Gujarat among fastest developing states, its growth model most unique!

Published By : Admin | October 17, 2012 | 19:07 IST

Asia’s leading brokerage firm CLSA praises Gujarat’s development yet again! 

In a report ‘Gujarat: Growth to Sustain’, the authors note that Gujarat is not only among the fastest growing states in India but also has its unique model of development 

Industrial growth thanks to industry friendly policies, present Government’s initiatives that have attracted industry and industrialists: CLSA 

CLSA report notes Gujarat’s agriculture is shining including yield on food grains, wheat and cotton production as well as contribution to national agriculture GDP 

Gujarat’s growth characterized by low reliance on Central Funds: CLSA

Gujarat’s development journey has drawn the attention of various reputed international think tanks and policy institutions. The most recent words of admiration for Gujarat’s growth come from CLSA Asia-Pacific Markets, which is Asia’s leading independent brokerage and investment group.

In a report titled ‘Gujarat: Growth to Sustain’ by Anirudha Dutta and Bhavesh Pravin Shah, it has been argued that apart from being one od the fastest growing most developed states in India, Gujarat also presents one of the most unique growth models. The report notes Gujarat’s success on agriculture and states that the growth model is more resilient due to its limited reliance on Central funds.

A Growth Model That is Sustainable: 

It is essential for growth to be sustainable in order to benefit as many people as possible. The CLSA report has noted this sustainability in Gujarat’s growth story under the visionary leadership of Shri Narendra Modi, putting it in perspective with the rest of India. 

Writing about India’s economic trajectory, the report notes that India grew differently and made the transition from being, “an agrarian economy to a services powerhouse without going through a phase where manufacturing dominates” and this has led to dependence on agriculture along with no large scale creation on employment. 

However, in case of Gujarat the report makes the following observations:

  • Gujarat has bucked this overall trend. Industry accounts for 40% of GSDP vis-à-vis 27% for the rest of India.
  • The state scores well when compared to other industrialized states such as Maharashtra and Tamil Nadu, where share of industry in overall GSDP has been falling.
  • Gujarat industry’s GDP contribution towards national industry GDP has risen from 8-8.5% in FY01 to 11-11.5% in FY11.
 

On the role of the state Government, the report notes:

  • Among other things, industrial growth possible thanks to industry friendly polices.
  • Present Government’s initiatives have attracted many an industries and industrialists.
 

JAI KISAN- CLSA Report Notes Gujarat’s Success in Agriculture 

Agriculture is the life force of our nation. Even today, most number of people earn their livelihood from the primary sector. No growth can be considered complete till our agrarian economy receives an impetus.

When Shri Narendra Modi assumed office in 2001, Gujarat was never known for its agriculture growth. With perpetual drought, lack of perennial rivers among other things, no one thought agriculture could thrive in Gujarat. This was when Shri Modi ushered in a paradigm shift in the approach to governance and gave an immense boost to agriculture. Initiatives such as Krishi Mahotsav brought about revolutionary change in the lives of the farmers and today the results are for al to see- while the rest of India’s agriculture has failed to grow beyond 3%, Gujarat has maintained consistent agrarian growth of 11%!

CLSA notes these changes in its report and states:

  • Gujarat’s GSDP from agriculture is 13%, which is considerably higher than industrialized states like Maharashtra and Tamil Nadu.
  • In the last decade, Gujarat has doubled agriculture GDP contribution to national agriculture GDOP.
  • Gujarat’s contribution to wheat and cotton production has improved over past few years.
  • Marked increase its yield in food grains.

Low Reliance on Central Funds! 

Shri Narendra Modi has repeatedly stated that the development in Gujarat is due to the efforts of 6 crore people of Gujarat. It is collective efforts and teamwork that is driving the growth engine of the state. In its report, CLSA notes that Gujarat’s reliance on central funds is low. The state’s tax revenue as percentage of total tax revenue stands at the highest in the country with 84%,

Furthermore, it states that Gujarat’s share in central devolution has remained unchanged at 3.4%, lower than states such as Maharashtra, Tamil Nadu, and Andhra Pradesh etc.

This report can be one of the many fitting answers to those anti-Gujarat elements who have been shouting from the roof top claiming their so called hand in the state’s development in the last decade when the numbers suggest a very different story!

