Modeled on Gujarat

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  Tuesday, 29 April 2014 11:32
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Be it an effect, wave or tsunami that brings Narendra Modi to power at the centre this year…one thing is clear, he will have to deliver on all that he has promised during his high octane very vocal campaign. More than anything India and especially its youth will watch and want him to deliver in bringing about an economic revolution more jobs and prosperity. Question is how will Modi do that?  As he has said time and again he will stretch the Gujarat Model to fit India …is that a possibility?

NO RED TAPE

Going by the Gujarat model if Modi has his way India will become a very business friendly nation.  Modi, has a personal interest in reducing red tape and administrative lethargy, has been able to take Gujarat one notch higher in terms of investor-friendliness generating more jobs and thereby better standards of living.

AGRI FIRST

On the agricultural front the Gujarat model under Modi has struck a fine balance between being business-friendly and agriculture-friendly. Modi has laid special emphasis on the growing of agriculture in the state. The state’s agricultural growth is 9.8 percent per anum. This is the critical differentiator between the state and say a Maharashtra or Tamil Nadu. While these states did better than Gujarat in terms of overall growth, the state has excelled in agriculture. This also meant a higher level of rural income than in other states.

NO DOLE

The Gujarat model does not believe in doles and direct subsidies. This is much in evidence in its power sector. In Gujarat the state runs some of the most efficient power companies in India. On the other hand the rural sector, does get a power sop rates are lower than in other states..

STAYING PUBLIC

Also Modi does not believe in selling off public sector companies instead he is a firm believer in turning them around. Thus the return on investment in public sector enterprises has gone from just above 3% before he took over to around 7 % now. While Modi did hive off the state’s electricity utilities he has not privatised them for fear they will not care for the less affluent.

And so when the waves and tsunami’s have dies down Mr Modi and company will have to get down to work to prove that he is indeed as good as he promises because that is the ultimate test of governance as we know it today

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