Come, feel the vibrancy of Gujarat: Modi- Interviews-Opinion-The Economic Times
Come, feel the vibrancy of Gujarat: Modi
17 Oct, 2008, 0249 hrs IST,Ashwin Walunjkar & Mitul Thakkar, ET Bureau
He just got a new car, but he doesn’t see it as a vehicle to escort prospective investors to his state. Gujarat chief minister Narendra Modi will soon embark on ambitious roadshows, showcasing the state which is arguably the top destination for domestic investments (26% as per an RBI report) to attract corporates. After bagging Tatas’ Nano project last week, beating other states on the way, Mr Modi tells that Gujarat’s magnetism alone would drive investments
Excerpts of an interview:
You wanted to turn Gujarat into Singapore. Now, Detroit seems closer....
Comparison with Singapore, Detroit or Hong Kong is necessary. It is for the common man to make his journey from the known to the unknown (levels of development) easy. It is purely symbolic. It is just to say that Gujarat is following the global parameters of development. If there is something good happening elsewhere, we should adopt it.
Similarly, the world is too talking about Gujarat. The disaster management and rehabilitation policies framed after the earthquake in Kutch have become a model for the world. So, we are both learning from the world as well as contributing to it in our own way.
What was more exciting - victory at the assembly elections last year or getting the Nano project?
The two are different. Election victory brought in a sense of responsibility. There was no time to rejoice. Nano, well, I don’t see it in Gujarat’s context. I don’t even see it as an achievement by Narendra Modi. It used to pain me when reports indicated that the project was facing problems in Singur. Then there were talks that other countries too are ready to host the world’s small car project. I was startled.
I wanted the project to come up in West Bengal, but when it became clear that it would eventually move out of that state, I became proactive. I took this as a national responsibility and assured Ratan Tata while extending an invitation to set up the project in Gujarat
What was Tatas’ reaction when you put forth a proposal?
It never reached a level of preparing a proposal. It was not like when a girl and a boy meet and a marriage proposal comes up (laughs). Their officials were surveying land all over the country. They came here too and met my officials. I was in direct touch with Ratan Tata all along. Nano coming to Gujarat was a routine activity. The real effect came after we announced it. The effect was electrifying.
Gujarat would host the fourth Vibrant Gujarat Global Investors’ Meet in January. What response do you see post Nano?
Vibrant Gujarat is a novel idea. We have been holding these biennial meets since 2003. There is competition between states for getting investments.
Unfortunately, the competition is all about incentives. This had been happening since the ‘80s, and I wanted to change this. Thus came the idea of a global summit. My emphasis is ‘come, feel Gujarat’. Investments will come later. First, meet the people, know the government’s functioning and feel the vibrancy of the state.
It was a strategy to showcase the state’s strengths. Instead of governments going to investors in other states, I wanted investors to come here. I was clear. There won’t be any incentives, but I would provide business environment, proactive governance, single-window clearances etc.
I don’t think, incentives draw investors. It is the experience of a colleague in the industry that leads to an investment decision. Earlier, an investor would go around states expressing his wish to invest. In Gujarat, he just has to sign a paper (MoU) and it is the responsibility of the state government to approach him.
From an investment commitment of a few thousand crores in 2003 to Rs 4.6 lakh crore in 2007. What are your expectations now?
We have never set a target. Instead, we have created focus areas. If in 2003, it was human resource development, in 2007 it was SEZs. This year, our focus areas are special investment regions (SIRs), Delhi-Mumbai Investment Corridor (DMIC), Gujarat International Finance Tec City. What can we expect? Enhanced economic activity in the state, in the sense, more jobs. I am confident, it would be a success this year too. After all, it’s all about Brand Gujarat.
How would you showcase the state?
These roadshows are not intended to impress investors. It is a great learning experience for me. I try and understand the needs of the corporates. For example, when I went to China, I studied the SEZ model there and came back to implement it.
You managed to get all biggies last time - Ratan Tata, Mukesh Ambani, Kumarmangalam Birla, K V Kamath. Who all are expected this time?
Vibrant Gujarat summit is like Davos (the venue of World Economic Forum annual meet). People make it a point to attend it. It is too early to say who all will come. Letters will be sent out...there is a procedure.
There are talks of auto majors lining up after the success of Nano. Who are the big players likely to invest?
I don’t comment on things before they happen. But I can tell you, DMIC has evoked a lot of interest. A lot of MNCs have been making inquiries. One thing I must say, Japanese companies are particularly interested in Gujarat.
This has been going on since one year. Officials from various companies come here to survey the land and discuss the project. At this point, I cannot say, which particular company will come. In this competitive world, any comment from me would alert others and create competition. I don’t want to do that. But, things have been moving, even before Nano.
