage their business strategically and could exploit the Indian economy.
Now we are living in the days where socio-economic equality, freedom, democracy are respected and to make this fruits of development to the underpriviledged we are emphasizing reservations, special concessions etc.
In the same manner, the investment destinations, the public sector units, the business houses, the big projects such as Common Wealth games perhaps need to be shifted to those areas where the per capita income is very low, people don’t have any other opportunities. Why not the people from Bihar, Orissa, UP or some other undeveloped states should come to Delhi if lakhs of jobs are created through Commonwealth Games project ? Why not they should move to bigger cities where the jobs have been created by or with the support of Government ? Why reservation in only railways for residents of Maharashtra. Let there be reservation of funds with the Government of India for all states and more for undeveloped States. Let there be reservation of shifting of Institutions / Organisations for all states in equal manner even for all Financial, Technical etc organisations.
The policy of the Governemnt need to be revisited. Now the making of economic capital to the City like Mumbai has inculcated a false believe in them that this fund generation through recycle of investment-infrastructure-jobs, that this all belong to few people. Actually this all have come through the tax payers money from across the country, which has further generated revenue in the particular area.
The fund allocation to the States need to be meticulously planned so that maximum goes to undeveloped areas and there is reservation of certain percentage of fund for 4-5 undeveloped states. Even today the lion share of tax payer money with the Government goes to developed States, which further creates employment and thus attracts the people from underpriviledged areas. If the Organisations from bigger cities shifts to other areas, certainly the job opportunities will also shift to those areas.
Thus there are several steps which immediately requires to be taken up:
- Making of a non-lapsable pool of funds with the Government of India for undeveloped areas i.e. a certain percentage must only go to the backward states. Just like North eastern region where 10% fund goes every year.
- Shift the Public Sector Units from the developed Cities to Undeveloped Areas. If required some investment for making it viable must be made.
- Tax holidays to private players who would like to invest in such states.
- Organize bigger events such as Commonwealth Games in undeveloped cities, this will not only create job opportunities in lakhs but will also make that city more recipient of investment in future.
- Make more investment by putting manufacturing units of Government of India to these undeveloped States.
- Take stern action against such leaders playing divisive politics.
Some more thoughts
I strongly support the views shared by Pandey ji. He has been very correct in analysing the politcal economy behind the growth of select few cities in India. Also, the plausible reason regarding the selection of these as the destination for investment, as early as from British days.
To add to his point, these states were also favoured with freight neutralisation policies of the government autimatically making them the most favoured destinations in India. God forbid if such policies had come to effect in pre independence era, we would not be having TATA in Jamshedpur. What ever little advantage these so called under devloped states had in terms of cheap raw materials, accessibility, labour was wiped away in one stroke.
What if today, some Raj like insane and his coterie take up banner in these states against the made in Maharashtra product. Burn trucks coming from these states with finished products. I am sure a significant percentage of these made in Maharashtra products come from northern states. The revenue will nose dive certainly. The bubble will burst!
Worse still, what if clones of Raj ensure blockade of raw materials, the mineral riches of tribal states, poorest on several socio-economic indicators from going in to Maharashtra? These Maratha champions are though cautious enough to not utter against these states. But several things happen unprovoked and so it may in this case. What right does Maharashtra have to lay claim on the minirals mined in Jharkhand, Orissa and Chattisgarh or Bengal. I may be sounding bit divisive. But going by Raj's logic, these states should have right to decide on the freight rates for different states. And in that case the commercial relationship with Maharashtra will be subject to whims and fancies of the existing political dispensation of miniral rich states. Raj would never like Maharashtra to be that position at mercy of north and east indian states.
I am sorry but these thoughts had never come to my mind earlier. Having been in Delhi for more than a decade, I ahve made friends with individuals from different states. In fact the same issue when shared with one of my south Indian colleague evoked a sharp criticism from him. He said- ' I would not have been sitting here with you ni the same office if people like Raj had their way. My father shifted to Bhopal as a central govt employee and settled there. And I myself got the opportunity here in Delhi. Who knows, if such regulations existed in my father's days we would never had come to north India. Forget about the talk of one India, national integration, harmony, cultural exchange, maintaining unity in diversity etc. If the states want to meet the local aspirations, they should provide it from their own resources. Why look up to the centre for job preference, reservation and other nonesense'. He had many other things to say- an emotive outburst!