Gujarat: Developmental policies

Gujarat, a costal state in the western part of India with a population of around 6.03 crores, has made several headlines for being one of the most progressive states in India. Narendra Modi, CM of Guajarat has been featured in TIME magazine’s global poll on the 100 most influential people for transforming Gujarat and has been ranked third on the list. Gujarat today contributes as much as 16 per cent of industrial output and 22 per cent of total exports.

Gujarat has performed well above average on most of the socio-economic parameters. First, it has become one of the most industrially developed states with the industrial sector registering a growth rate of around 12 per cent. More importantly, it has emerged as the preferred destinations of entrepreneurs and as per RBI, ranks first in private corporate investments in the country.

Second, investor friendly policy regulation has gone a long way in making it the country’s business hub. As a matter of fact, Gujarat is the only state in India where the state government has framed industry specific policies in almost all key sectors, be it the industry, power, infrastructures, IT, agriculture or minerals.

Third, Gujarat has been successful in building infrastructures to support robust industrial developments. The state has 42 ports and 13 domestic and one international airport. Moreover, almost one-third of Delhi-Mumbai Industrial Corridor (DMIC) project is taking place in Gujarat alone. Six out of the proposed 20 industrial nodes on the Dedicated Freight Corridor (DFC) would be in Gujarat.

Fourth, while the other states and even the nation’s capital Delhi are struggling to meet the demand of electricity, Gujarat which was a power deficient a decade ago, has a power surplus of around 2000 MW and is selling power to other states. Interestingly, it is one of those few states where a power cut is an archaic phenomenon. Moreover, power generation capacity would further be increased by 3000 MW. Intelligent diversion of power source through the usage of solar power is one of the main factors behind such a massive turnaround. Since the inception of Solar Power Policy in 2009, the state has attracted investments worth Rs 8000 crore in generating solar power.

Fifth, Gujarat has been clocking eight per cent (thrice the national average) agricultural growth over the decade despite being a water-stressed state. A sustained programme of water conservation clubbed with agriculture-supporting infrastructure has helped the state achieve such high growth. The fact that 600 farmers from Gujarat were sent to Israel to learn agricultural technology speaks volumes about the state policy initiatives.

To put the sluggish Indian economy back on track, the other states should learn these lessons from Gujarat to replicate the success which would further help in achieving sustained economic growth in the long run.