Devinder Sharma of the Forum for Biotechnology and Food Security in New Delhi says promises of employment in the new industries do not materialize for the bulk of the farmers whose land is taken away. He says many of them are driven to an uncertain future in cities.

He says the new economy cannot sustain the kind of employment which farming provides in a populous country.

"No industry or group of industries can provide the kind of jobs or the scale of jobs India needs," Sharma said. "In a country which has 600 million farmers including their families, I don't think any industry has the capability or even industrial sector has the capability to provide even jobs to even one-tenth of that population."

However, businesses argue that an expanding industry can provide millions of new jobs and transform India to an industrialized nation.

Hurdles

The hurdles in acquiring land are slowing down investment and industrial expansion. Mining and steel projects proposed by big companies, such as ArcelorMital, Posco, and Vedanta Resources, are in hiatus as efforts are made to resolve conflicts with local populations. Plans for new power plants, roads and special economic zones to promote trade are facing similar hurdles.

An economist at the Federation of Indian Chambers of Commerce and Industry, Anjan Roy, says the issue is complex and needs answers which can address the interests of both sides. He says one of the suggestions is to make the displaced rural communities stakeholders in the new industries.