Land in India causing inequality

Source: The post land in India causing inequality has been created, based on the article “Land and the problem of inequity” published in “Business standard” on 9th February 2024.

UPSC Syllabus Topic: GS paper3-economy-Land reforms in India.

News: The article discusses how land in India is unfairly used, causing more inequality. It talks about three issues: landowners making money without productive use, the government owning but poorly managing land, and the misuse of shared natural resources, harming the environment and communities.

How is land in India causing inequality?

Unequal Returns from Land Ownership: Wealth from land in India often comes from scarcity rents rather than productive use. For example, in Mumbai, former textile mills and factories were transformed into expensive real estate for the wealthy, not the common people.

Government Land Mismanagement: The Indian government, as the largest landowner, is inefficient in managing its land. Significant amounts of government land in major cities, like the prime locations occupied by elite clubs in Delhi, are used for the benefit of the rich instead of addressing urban housing issues.

Exploitation of Common Lands: Common lands, meant for public use, are frequently encroached upon for projects favoring the affluent. This includes environmental degradation in areas like the Western Ghats and exclusive access to natural resources, adversely affecting local and indigenous communities.

What should be done?

Reform Land Ownership: Shift focus from earning through land scarcity to productive use. This can prevent wealth concentration among a few landowners.

Improve Government Land Management: The government should effectively manage its vast land holdings to benefit the broader population. For instance, using government land in cities to reduce slums.

Protect Common Lands: Ensure common lands are used for the collective good, not just for the rich. This involves preventing environmental degradation and maintaining equitable access for all communities.

Promote Inclusive Policies: Develop policies that encourage equitable land distribution and use, supporting inclusive growth rather than catering to the wealthy minority.

Question for practice:

Examine how land ownership and management practices in India contribute to inequality and suggest potential solutions to address these issues.