Gujarat among fastest developing states, its growth model most unique!

Published By : Admin | October 17, 2012 | 19:07 IST

Asia’s leading brokerage firm CLSA praises Gujarat’s development yet again! 

In a report ‘Gujarat: Growth to Sustain’, the authors note that Gujarat is not only among the fastest growing states in India but also has its unique model of development 

Industrial growth thanks to industry friendly policies, present Government’s initiatives that have attracted industry and industrialists: CLSA 

CLSA report notes Gujarat’s agriculture is shining including yield on food grains, wheat and cotton production as well as contribution to national agriculture GDP 

Gujarat’s growth characterized by low reliance on Central Funds: CLSA

Gujarat’s development journey has drawn the attention of various reputed international think tanks and policy institutions. The most recent words of admiration for Gujarat’s growth come from CLSA Asia-Pacific Markets, which is Asia’s leading independent brokerage and investment group.

In a report titled ‘Gujarat: Growth to Sustain’ by Anirudha Dutta and Bhavesh Pravin Shah, it has been argued that apart from being one od the fastest growing most developed states in India, Gujarat also presents one of the most unique growth models. The report notes Gujarat’s success on agriculture and states that the growth model is more resilient due to its limited reliance on Central funds.

A Growth Model That is Sustainable: 

It is essential for growth to be sustainable in order to benefit as many people as possible. The CLSA report has noted this sustainability in Gujarat’s growth story under the visionary leadership of Shri Narendra Modi, putting it in perspective with the rest of India. 

Writing about India’s economic trajectory, the report notes that India grew differently and made the transition from being, “an agrarian economy to a services powerhouse without going through a phase where manufacturing dominates” and this has led to dependence on agriculture along with no large scale creation on employment. 

However, in case of Gujarat the report makes the following observations:

  • Gujarat has bucked this overall trend. Industry accounts for 40% of GSDP vis-à-vis 27% for the rest of India.
  • The state scores well when compared to other industrialized states such as Maharashtra and Tamil Nadu, where share of industry in overall GSDP has been falling.
  • Gujarat industry’s GDP contribution towards national industry GDP has risen from 8-8.5% in FY01 to 11-11.5% in FY11.
 

On the role of the state Government, the report notes:

  • Among other things, industrial growth possible thanks to industry friendly polices.
  • Present Government’s initiatives have attracted many an industries and industrialists.
 

JAI KISAN- CLSA Report Notes Gujarat’s Success in Agriculture 

Agriculture is the life force of our nation. Even today, most number of people earn their livelihood from the primary sector. No growth can be considered complete till our agrarian economy receives an impetus.

When Shri Narendra Modi assumed office in 2001, Gujarat was never known for its agriculture growth. With perpetual drought, lack of perennial rivers among other things, no one thought agriculture could thrive in Gujarat. This was when Shri Modi ushered in a paradigm shift in the approach to governance and gave an immense boost to agriculture. Initiatives such as Krishi Mahotsav brought about revolutionary change in the lives of the farmers and today the results are for al to see- while the rest of India’s agriculture has failed to grow beyond 3%, Gujarat has maintained consistent agrarian growth of 11%!

CLSA notes these changes in its report and states:

  • Gujarat’s GSDP from agriculture is 13%, which is considerably higher than industrialized states like Maharashtra and Tamil Nadu.
  • In the last decade, Gujarat has doubled agriculture GDP contribution to national agriculture GDOP.
  • Gujarat’s contribution to wheat and cotton production has improved over past few years.
  • Marked increase its yield in food grains.

Low Reliance on Central Funds! 

Shri Narendra Modi has repeatedly stated that the development in Gujarat is due to the efforts of 6 crore people of Gujarat. It is collective efforts and teamwork that is driving the growth engine of the state. In its report, CLSA notes that Gujarat’s reliance on central funds is low. The state’s tax revenue as percentage of total tax revenue stands at the highest in the country with 84%,

Furthermore, it states that Gujarat’s share in central devolution has remained unchanged at 3.4%, lower than states such as Maharashtra, Tamil Nadu, and Andhra Pradesh etc.

