Gujarat has registered double-digit growth since the 10th Plan (2002-07). Volatility of growth has declined in Gujarat, a reflection of agricultural performance. Triggered by roads, electricity (the Jyotigram Yojana) and water (inter-basin transfer of water), there has been agricultural diversification and commercialisation in many historically deprived districts. Dairy, animal husbandry, horticulture are examples.
Gujarat's economic growth is not about large-scale industry. However, there has been an increase in the number of factories and MSME (micro, small and medium enterprises) clusters. The share of manufacturing in GSDP has declined. It is the non-manufacturing industry and services that have increased. Therefore, Gujarat's growth is also about agriculture, MSME s, non-manufacturing industry and services.
Gujarat does not do well in social sectors. Poverty ratios show sharp decline in rural poverty between 2004-05 and 2009-10. While urban poverty hasn't declined that much, if rural poverty has declined sharply, growth must have been inclusive. Nor is there any evidence that inequality has increased.
In social sectors, there has been sharp decline in the number of out-of-school children between 2006 and 2011. Those improvements also come across in National University of Educational Planning and Administration's DISE (District Information System for Education) dataset.
In health, the percentage of institutional deliveries has risen from 55.87 per cent in 2003-04 to 93.5 per cent in 2011-12. Immunisation coverage has increased. Extremist violence has been contained despite geographical proximity with violence-prone states. And despite the emphasis on industrialisation, refineries and port-led development, there have been no major environmental disasters along the coast or elsewhere.
The growth story is not about increasing public expenditure but efficiency of public expenditure. It is more about creating an environment for private expenditure. There is an important e-governance component too, discretion having been removed for assorted certificates. There is also decentralisation down to talukas, facilitated by Gujarat's long tradition of Panchayati Raj Institutions (PRIs) and participatory planning. Since 2003, Chintan Shibirs are also illustrative, ensuring the government does not work in silos and departments and enabled cross-fertilisation of ideas which resulted in better formulation of schemes and better implementation. Transfers, postings and implementation have become more insulated from political interference. The governance story is a standard development template that any state ought to adopt and implement.
Chief Minister Narendra Modi's leadership in social sector push, empowerment of bureaucracy and insulation from political interference, clamping down on corruption, decentralisation, emphasis on private sector and message of pride in Gujarat's growth and development bear his personal stamp. This part is person-specific and not systemic, a phenomenon also true of some other fast-growing states. Objective analysis requires that credit should be given where its due.
Why Change the Topic...............what happened about your claim of making poor rich under leadership of Modi in Gujarat...............
Kerala has less than 15% Poverty.................Non of the states can be compared with Kerala in any of its achievements..........
Kerala lopsided development is rooted in religious biases. Gulf countries provide easier visas to muslims and christians. Local government has killed any prospect of local Industrial or agricultural growth.
Those poverty removal you point out in Kerala is distributed among Christians and Muslims in Kerala.
Kerala Hindus as still the poorest in the state and in India.
