The Hindu Business Line : Economy contributed to Modi’s win

Gandhinagar, Dec 24 A booming economy, women-oriented welfare steps and youth power are seen as significant contributing factors for the BJP’s big win in Gujarat even as listed companies of the State saw their share prices going up at the stock exchanges today, demonstrating market sentiments and confidence in the development plank of the State Government led by the Chief Minister, Mr Narendra Modi.

After a record win, Mr Modi, hailed as “Vikas Purush” (Development Man), was formally re-elected as Leader of the Bharatiya Janata Legislature Party (BJLP) here today. His government will be sworn in tomorrow. The new government is expected to announce a few new policies, such as those in agriculture, wind power and further power reforms, in the coming months.

“We expect the new agriculture policy to be innovative and modern. The 11 new ports expected to come up during the Eleventh Five-Year Plan period are expected to boost the economy further. The power plants in the pipeline now would also make Gujarat self-sufficient in this sector but we should forget subsidies in electricity and learn to live with the new realities. Also, we expect the BJP Government to accelerate implementation of schemes for widows, children for an inclusive growth,” Ms Paruben Jaikrishna, President of Gujarat Chamber of Commerce and Industry (GCCI), told Business Line.

Applauding the development initiatives taken by the Modi Government so far, eminent economist Dr Bakul Dholakia, former Director of IIM-A and now an advisor to the Adani Group, said this “positive side” has paid rich dividends to the ruling party. These initiatives encompassed all the sectors, both economic and social, and bridged the so-called urban-rural divide. Gujarat voted positively for the good governance and performance of the Modi Government and demolished the myth of anti-incumbency. “If you perform well, the people will certainly vote you back.”

Dr Dholakia expected the State Government to now focus on implementation of the projects started to their logical conclusion, particularly in the social sectors like health, education and women’s welfare, infrastructure development in the villages and semi-urban areas. “Comprehensive packages are necessary to tap the huge potential in improving quality of life and integration of economy. I see a big thrust in education and health in the next five years.”

Remarkable growth

During the six years of Mr Modi at the helm, Gujarat registered a remarkable growth in GDP. Last fiscal, it crossed the target of 10.2 per cent to achieve 10.33 per cent. This year, it is expected to reach 11.26 per cent. Unlike growth rate of agriculture in other States at three to four per cent, Gujarat had a growth rate of more than 10 per cent in this sector. The Modi Government’s steps like annual summer campaigns to enrol girl children to school, and a drive against female foeticide, besides the budgetary provisions to open employment exchanges exclusively for women were received well. Mr Modi organised nearly 20 women’s conventions across the State and a series of “Krishi Mahotsavas” (Agro-Festivals). He also initiated special English coaching facilities to make the Gujarati educated youth employable. Although Gujarat has always been business-friendly State, it was during the Modi regime that the fruits of the policies of economic liberalisation and globalisation became visible. A recent RBI report said Gujarat ranked first in India with the proposed investments of $17.8 billion in 86 projects, comprising 25.8 per cent of the total investments of $69 billion received during 2007. The State now boasts 51 SEZs, work on which is in various states of implementation. Thousands of workers from various States have been employed in these projects. So far, in the three biennial events of “Vibrant Gujarat” held in 2003, 2005 and 2007, the State attracted investment proposals to the tune of Rs 8 lakh crore. A recent report of Teamlease ranked Gujarat next only to Delhi on the parameters of industrial peace.

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