Leading international brokerage house CLSA applauds development in Gujarat.
Mr. Christopher Wood, who has made a mark as an award winning business strategist praises Gujarat’s growth trajectory.
In the past Economist, TIME, Brookings Institution, Financial Times and a USA Congressional Think Tank have praised development in GujaratGujarat’s development journey in the past decade has everyone ranging from renowned think tanks, scholars to leading journals of the word. Recently CLSA, one of the most highly rated equity brokers and financial services groups has lauded the progress in Gujarat. In the issue dated 31st May of ‘GREED & fear’ authored by world renowned strategist Mr. Christopher Wood, Gujarat’s growth story has been enormously praised and even contrasted with the air of pessimism that has set in on account of the severe policy paralysis in the rest of the nation.
Sharing some quotes from ‘GREDD & fear’, authored by Christopher Wood.
“GREED & fear has been hearing the hype about Gujarat for some time. But a brief visit to the state this week confirms that the praise is warranted.”
“(Gujarat) marks such a contrast to most of the rest of the country that it is no wonder that Gujarat has become the poster child for economic development in India.”
On Gujarat’s infrastructure-
“The roads in the former state capital Ahmedabad are wide and clear while, perhaps most impressive given India’s current circumstances, Gujarat is the only state to enjoy a power surplus. It is also the only state with an integrated gas grid.”
On Gujarat’s development-
“Also, interestingly, Gujarat has not prospered on the back of the software-BPO bandwagon.”
“Gujarat’s economic dynamism has been based on a broader more diversified range of sectors, be it traditional areas of strength like textiles, pharmaceuticals and ports or more recently autos where the state has started to attract critical mass after Tata Motors set off the trend with its decision in late 2008 to move the production of the Nano from the anarchic chaos of West Bengal to Sanand in Gujarat. The word is that it only took 48 hours for Tata to get permission from the state government. There are now six major auto manufacturers having or planning plants in Gujarat.”
On Chief Minister Shri Narendra Modi-
“It really seems to be the case that Chief Minister Narendra Modi does run the state like a chief executive officer.”
On functioning of the state Government-
“Businessmen report that investment approvals are remarkably swift while the state government is viewed as both clean and highly efficient with the word “pro-active” most often applied to describe the functioning of the bureaucracy.”
On the state of governance and economic bloom in the rest of the nation, Mr. Wood has some extremely sharp observations.
On the India Story-
“Not surprisingly, the infectious optimism has entirely disappeared from the Indian story.”
On Inflation worries-
“If inflation is still a problem anywhere in Asia, it is clearly in India.”
On the future of India’s growth under current disposition-
“…no one GREED & fear met this week has any confidence that the investment cycle is about to turn up.”
“The by now familiar problems remain gridlock in the power sector, with a continuing shortage of domestic coal production; the ongoing freezing up of the bureaucracy because of the continuing fallout from the corruption scandals and finally the damage inflicted by high interest rates.”
“…Something is required from policymakers in Delhi to kick start a new cycle.”
On possibility of economic reforms-
“…The consensus view in India is that a decisive change in policy is only possible after the next general election given the current reality of a dysfunctional coalition, and this is not due to be held until 2014.”
This report from CLSA marks a continuation of the praise Gujarat’s development under Shri Narendra Modi has attracted from international bodies. Back in September 2011, an independent Congressional think tank called Shri Modi the ‘King of Governance’ for his stellar efforts in streamlining economic process, removing red tap and curtailing corruption that has made Gujarat an economic powerhouse.
One of USA’s oldest and leading think tanks, Brookings Institution praised Gujarat’s decade of growth, suggesting that its growth is faster than almost any place on the Earth, even most of China. In March 2012, TIME magazine put Shri Modi on their cover page with a story titled, ‘Modi Means Business’ that was titled by their South Asia bureau chief Jyoti Thottam. Just recently Financial Times noted how the people of Gujarat, specially its youth are optimistic about the growth in the state.
These praises yet again indicate how under the leadership of Shri Narendra Modi, Gujarat is marching ahead with the mantra of ‘Sabka Saath, Sabka Vikas’ (All together, growth for all).