The Indian State in a Liberalising Landscape

Abstract

There has been much discussion recently on the 'great Indian land grab', i.e., the acquisition of fertile land by the government, and the handing over of this to large-scale industry. What do these ongoing land transfers tell us about the nature of the Indian state? To engage with prevalent views about state withdrawal from the economic sphere, or its reconstitution as a regulatory entity, this paper builds a picture of the state in a liberalising landscape based on empirical evidence. It outlines the role of the state in Gujarat province, during a transfer of 30 square kilometres of forest and coastal land to a cement manufacturing and exporting operation 'Karkhana Ltd'. The case of land liberalisation illustrated by the experience of Karkhana does not evince a state in withdrawal. Nor do we witness a regulatory state that watches a changing economy from the legal and coercive sidelines. As the normative legitimator of liberalisation, a buffer in the contentious politics of land, and as an institutional promoter of and manoeuvrer through the new land regime, India's state is central to the liberalising landscape.