Industry and Rural Development with Reference to Odisha

By : Seema Mallik

Page No: 149-159

Abstract
Since the 1990s there has been a shift towards liberalization and neoliberal policies in India that are being argued by development economists to achieve high growth rates. This shift towards a neoliberal state has resulted in a close nexus between the state and business groups. This alliance between the state and big businessis responsible both for releasing economic dynamism and for also limiting the spread of its resulting gains. Several groups feel alienated and marginalized from this developmental process. Economic growth has been unbalanced and unsustainable, failing to meet basic minimum needs of a large section of the population and poverty continues to be was widespread. Further the close state–corporate nexus has led to “land grabs” by the state which is acquiring land forcibly from poor farmers and tribals across the country in the name of development. This has adversely hit agriculture in the country where the contribution to GDP has gone down despite agriculture being the largest employer in the country. In this context, the present paper analyses that despite being one of the most mineral rich states, Odisha remains one of the poorest states of India. It argues that the development strategy towards heavy industrialisation to overcome poverty has further alienated poor farmers, creating greater social inequalities. Thus, in an economy where agriculture is the backbone of the country, damaging of the backbone will weaken the state and lead to uneven development. The paper concludes that heavy industrialisation and mining is not the solution but an inclusive, participatory growth with a right balance between agriculture and industry can bring about people-centred growth and contribute to the strengthening of the democratic institutions and processes in India. This argument is substantiated by case studies of Vedanta in Kalahandi district, which is amongst the poorest districts in the country.

Author :
Seema Mallik : Asst. Professor, Department of Political Science, Utkal University, Vani Vihar, Bhubaneswar, Odisha.