APRIL 02, 2014

By TIOL Edit Team

IT is refreshing to come across two new independent reports hailing Gujarat's inclusive economic growth and its potential for creation of jobs and wealth amidst growing crescendo of trash Gujarat model.

These two reports, coupled with several other such independent studies, would hopefully restrain Narendra Modi's baiters from tarnishing the impressive economic record of Gujarat attained both before and during Mr. Modi's tenure as Chief Minister. The fact is that Gujarat growth model would persist with or without Mr. Modi.

Before elaborating this issue, one needs to recall both independent reports and muck-racking campaign against Gujarat model, which is more inclusive than that of any other State.

An annual report titled ‘Economic Freedom of the States of India (EFSI) 2013' developed jointly by two reputed foreign institutions and a leading Indian economic consultancy has put Gujarat on the top of pedestal.

The report says: "Gujarat has widened its lead at the top of the economic freedom….Gujarat is not only the freest state, but it has also registered the fastest rate of improvement (from 0.46 to 0.65)."

It adds: "Gujarat has shown by far the best performance in economic freedom. Its score has risen from 0.46 in EFSI 2005 to 0.65 in EFSI 2013, by far the biggest increase among states."

EFSI estimates economic freedom in the 20 biggest Indian states, based to the extent possible on data for 2012, using a methodology adapted from the Fraser Institute's Economic Freedom of the World (EFW) annual reports.

Goldman Sach has reportedly released a report stating that the country can add 40 million jobs in the next decade if States follow flexible laws such as in Gujarat. This is not for the first time that this US investment banker had hailed Gujarat as well as its Chief Minister Narendra Modi.

In a report captioned 'Modi-fying our view: raise India to Marketweight' released during November 2013, Goldman stated: "Equity investors tend to view the BJP as business-friendly, and the BJP's prime ministerial candidate Narendra Modi (the current chief minister of Gujarat) as an agent of change."

It is the growing public perception that Mr. Modi can change the Indian environment from gloom and doom to hope and growth that has turned his bête noire into rampaging bulls. For them, Gujarat's success is red herring.

They have every right to target Mr. Modi. They should, however, not mix up their pathological aversion for Mr. Modi with their unjustified hatred for Gujarat growth model, which has benefited the entire country.

The State is the country's chemicals hub that produces many life-saving drugs and daily-use plastics and many other such essential products. It is the country's energy hub that accounts for the lion's share of petroleum products. It also generates surplus power that is used by other States. It is also gateway for import of millions of tonnes of coal, gas and other raw materials for the North-West and Central regions.

Gujarat is also a hub of labour-intensive industries such as diamond polishing, logistics and ship-breaking. Gujarat perhaps has the maximum number of ports. Gujarat's agricultural growth has been impressive as has been confirmed by reputed Indian and international studies.

The State is also a hub for manufacture of transport vehicles ranging from metro trains to Nano car. The list of notable facts is long. It is thus but natural for the World Bank, Asian Development Bank and other independent institutions to issue favourable reports on specific Gujarat projects.

This is not to suggest that Gujarat is free from scams and instances of bad governance. Some of the outcomes of poor governance have been documented by Comptroller and Auditor General. All said and done, Gujarat has always been a better governed State both under the BJP and Congress rules.

Mr. Modi's sworn enemies fail to understand the Gujarat model of development is built on the strength of certain economic values and culture. The key drivers of Gujarat model are Gujarati entrepreneurship and State cadre of IAS officers, who have a good track record of nurturing and operating core sector public enterprises. Gujarat has also been pioneer in framing policies, some of which later snowball into Centre-State litigation.

They cannot digest the fact that the State's inclusive growth including that of earthquake-devastated Kutch region has accelerated under his leadership. They are peeved at the fact that he has successfully marketed Gujarat as global destination for investment. Vibrant Gujarat is a household name.

None will dispute the fact that maximum number of environmental approvals issued by the Union Government during the last five years are for Gujarat-based industrial projects.

Narendra Modi's baiters have thus unnecessarily transformed their entrenched political battle into Hate Gujarat Campaign as is evident from anti-Gujarat model headlines that hogged limelight for almost an year.

Take this sample of headlines: Gujarat model will burst after polls: Rahul; Not an atom of development in Gujarat, says Arvind Kejriwal; Gujarat model is an exaggeration: Chidambaram; Arvind Kejriwal finds ‘bakwas' in Gujarat; Gujarat model and Bharat Nirman mere eyewash, says Akhilesh Yadav; Nitish Kumar targets Modi's Gujarat development model; Gujarat development media story: Arvind Kejriwal and Kejriwal tears into Modi's Gujarat model.

The critics should appreciate two unique features of inclusiveness of Gujarat model. First, Gujarat welcomes migrants from all States. The migrants send their remittances back home including Bihar. Gujarat is a prohibition State that has saved many families from ruin. Prohibition has also helped the Government reduce crimes including rowdy behaviour, which is considered as integral part of liquor consuming culture in India.

Both the supporters and opponents of Mr. Modi must realize that Gujarat is an eternal driver of not only its own growth but also that of other States that have strong economic linkages with it.