By P.S. Anatharaman, IANS
Ahmedabad : A day after he won a renewed mandate to develop a “Golden Gujarat”, the countdown has begun for Chief Minister Narendra Modi to transform India’s economically leading state into a global brand.
After leading his Bharatiya Janata Party (BJP) to another win in assembly elections, Modi declared that his chief task was to work towards development of a “Golden Gujarat” to mark the state’s golden jubilee on May 1, 2010.
Going by the BJP manifesto, his government has a heavy economic agenda of putting Gujarat in the league of upper middle-income countries with a per capita income of $3,596 to $11,115 and with low poverty rate, higher employment levels and better quality of life.
But the chief minister has to immediately plan out projects that will deliver the party’s poll promise of a house for the homeless over the next five years.
The chief minister also has the responsibility to implement the party’s promise of setting up one special economic zone (SEZ) in each of the 26 districts – to which a beginning has already been made.
Gujarat is already recognised as leading in the SEZ sector and it has a state policy for that in place.
No detailed goals for a “Golden Gujarat” have been formulated. Briefly what the chief minister means by the phrase is that by 2010, Gujarat’s physical infrastructure would be as good as that of Singapore and Japan, a social infrastructure akin to that in Europe and Australia, a manufacturing sector as robust as in China and a services sector as efficient the one in the US.
By 2010, the BJP’s goal is to achieve a growth rate of 12 percent, up from slightly above 10 percent now.
He has also drawn up a plan whose aims including achieving a state gross domestic product of Rs.7,632 billion — 5.5 times the current GSDP and a per capita income of Rs.1,169.03 — 4.4 times more than now by 2020, create 15.3 million new jobs, supply of drinking water to all and achieved a balanced inclusive growth.
On the agriculture front, the party has promised to provide 14 hours of uninterrupted power for small and marginal farmers.
The other major sector was power for which 11 MoUs have been inked for projects worth Rs.551 billion in the last edition of the Vibrant Gujarat series of global investors’ meet that Modi organised.
In the ports sector, 19 MoUs were signed for investments worth Rs.104.74 billion. The other leading sectors attracting investment proposals were oil and gas, rail transport and urban development. The total investments promised in the MoUs are expected to generate direct employment for 655,450 people.
But Modi’s thinking big does not involve a start from a scratch. He has already two platforms on hand to realise what he calls “golden dreams”.
Under the 2020 plan, the state is expected to achieve an industrial output of Rs.3,680 billion, nearly seven times the existing level. The plan also seeks to transform Gujarat into a retailing hub with organised sector contributing 20 percent of the total retail sector creating quality jobs and changing the urban landscape.
The 2020 plan will require Rs.1,700 billion of investment in a shelf of projects between the government and the private sector in the first five years. The miniscule annual plan allocations will be woefully inadequate to meet the resource needed.
The state could also not borrow to finance its development projects because the state was already highly indebted. The bulk of resources therefore inevitably have to come from the domestic private sector and foreign investment.
On the flip side, the chief minister will have to be careful in delays in bringing projects to fruition – a criticism that has dogged him so far. However, he has asserted that the quantum of MoU realization in Gujarat is 84 percent compared to 10 to 12 percent at the national level.
With the Reliance, Tata, Birla, Essar groups figuring in the list of prominent investors in the state, Gujarat should be well on its way to achieve the “golden” dreams and aims of the 2020 plan.
The industry has welcomed his re-election, arguably on the development plank.
“Modi’s victory is a vote for development by Gujaratis who are satisfied with his concept of development,” said Paru Jayakrishna, president of the Gujarat Chamber of Commerce and Industry.
“It is also a vote for ‘Vibrant Gujarat’ (a series of investor meets organized by Modi) and sets the pace for moving forward towards a Golden Gujarat,” she said.
“We hope that all his plans for industrial growth will be on the fast track and result in inclusive development,” Jayakrishna told IANS.
Industry sources add that Modi’s has the capacity to deliver what he means but much will depend on political future.