1) Opposition to FDI - The opposition seems to be varying like in case of Bengal and Kerala. The left parties don't seem to have a unified stand. Moreover, the locally insisted conditions ("come only if you like our terms") often don't appeal to the investors. And India being a place where investment can as well move to other states who are more flexible (Jayalalithas are much more aggressive), the investor will invariably dump Kerala. Remember, the investor is the king here. Kerala cannot command a dominant position in IT, not yet.
2) The benefits not trickling down - It is indeed trickling down, though not as much as expected. To quote an example, I can cite the housing boom in Bangalore. This has given a boost to the entire industry (like steel, cement, construction materials, labour etc). The labourer in this case may not have made a fortune, but he is at least assured that he gets a pay of 150-200Rs. per day, and there is always work.
Of course, the Government can do its bit. How much money does the Government make by way of sales tax, income tax and professional tax to the local bodies. The Government can always spend this money on welfare, thsu further improving the peoples' lives.
3) No laternative to privatization?
Remember that India started with Socialism. 44 years of Socialism did not take us anywhere. And thats when we reluctantly switched over to the so-called capitalism. And it has only proven to be better than the former. The public sector has only eaten away this nation's wealth. You can't trust them with nation-building.
Welfare will and should continue. The Government can always take money from the rich by way of all those taxes and spend it on the welfare. But remember that there needs to be rich men around who can be taxed. You cannot milk unless there is no cow.
Regarding rubber, lets call it the power of representative lobbies. The rubber farmers, traders etc. are well organised hence can influence the Government. Likewise, the political parties represent the ordinary masses. This is perfect democracy. The unfortunate thing being, rubber planters and traders know what is good for them, ordinary masses do not know and their leaders don't care to explain.
3) Government Welfare
I am not against it. Sorry if sounded otherwise. What I meant was that, in order to support its welfare activities, the Government first needs money. If you are ruling a state that has no revenue, and huge debt, your social infrastructure will soon collapse.
4) Smartcity - Transparency
The problem now is that there is too much transparency. Everyone seems to know all clauses and now there is specific opposition to each clause. Read today's demands like 51% stake for the state etc. Do you think any investor will agree to it? Why would they? Why wouldn't they go to Bangalore where they can buy good land on the outskirts at 30 lakhs per acre and have peace of mind forever?