Modi’s leadership and the challenges for Gujarat

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Consider statistics obtained from the Central Statistical Organisation (CSO), state government and other published data, which tell a very different story. According to a December report published by none other than the high priest of individual liberty, free markets and peace, the Cato Institute, the average rate of growth of Gujarat’s gross domestic product (GDP) went from a good 5.8% (1980-90) to 8.15% (1991-99) to 10.14% (2000-06).

CSO estimates that when one looks at industrial development, the output value went up from Rs7,160 crore (1980-81) to Rs27,593 crore (1990-91) to Rs307,955 crore (2005-06) in the state, and the corresponding value for net value added by industry went up from Rs1,139 crore to Rs4,468 crore to Rs47,953 crore during the same period. Likewise, the Union ministry of industry, through its department of industrial policy and promotion, maintains a record of what it calls the Industrial Entrepreneurial Memorandum, under the Industries (Development and Regulation) Act, 1951, based on the actual permissions taken to set up industry in a state; this registered spectacular growth from Rs8,224 crore (1991) to Rs10,561 crore (2001) to Rs1.1 trillion in 2008. More recent studies by the International Food Policy Research Institute show the ongoing dramatic transformation in agrarian growth rates in Gujarat over the past decade, which has been lauded by it as not just record-breaking in the country but globally as well.

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