The Effects of LARR ACT – 2013 on Indian Industries and Economic Growth

The Right to Fair Compensation and Transparency in land Acquisition, Rehabilitation and Resettlement Act, 2013 ( LARR Act – 2013 ) is an act of Indian Parliament that regulates land acquisition and provides land down rules for granting compensation, rehabilitation to those whose land is taken away, brings transparency to the process of acquisition, of land to set up factories or buildings, infrastructural projects and assures rehabilitation of those affected. The act establishes regulation for land acquisition as a part of India’s massive industrialization driven by public – private partnership. The Act replaced the land Acquisition Act. 1894, a nearly 130 Years old law enacted during British rule. The Act came into force from 1 Jan, 2014.
The effects of LARR Act 2013 on Indian Industries and Economics growth are following : –
1.According to government of India, the Contribution of agriculture to Indian Economy’s gross domestic product has been steadily dropping with every decade since its independence. The Act will mandate higher payments of land as well as guaranteed entitlements from India’s non-agriculture derived GDP to the people supported by agriculture derived GDP. It is expected that the Act will directly affect 132 crore hectares of rural land in India, over 10 crore land owners with an average land holding of about 3 acres per land owner.
2.The act is heavily loaded in favour of land owners and ignores the needs of poor Indian. Who need affordable housing, impoverished families who need affordable hospitals, schools, employment opportunities and infrastructure and industries.
3.LARR 2013 as proposed severely Curtails free market transaction between willing sellers and willing buyers.
4.Amartya sen , The Nobel laureate in economics claims prohibiting the use of fertile agriculture and for industries is based near cities, rivers coast lines, expressways and other places for logistical necessities, quality of life for workers, cost of operation and various reasons. According sen even though the land may be very fertile, industrial production generates many times more than the value of the products produced by agriculture.
Industry always competes with agriculture because the shared land was convenient for industry for trade and transportation. When people move out of agriculture total production does not go down rather per capita income increase. For the prosperity of industry agriculture and the economy. India needs industrial station. The act impossible for entrepreneurs to feel comfortable in starting a business or by making it difficult to bay land for industry.