Modi(fied) state

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Ila Patnaik Posted: Dec 17, 2007 at 2234 hrs IST

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: Drawing on a wide range of parameters from the CMIE databases, it is possible to evaluate the performance of Gujarat under Narendra Modi. In all cases, we focus on the change in the rank of the state when juxtaposed against other states of India.

There are five indicators where Modi has clearly had a positive impact. Gujarat’s per capita GDP has risen from rank 7 to 4. This has been based on an improvement in GDP, industry (from 3 to 2) and agriculture (from 12 to 8). The improvement in agriculture has gone along with a rise in fertiliser consumption from rank 10 to rank 6.

How was this done? A tell tale indicator lies in the expenditure of the state government. Modi’s tenure has been a time of sound fiscal policy — the rank of Gujarat ‘improved’ from 4th to 7th as there was less expenditure.

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IN comparison, the indicators showing a worsening situation in

Gujarat appear to be less important. The spread of Telecom has not been so strong: the rank by GSM subscribers dropped from 3rd to 5th. The infrastructure performance appears to be troubling — electricity generation capacity dropped from 2nd to 4th. Finally, the banking indicators are worrying: credit dropped from 7th to 8th and deposits dropped from 6th to 8th.

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