This report can be one of the many fitting answers to those anti-Gujarat elements who have been shouting from the roof top claiming their so called hand in the state’s development in the last decade when the numbers suggest a very different story!

Other Salient Points:

The CLSA report on Gujarat makes several other points on the vibrant atmosphere of development in the state. Some of the points they note are:
  • Gujarat is one of the best states in terms of improved governance in the past decade within the developed states.
  • Results visible in various sectors from literacy, PCI, drinking water facilities.
  • Improved Governance will help Gujarat enhance the social sector.
 

This is not the first time CLSA has praised the development in Gujarat. Its May 31st 2012 issue of ‘GREED & fear’ authored by renowned strategist Mr. Christopher Wood lauded Gujarat’s growth story and contrasted it with the pessimism that set in due to policy paralysis from New Delhi.

Other leading international bodies that have praised the development in Gujarat under the inspiring leadership of Shri Narendra Modi include world’s oldest and leading think tank Brookings Institution, leading business daily the Financial Times and the independent USA Congressional Think Thank, which called Shri Modi the ‘King of Governance.’ In March this year he appeared on the cover of TIME Magazine in a story titled, ‘Modi Means Business.

Shri Modi has said many times that the only thing he thinks of is the development of Gujarat and it is his dreams and inspiring leadership that has put Gujarat on the world map of development. Today, when we read reports such as these, we get an indication of how his dreams have translated into a reality, giving the people of Gujarat a golden decade of development.

 

References Cited:

https://www.business-standard.com/india/news/five-reasonsgujarat-is-differentother-states-clsa/191500/on 

https://blog.offstumped.in/2012/10/11/gujarat-polls-2012-clsas-state-of-states-report-on-gujarat/ 

https://www.narendramodi.in/leading-international-brokerage-house-clsa-applauds-development-in-gujarat/

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Swar Sadhana, Manokamana, Aradhana - after such an auspicious beginning, it would have been wonderful if your program had continued. Greetings to all of you.

I extend my regards to all viewers of Republic TV Network, which now broadcasts in many languages. I also welcome all companions who have come to participate in this summit. In 24-hour news channels, breaking news holds great importance. And nowadays, if you look anywhere in the world, the entire world seems to be in breaking news mode. Amidst such hustle and bustle, you are hosting and participating in this summit, and therefore you deserve special congratulations. This time, your theme of discussion is equally significant: Great Power India: Nation First.

Friends,

Our scriptures say: Yato Dharmastato Jayah! - meaning, the root of victory and strength is Dharma. And Dharma means duty, Dharma means justice, Dharma means equality, Dharma means dialogue, Dharma means compassion. This very essence is embedded in the spirit of Nation First. India views its power through this lens, weighing it on this scale.

Friends,

India has another unique quality, which the world has now acknowledged. We are not a nation that reacts hastily to momentary events. We are a nation that has witnessed both development and destruction, endured them as well. We are a nation with the memory chip of ages embedded in our consciousness - a nation with the memory chip of millennia. That is why what India is doing today - and I say this with full responsibility - what India is doing today will write the future of the next thousand years. This is India’s greatest guarantee to the world. India is not only a fast-growing economy, it is also a credible economy. Alongside being a rising power - and you even stretched the dictionary to call it a superpower - I would certainly say that India is a reliable power. Just a few days ago, I returned from the G7 Summit, and every leader, every country understands very well that for today’s India, Nation First is the greatest mantra, the highest principle.

Friends,

Just a few days ago, our government completed 12 years. Arnab even compelled you to clap for that. If you weigh the achievements of the past twelve years, you will find that at the core of every decision, every step, every effort lies the spirit of Nation First. From the Swachh Bharat Abhiyan to Make in India, from emphasizing khadi to encouraging local products - all these initiatives succeeded because the people of the country placed the nation above all and fulfilled their duty. I salute the citizens of this country.

