Finance Minister Arun Jaitley said the “transient” social strife in Haryana, such as the violent Jat agitation that brought the State to a halt a few weeks ago, was rooted in inequalities within the State as 13 of its districts abutting the national capital are developing faster than the other districts.
Mr. Jaitley was addressing global investors at the ‘Happening Haryana’ summit here on Monday.
“We must bear in mind that when social challenges emerge, one of the principal reasons is inequalities — inequalities between communities, between regions and different sets of people. If 53 per cent of the people involved in agriculture are getting just 14 per cent of the State’s GDP, that itself is an indication that this is one area where investment is required, where the inequality itself has to be eliminated,” he said.
The Minister told investors that Haryana had a great opportunity to attract more investments than other States “notwithstanding some transient crises.”
“I think the State has a huge sense of resilience by which it is able to overcome these crises, as it has when they took place a few weeks ago,” he said, indirectly referring to the prolonged agitation by the Jat community leaders that led to widespread losses across the State and led to concerns about the investment climate in Haryana, which is seeking an investment of Rs. 1 lakh crore.
Mr. Jaitley also referred to the role of other political parties in creating a conducive environment for investments, without mentioning the stiff resistance the NDA government’s legislative agenda faces in Parliament.
“[Investors look for] stability in terms of policy, predictability in terms of policy, the overall attitude of not merely the government but various political formulations, because governments can change also. Just because there is a change of government, you don’t want a complete U-turn in policy,” Mr. Jaitley said.
Stressing that Haryana’s greatest advantage was its proximity to the national capital and being a part of the various industrial corridors that were coming up, he said there were other areas where Haryana had to “race through” for uniform development of its composite economy that had a significant agricultural, manufacturing as well as services sectors.
“…Because what is the developmental activity of Haryana in these 13 districts near Delhi and some areas near Chandigarh… there are other parts of the State, which for composite development, also need to grow,” the Minister said, urging the State government to address the issue by expanding the network of educational institutions to the districts not close to New Delhi and improving road and rail connectivity.
Mr. Jaitley said his Budget announcement to allow 100 per cent foreign direct investment in agricultural products produced, processed and sold in India, could also curb inequality in the State where more than half the people were engaged in agriculture.
“If there is an environment of paralysis in a given State, policies are not reforming, the investor doesn’t feel induced enough to invest there. Investors are not philanthropists and for every rupee or dollar they invest, they weigh each possibility and take several factors into consideration,” he said, stressing that the phrase ‘Reform or Perish’ is the pressing imperative for State governments.
‘Districts close to the national capital developing faster than other areas’
