Asia’s leading brokerage firm CLSA praises Gujarat’s development yet again!
In a report ‘Gujarat: Growth to Sustain’, the authors note that Gujarat is not only among the fastest growing states in India but also has its unique model of development
Industrial growth thanks to industry friendly policies, present Government’s initiatives that have attracted industry and industrialists: CLSA
CLSA report notes Gujarat’s agriculture is shining including yield on food grains, wheat and cotton production as well as contribution to national agriculture GDP
Gujarat’s growth characterized by low reliance on Central Funds: CLSA
Gujarat’s development journey has drawn the attention of various reputed international think tanks and policy institutions. The most recent words of admiration for Gujarat’s growth come from CLSA Asia-Pacific Markets, which is Asia’s leading independent brokerage and investment group.
In a report titled ‘Gujarat: Growth to Sustain’ by Anirudha Dutta and Bhavesh Pravin Shah, it has been argued that apart from being one od the fastest growing most developed states in India, Gujarat also presents one of the most unique growth models. The report notes Gujarat’s success on agriculture and states that the growth model is more resilient due to its limited reliance on Central funds.
A Growth Model That is Sustainable:
It is essential for growth to be sustainable in order to benefit as many people as possible. The CLSA report has noted this sustainability in Gujarat’s growth story under the visionary leadership of Shri Narendra Modi, putting it in perspective with the rest of India.
Writing about India’s economic trajectory, the report notes that India grew differently and made the transition from being, “an agrarian economy to a services powerhouse without going through a phase where manufacturing dominates” and this has led to dependence on agriculture along with no large scale creation on employment.
However, in case of Gujarat the report makes the following observations:
- Gujarat has bucked this overall trend. Industry accounts for 40% of GSDP vis-à-vis 27% for the rest of India.
- The state scores well when compared to other industrialized states such as Maharashtra and Tamil Nadu, where share of industry in overall GSDP has been falling.
- Gujarat industry’s GDP contribution towards national industry GDP has risen from 8-8.5% in FY01 to 11-11.5% in FY11.
On the role of the state Government, the report notes:
- Among other things, industrial growth possible thanks to industry friendly polices.
- Present Government’s initiatives have attracted many an industries and industrialists.
JAI KISAN- CLSA Report Notes Gujarat’s Success in Agriculture
Agriculture is the life force of our nation. Even today, most number of people earn their livelihood from the primary sector. No growth can be considered complete till our agrarian economy receives an impetus.
When Shri Narendra Modi assumed office in 2001, Gujarat was never known for its agriculture growth. With perpetual drought, lack of perennial rivers among other things, no one thought agriculture could thrive in Gujarat. This was when Shri Modi ushered in a paradigm shift in the approach to governance and gave an immense boost to agriculture. Initiatives such as Krishi Mahotsav brought about revolutionary change in the lives of the farmers and today the results are for al to see- while the rest of India’s agriculture has failed to grow beyond 3%, Gujarat has maintained consistent agrarian growth of 11%!
CLSA notes these changes in its report and states:
- Gujarat’s GSDP from agriculture is 13%, which is considerably higher than industrialized states like Maharashtra and Tamil Nadu.
- In the last decade, Gujarat has doubled agriculture GDP contribution to national agriculture GDOP.
- Gujarat’s contribution to wheat and cotton production has improved over past few years.
- Marked increase its yield in food grains.
Low Reliance on Central Funds!
Shri Narendra Modi has repeatedly stated that the development in Gujarat is due to the efforts of 6 crore people of Gujarat. It is collective efforts and teamwork that is driving the growth engine of the state. In its report, CLSA notes that Gujarat’s reliance on central funds is low. The state’s tax revenue as percentage of total tax revenue stands at the highest in the country with 84%,
Furthermore, it states that Gujarat’s share in central devolution has remained unchanged at 3.4%, lower than states such as Maharashtra, Tamil Nadu, and Andhra Pradesh etc.
This report can be one of the many fitting answers to those anti-Gujarat elements who have been shouting from the roof top claiming their so called hand in the state’s development in the last decade when the numbers suggest a very different story!
Other Salient Points:
The CLSA report on Gujarat makes several other points on the vibrant atmosphere of development in the state. Some of the points they note are:
- Gujarat is one of the best states in terms of improved governance in the past decade within the developed states.
- Results visible in various sectors from literacy, PCI, drinking water facilities.
- Improved Governance will help Gujarat enhance the social sector.
This is not the first time CLSA has praised the development in Gujarat. Its May 31st 2012 issue of ‘GREED & fear’ authored by renowned strategist Mr. Christopher Wood lauded Gujarat’s growth story and contrasted it with the pessimism that set in due to policy paralysis from New Delhi.
Other leading international bodies that have praised the development in Gujarat under the inspiring leadership of Shri Narendra Modi include world’s oldest and leading think tank Brookings Institution, leading business daily the Financial Times and the independent USA Congressional Think Thank, which called Shri Modi the ‘King of Governance.’ In March this year he appeared on the cover of TIME Magazine in a story titled, ‘Modi Means Business.’
Shri Modi has said many times that the only thing he thinks of is the development of Gujarat and it is his dreams and inspiring leadership that has put Gujarat on the world map of development. Today, when we read reports such as these, we get an indication of how his dreams have translated into a reality, giving the people of Gujarat a golden decade of development.