Friends,

Here with us is our companion, Shri Sridhar Vembu ji. When our entrepreneurs walk with the spirit of Nation First, when they set their goals by understanding the needs of the nation, institutions are built and the country prospers. I don’t know how much has been discussed here about Shri Vembu ji’s work, but recently I went to VivaTech in France. There were nearly 1.5 to 2 lakh young people there. As I and the President of France walked through different stalls to see the innovations of the youth, we came to the Zoho stall. I was astonished and filled with pride to see the crowd of European youth gathered there, eager to understand what this new creation was. Perhaps in India it is not discussed as much, but what I saw in France was remarkable. Congratulations to you.

Friends,

The impact of Nation First in government policy and decisions can be seen in our tribal regions. I am not here to deliver philosophy, but let me share a few light examples so you can understand how work happens. I speak of tribal areas - a population of more than 100 million, the tribal society. We all know that for decades, Maoist terror had entrenched itself there. Even in the 21st century, these terrorists did not allow a single facility to reach those areas. No government vehicle could pass through; they would be riddled with bullets. Many governments came and went, generations passed, and it seemed this misfortune of violence would remain forever. You can imagine - between 2004 and 2014, in those ten years, due to Maoist terror, more than 17,000 violent incidents occurred, and nearly 7,000 lives were lost.

Friends,

For you, today’s headline or half-hour TV debate might be that Maoist terrorism has ended. But things don’t happen like that. It requires immense effort, and that is why I want to explain. Nowadays, some people keep waving the Constitution, but when they were in government, in Naxal-affected areas, even uttering the word “Constitution” could get you shot. At that time, they sat silently, their hands trembling, unable to hold up the Constitution. The Congress was hardly affected by that painful situation.

Friends,

After 2014, we moved forward with the spirit of Nation First to change the situation. We did not just talk, we did not just announce, we acted. We resolved to uproot Naxalism-Maoism completely, and today the whole country can see the result. Maoist terrorism in India is now counting its final breaths.

And friends,

Often the final outcome is so vast and significant that the hard work behind it goes unnoticed. I want to especially tell Republic TV viewers about this.

Friends,

In those Naxal-affected areas where even going out in daylight would terrify ordinary people - fearing abduction, extortion, or looting - where even speaking of development was impossible, we advanced with a pledge of progress. In the past 12 years, our government has built more than 12,000 kilometers of roads in such regions. Many times, our construction equipment was burned, contractors were chased away. If 25 people worked on a road, 200 police personnel had to guard them so the work could continue. We did all this because we had resolved to do it.

Friends,

We built more than 9,500 mobile towers. Earlier, even one tower could not be installed, and if installed, it would be destroyed. Because they always wanted to fuel anger. We brought mobile connectivity to nearly 45,000 villages. In Naxal-affected districts, more than 1,800 bank branches were opened. Around 75,000 banking correspondents and more than 6,000 new post offices were established. We did not rely only on bombs, guns, and bullets, friends - we invested every ounce of strength given by God to win hearts.

Friends,

With firm resolve, we went into Naxal-affected areas to fulfill the hopes and aspirations of ordinary people. You will be astonished - a notorious Naxalite, with a bounty of crores on his head, his mother received a ration card from us for the first time. Her son never allowed her to get one, because he wanted to run his terror regime. There are countless such incidents. I was shocked. And the government of that time sat silently, blind to the Constitution. But the result of all these efforts was a new wave of trust among the people. Today, look at Bastar - instead of bombs and guns, Bastar Olympics are celebrated with great enthusiasm. Two editions have already been held. In the first, more than 1.5 lakh youth participated, and in the second, nearly 4 lakh youth joined. Where once there was terror, now talent is finding opportunity, and sports are flourishing.

Friends,

One of the greatest achievements of these 12 years of service has been building an India filled with hope and aspiration, rising out of despair.

Friends,

Naxalism may have been concentrated in certain areas, but its pain was felt across every corner of India. And when news began to spread that Naxalism was ending, the sense of trust was not limited to those affected regions - it spread across the entire nation. In the ten years before 2014, under the Congress government, the discontent was not only about governance. The despair was far deeper. The nation had lost hope. People felt nothing could change, nothing could improve.

