Many policies brought by the government to encourage industrialization have over time discouraged investors. India had for years after independence followed a policy that was against private entrepreneurship. The main reason for this was the overconfidence that the government can run everything. Not only did it fail, but it reversed the growth of the private sector.

When many countries that were destroyed in the Second World War became global powers industrialization we were concentrating on developing laws to control industrialization. Bureaucrats who had no relation with industries began controlling the industrial sector. In the name of License Raj they began a new business of corruption.

A change was set in motion only when Narasimha Rao became the Prime Minister of India in the early 90s. Now many states are providing encouragement to attract industries. Following in this footsteps, Kerala too tried to bring in many changes to attract industries. However, it has not been very successful.

Recently, the Revenue Department’s order to change the land holding limits to attract investors have actually distanced investors and criticisms have been raised that it will lead to crores of rupees in extra liability. According to the department order, the maximum limit that industries can hold is 15 acres. If those industries want more than 15 acres of land Rs.10 crore must be invested for every extra 1 acre of land and must provide jobs for 20 people.

This kind of law clearly points out that it was made by those people who have not run an industry even once in their lifetime. Firstly, it is not the government that must decide how many persons are to be given employment by a company. If this is written into the law, the labor department officials can conduct raids in its name and can even shut down the company.

Secondly, industrialists are reluctant to come to Kerala to invest even if lands are given for free. The industrialists understand these things and that is why they have asked the Chief Minister to withdraw this order. The government must consider their request and withdraw unpractical guidelines in the government order.

Even if investors are not supported it is ok. But we must not shove them away with these kinds of strange government orders.