Acquiring land for Industries - How wise?

India is not short of labour, capital and enterprise. Being the second most populous country abundant cheap labour is accessible to Indian industries. Indian companies have had more positive cash flows and low debt in recent times. A recent UN report suggests that India is likely to be one of the top recipients of FDI (foreign direct investment) until 2012.Thus capital is also aplenty. Indian entrepreneurs are making more headlines now than in the past. But even with these there is scarcity of an important resource - land. Scarce non agricultural land is on the verge of becoming the biggest roadblock to India's future potential.

The central government is finding it difficult to keep its 'pro reform' tag when it comes to land acquisition. Its political interests has made negotiating with thousands of small farmers holding tiny pockets of land all the more challenging. The Naxal attacks in Eastern India have only complicated matters. Several MNCs have threatened to withdraw their FDI plans. The exit of steel makers like Posco, Arcelor Mittal alone could take away US$ 80 bn. The government's own much publicized road-building plan is standing woefully short in execution.

Thus the road ahead for India's industrialization and infrastructure is very bumpy. Marred in socio-political disagreements, India's growth plans may well remain on paper. In fact expensive land may do to India what expensive labour is doing to China.

When people speak in the same breath about India and China, I become uneasy.
China has almost the same population as India but are blessed with 3 times the area.

I'll give some figures
China : Area 964821 Sq km
India : Area 3287590 sq Km

Population: China - 2006 - 1,306,313,800
- 2010 - 1,339,360,000
Percentage increase : 2.5%

Population: India - 2006 - 1,080,264,400
- 2010 - 1,187,340,000
Percentage increase: 9.9
Thus we see, while China has been able to control its population, our population growth exceeds our GDP hence our people are becoming poorer. With people like Lalu Yadav becoming ministers, how can you control population
China has not been able to control corruption but they have brought it under control.
They held the Olympics recently without a glitch while we are making heavy weather of a minor event like the CWG.
Why?
If what happened in Delhi had happened in China, the whole gang led by Sheila Dixit, Kalamadi, M S Gill and the other persons involved would have been executed by now.
China has the land to go in for infra structure projects.
Do we have the land?
The farmers who earn their living from, the land would get a one time payment which they would spend on cars, motore cycles, smart phones, ACs. Maybe, they may add a few floors to their houses, pave it with marble or tiles and finish their money. Then what? What would be their source of income thereafter. They would become beggars and find their way to the cities to over populate them, and give ammunition to people like Raj Thackeray.
I am not taliking through my hat.
We have seen this happening in Gurgaon where people now regret having sold their land.
Using fertile land for industrial purposes is just going to result in food shortage which we are already witnessing in parts of India.
A ban should be imposed on using fertile land.
If industry wants, they can use the Thar Desert in Rajasthan or the barren land indifferent parts of India which do not bear a single crop.
By using fertile land, you are just reducing the acreage under cultivation and the production of food grain
You will then have to import foodgrain.
The rich people who have benefitted from industries would not face difficulty as their purchasing power had increased but those millions who are not in that group will not be able to afford the imported prices.
There will be more Maoism.