Political economy of resources and infrastructure in India

Abstract

This chapter examines the political dimensions of strategic resource challenges in India. Natural resource endowments (i.e. land, oil, gas and minerals) can serve as potent drivers of development. For better or worse energy, transport, mineral and land markets in India are shaped by national interest and do not behave as traditional goods markets, especially because of the lack of well-defined property rights. Therefore while markets are an essential part of any response to tighter resource supplies, governments also play a key role as a preeminent domain in this incomplete market setup. This has led to challenges concerning how local resource users are subject to exclusion and dispossession in the national interest of economic growth. For example, there has been an increase in the number of legal contests regarding land, water and mining rights which has increased inequality and local insecurities. Thus a ‘paradox of plenty’ exists in resource-rich countries such as India, where recent history has demonstrated that extractive endowments can disappoint if they are not well-managed. This chapter discusses the problems related to land acquisition and water resources and the possible solutions. © 2018 Elsevier Ltd. All rights reserved.