Critical Assessment of Tenancy Reforms in Independent India

Despite repeated emphasis in the plan documents, some states could not pass legislation to
confer rights of ownership to tenants. Few states in India have completely abolished tenancy
while others states have given clearly spelt out rights to recognized tenants and
sharecroppers. The tenancy reforms led to only a small percentage of tenants acquiring
ownership rights, but undoubtedly it has reduced the area under tenancy.
Impact of Tenancy reforms on productivity
Further, since the tenancy reforms coincided with green revolution, it was difficult to define,
how exactly it helped in productivity. However, some studies attempted to separate all the
other effects and concluded that: –
 There was a positive correlation between the growth in production and the progress of
tenancy.

 It led to changes such as greater social equity and self-confidence among the poor
tenants.

 However, some studies criticise it and say that due to poor resource base, tenancy
reforms could not led to growth in productivity.
The proportion of landless agricultural households in the rural area had stabilized. However,
at the same time, there has been an increase in the marginal and small holdings. However, the
increase in smaller holdings is also due to increase in population and lack of alternative
employment in rural areas.

NITI Aayog has also prepared a draft model Land Title Act, 2019. The draft model
recommends conclusive land titles and for providing of State guaranteed ownership.

Centre under the Ministry of Rural Development and State Governments/Union

Territories administration are in the process of implementing the  Digital India Land
records implementation programme 2.0

DE-RESERVATION

Section 29B(2C) of the Industries (Development & Regulation) Act, 1951 on de-reservation
periodically evaluates products /items reserved for exclusive production by Micro and Small
Enterprises. since 1991 through a forward looking Policy which led to de-licensing of items.
0.04.2015 have decided to deserve remaining 20 (Twenty) items presently reserved for
exclusive manufacture by MSE Sector.

The above policy initiatives have been taken to encourage greater investment, including the
existing MSME units, to incorporate better Technologies, Standard and Branch Building to
enhance Competition in Indian and Global markets for these products.

(i)Pickles and Chutneys, (ii) Bread, (iii) Mustard Oil (except solvent extracted), (iv) Ground
Nut Oil (except solvent extracted), (v) Wooden furniture and Fixtures, (vi) Exercise Books
and Registers, (vii) Wax Candles, (viii) Laundry Soap, (ix) Safety Matches, (x) Fire works,
(xi) Agarbatties, (xii) Glass Bangles, (xiii) Steel Almirah, (xiv) Rolling shutters, (xv) Steel
chairs – all types, (xvi) Steel tables – all other types, (xvii) Steel Furniture – all other types,
(xviii) Padlocks, (xix) Stainless steel utensils, (xx) Domestic utensils – Aluminium.

The result of de-reservation has been broadly positive. Experience shows that companies
engaged in small-scale production, which have survived the downturn of the ’90s, have
emerged stronger and even outperformed their counterparts in the large industry by a huge
margin. This is confirmed by the Economic Survey which mentions that, between 2001 and
2005, average production in the SSI unit increased by 10.6% while employment actually
grew by 4.4% unlike the case of medium and large industry during this period.
Similarly, smaller companies have done better than larger ones in terms of growth in net sales
and operating profits. In fact, companies with net turnover of Rs 1 crore to Rs 50 crore have
reported a 701% profit between 2001 and 2006 as compared to 169% for large companies.
And all this growth has taken place at a time when items were being taken off the reserved
list.

DISINVESTMENT (LIC, ONGC, GAIL)

 HPCL to ONGC
 Air India to TATA Group
 REC Ltd. to Power Finance Corp Ltd.