Friends,

In the past 12 years, India has transformed despair into hope, and this gives me the greatest satisfaction. Today, everyone feels that with a little more effort, things can be achieved. Gone are the days when the only refrain was “It cannot happen, it cannot happen.” That era has passed. Today, the spirit is “It will happen.” This new confidence is India’s true achievement, and this is real power. Challenges remain, and they always will. Challenges are shape-shifters, appearing in new forms. But whatever form they take, we will fight and we will win. When the nation moves forward with the belief that “it can be done and we will do it,” dreams are fulfilled.

Friends,

I want to speak here about more than 100 districts and over 500 blocks in India. These were left behind on every parameter of development, and earlier governments had stamped them as “backward districts” and “backward areas.” We lifted these vast regions out of the despair of backwardness and ignited aspirations for development. First, we changed their identity. We said these are “aspirational districts,” these are “aspirational blocks.” We created programs for aspirational districts and aspirational blocks, and the government began working meticulously on every parameter of development. In each district, we identified three aspects to overcome, in others six aspects, and focused efforts began. Today, these aspirational districts and blocks are driving the overall growth of states. Earlier, they dragged growth backward. These districts had large populations living in poverty and deprivation. In recent years, 250 million poor people have defeated poverty, and aspirational districts have played a major role in this.

Friends,

We see that when one person is cured of illness, it is not just that individual who recovers - the whole family feels relief. Similarly, when a son or daughter achieves something, it is not just their achievement, but the entire family is filled with pride and confidence. In the same way, when someone rises out of poverty, the entire society benefits, the nation benefits. When 250 million people have come out of poverty and entered the neo-middle class, the benefit is not limited to those families. The middle class also gains, because these are new consumers who drive the economy, ultimately creating opportunities for the middle class. Thus, poverty reduction is not merely a matter of welfare - it is a story of expanding opportunities, a source of new aspirations.

Friends,

The vast middle class that has emerged in the country over the past 12 years has been a major priority for the government. For the ease of living of the middle class, the government has worked at every level. Take the dream of owning a home. Every middle-class family desires to have their own house. In 2014, if a family wanted to buy a home, home loans came with double-digit interest rates. Today, loans are available from banks at 7–8 percent interest. Earlier, getting a loan was like winning a war, requiring immense effort. Today, it is possible from the comfort of one’s home. Here in Delhi-NCR, people know how thousands of urban middle-class homes were stuck incomplete. Families had paid their life savings to builders, who showed glossy pamphlets and dreams, but the houses were never delivered. Families had to pay rent while waiting endlessly for their homes. It was a terrible situation. To complete these stalled projects, we created a special fund of ₹25,000 crore. You will be glad to know that nearly 60,000 long-delayed homes have now been delivered across the country.

Friends,

Another aspect that affects daily life is connectivity and transport. Today, if you look at social media, tourists from around the world are amazed by our metro system.

Friends,

In 2014, about 2.8 million people traveled daily by metro. Today, nearly 12.8 million people travel by metro every day. Now, high-speed trains like Vande Bharat, Namo Bharat, and Amrit Bharat are connecting the nation. With better roads and highways, not only is time saved, but vehicle maintenance costs have also reduced. In recent years, the number of airports has doubled. This has given the middle class in many smaller cities the opportunity to fly for the first time.

Friends,

In the past 12 years, India has not only increased the earnings of the middle class but also their savings. In 2013–14, income up to about ₹2 lakh was taxable, and the middle class bore that burden. Today, income up to ₹12 lakh is tax-free. In other words, tax-free income has multiplied several times.

Friends,

GST reforms have also brought great convenience to the middle class. Filing taxes has become easier, saving both time and money. Income tax returns can now be filed from home, and even settlement issues are handled in a faceless manner.

