Large-scale land concessions often generate a planning blight effect, which here refers to the uncertainty and deleterious effects on the social fabric and economic activities in targeted areas once a land allocation decision is made, or once negotiations between government and prospective investors have begun.

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Investors flock to Gujarat, Mr Modi says, for its well-built roads, the quick allocation of land, the plentiful supplies of gas, electricity and efficient bureaucratic support.

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In May the government suspended the allocation of all new land concessions.

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It causes an allocation of more capital into non-productive assets such as gold, collectibles, land, etc.

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