Gujarat – The Growth Machine

Oct 26, 2013 No Comments by

What a leader has done in a state very accurately tells us what he can do if he runs the nation. Let’s examine the facts about Gujarat and then you can make your own conclusion.

  • The state now contributes more than 7% to India’s GDP; in particular, it accounted for 13% of manufactured and 11% of primary sector output of the country.
  • The state records a per capita income of Rs.89,668 (as of 2011-12), well above the national average level of Rs 61,564 for the same year, indicative that benefits of growth are reaching at the individual level.
  • Gujarat achieved decadal growth of 19.2% (2001-2011), higher than national level decadal growth rate of 17.6%.  And accounts for about 17 percent of the country’s industrial output.
  • Literacy – 79.3% (as per Census 2011); with urban literacy at 73.0% and rural literacy at 87.8%, Gender ratio – 918 females per thousand males (Census 2011) Life expectancy – for males recorded at 64.9 years and for females at 69.0 years Gujarat’s Economy Registering an annualised growth rate of 9.1%
  • Gujarat has achieved a growth rate well above the national level growth rate of 8.2% for the same period. In terms of current prices, GDP growth in the state has been touching nearly 23.0% in FY11 and 15.3% in FY12.
  • Budget estimates for 2013-14 suggest lower growth rates of 14.0% in FY13 and 14.5% in FY14, it reflects the impact of slowdown in overall economic activity in India rather than a weakening of fundamentals of the Gujarat economy.
  • It is no surprise that 26 per cent of investments in terms of implemented projects in India (till 2011) have been made in Gujarat. It appears that industrial and infrastructure development in Gujarat has not left the agricultural sector behind, and that growth over the last two decades has indeed been inclusive.
  • Gujarat’s infrastructure speaks itself about economic development:

-> Home to the highest number of ports (42) and airports in India

->  The only Indian state to have a state-wide integrated gas network

->  Power-surplus state with uninterrupted power supply

  • Gujarat has excellent transportation infrastructure. Public transport is provided by both government and private operators.
  • Gujarat contributes nearly 24% of the total exports (75 billion dollars) made by India (2012)


Growth of the gross domestic product (GDP) of the State has been significant over the past 15 years and Gujarat is the rank second in most industrialised state in India. Its growth in Education, Employment and Environment Protection is very consistent and in a good rate. By analysing the recent status of the economy and its growth Gujarat’s future looks very consistent and healthy. The average per capita income is way above that of India. Now all this can not be nullified by one Godhra incident. Let’s put aside that for a moment. In terms of growth, Narendra Modi has proved himself in Gujarat.  Now the question is can he do the same on the national front? Only time will tell.


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