Friends,

A major expense for middle-class families is treatment for diabetes and other lifestyle-related conditions. At Jan Aushadhi Kendras, such medicines are available at an 80 percent discount. If earlier you spent ₹1,000, today you spend only ₹200, saving ₹800. Over the years, this has resulted in savings of nearly ₹40,000 crore for countless families. Another significant portion of the middle-class budget goes toward healthcare for the elderly. Today, every citizen above 70 years of age is entitled to free treatment up to ₹5 lakh.

Friends,

It is human nature to forget past difficulties when conveniences become routine. Earlier, you paid tax on ₹2 lakh income; now, up to ₹12 lakh is tax-free. Yet applause comes only when reminded. On the other hand, if a bus or train is delayed, complaints pour in. This is the most vocal class.

Friends,

As I said, people forget old troubles. You may not even remember the difficulties once faced in getting a driving license or passport. Earlier, it was a struggle. Today, obtaining a driving license is easier, and passports are usually issued within three days.

Friends,

I know the way our government works has raised people’s aspirations. Once a demand is met, people immediately seek something better, something upgraded. If earlier the demand was for a new road, once built, the next question is: when will the metro arrive? Earlier, expectations were that trains should arrive on time and provide clean seating. Today, the demand is: why isn’t Vande Bharat running on our route?

Friends,

Some see this as dissatisfaction, but it is aspiration. In fact, even the Congress party constantly says, “Modi ji, this should happen, that should happen.” They trust that if anyone can deliver, it is this government.

Friends,

Aspirations arise only where people believe dreams can be fulfilled. This is the aspiration of India’s youth, poor, and middle class. Today, it is the driving energy of BJP-NDA governments.

Friends,

On one side, a large section of the nation is aspirational. On the other side, there is a political group whose life mantra has become “Always Against.” This group is filled with chronic dissatisfaction. Let me share some symptoms so Republic TV viewers can recognize them. They will say, “Why doesn’t this place have 24-hour electricity?” But the next day, they protest against dams, solar parks, thermal plants, or nuclear projects. One day they ask why there is no electricity, the next day they oppose power generation. These are the same people who once opposed mineral mining, but today ask where India’s rare earth mineral reserves and supply chains are, and why India doesn’t have an EV ecosystem like other countries. They once debated “data versus flour,” but now demand to know what India has done in AI. In one breath, they say AI should have advanced further, and in the next, they oppose data centers and semiconductor plants, listing endless drawbacks on social media, TV debates, and newspapers.

Friends,

These people bring up corruption indices from around the world to put India in the dock. Their ecosystem’s media amplifies it 24/7. But when action is taken against corruption, they are the first to cry foul, claiming raids and investigations are harassment. They question why action is taken now, why not then, why against A and not B. This is their game.

Friends,

It is vital for the nation to understand their character. Especially our youth, and Gen Z in particular, must recognize them quickly. Otherwise, as I say, “Suryavanshi has arrived,” and he explains swiftly.

Friends,

These people claim the armed forces lack freedom and weapons. But when the government makes a defense deal or buys modern arms, they are the first to question why. They challenge India’s diplomacy worldwide, but when India builds infrastructure projects for diplomacy and security, they protest loudly.

Friends,

At this crucial juncture, India must identify such people, understand their flawed arguments, and remain alert. Unfortunately, today the main opposition party, Congress, has been taken over by such elements. To imagine Congress speaking of Nation First, as it did in Gandhi ji’s time, is now a false dream.

Friends,

The world today is challenging old paradigms, and the scale of disruption is immense. But these challenges also bring new opportunities. Every youth, entrepreneur, innovator, and startup in India must focus on these opportunities. The government, with the spirit of Nation First, stands fully with the people. India is now riding the Reform Express. This momentum will only accelerate. From this Republic TV platform, I say again: our dreams are vast, and our efforts will be equally immense. The collective endeavor of 1.4 billion Indians will build a developed India. And I assure you, you will see this developed India with your own eyes. It will not be left for future generations to wait. With this confidence, I once again extend my best wishes to Republic TV, its viewers, and all of you. Thank you very much!