Other Salient Points:

The CLSA report on Gujarat makes several other points on the vibrant atmosphere of development in the state. Some of the points they note are:
  • Gujarat is one of the best states in terms of improved governance in the past decade within the developed states.
  • Results visible in various sectors from literacy, PCI, drinking water facilities.
  • Improved Governance will help Gujarat enhance the social sector.
 

This is not the first time CLSA has praised the development in Gujarat. Its May 31st 2012 issue of ‘GREED & fear’ authored by renowned strategist Mr. Christopher Wood lauded Gujarat’s growth story and contrasted it with the pessimism that set in due to policy paralysis from New Delhi.

Other leading international bodies that have praised the development in Gujarat under the inspiring leadership of Shri Narendra Modi include world’s oldest and leading think tank Brookings Institution, leading business daily the Financial Times and the independent USA Congressional Think Thank, which called Shri Modi the ‘King of Governance.’ In March this year he appeared on the cover of TIME Magazine in a story titled, ‘Modi Means Business.

Shri Modi has said many times that the only thing he thinks of is the development of Gujarat and it is his dreams and inspiring leadership that has put Gujarat on the world map of development. Today, when we read reports such as these, we get an indication of how his dreams have translated into a reality, giving the people of Gujarat a golden decade of development.

 

References Cited:

https://www.business-standard.com/india/news/five-reasonsgujarat-is-differentother-states-clsa/191500/on 

https://blog.offstumped.in/2012/10/11/gujarat-polls-2012-clsas-state-of-states-report-on-gujarat/ 

https://www.narendramodi.in/leading-international-brokerage-house-clsa-applauds-development-in-gujarat/

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Joint Statement: Official visit of Shri Narendra Modi, Prime Minister of India to Kuwait (December 21-22, 2024)
December 22, 2024

At the invitation of His Highness the Amir of the State of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, Prime Minister of India His Excellency Shri Narendra Modi paid an official visit to Kuwait on 21-22 December 2024. This was his first visit to Kuwait. Prime Minister Shri Narendra Modi attended the opening ceremony of the 26th Arabian Gulf Cup in Kuwait on 21 December 2024 as the ‘Guest of Honour’ of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah.

His Highness the Amir of the State of Kuwait Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah and His Highness Sheikh Sabah Al-Khaled Al-Sabah Al-Hamad Al-Mubarak Al-Sabah, Crown Prince of the State of Kuwait received Prime Minister Shri Narendra Modi at Bayan Palace on 22 December 2024 and was accorded a ceremonial welcome. Prime Minister Shri Narendra Modi expressed his deep appreciation to His Highness the Amir of the State of Kuwait Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah for conferring on him the highest award of the State of Kuwait ‘The Order of Mubarak Al Kabeer’. The leaders exchanged views on bilateral, global, regional and multilateral issues of mutual interest.

Given the traditional, close and friendly bilateral relations and desire to deepen cooperation in all fields, the two leaders agreed to elevate the relations between India and Kuwait to a ‘Strategic Partnership’. The leaders stressed that it is in line with the common interests of the two countries and for the mutual benefit of the two peoples. Establishment of a strategic partnership between both countries will further broad-base and deepen our long-standing historical ties.

Prime Minister Shri Narendra Modi held bilateral talks with His Highness Sheikh Ahmad Abdullah Al-Ahmad Al-Jaber Al-Mubarak Al-Sabah, Prime Minister of the State of Kuwait. In light of the newly established strategic partnership, the two sides reaffirmed their commitment to further strengthen bilateral relations through comprehensive and structured cooperation in key areas, including political, trade, investment, defence, security, energy, culture, education, technology and people-to-people ties.

The two sides recalled the centuries-old historical ties rooted in shared history and cultural affinities. They noted with satisfaction the regular interactions at various levels which have helped in generating and sustaining the momentum in the multifaceted bilateral cooperation. Both sides emphasized on sustaining the recent momentum in high-level exchanges through regular bilateral exchanges at Ministerial and senior-official levels.

The two sides welcomed the recent establishment of a Joint Commission on Cooperation (JCC) between India and Kuwait. The JCC will be an institutional mechanism to review and monitor the entire spectrum of the bilateral relations between the two countries and will be headed by the Foreign Ministers of both countries. To further expand our bilateral cooperation across various fields, new Joint Working Groups (JWGs) have been set up in areas of trade, investments, education and skill development, science and technology, security and counter-terrorism, agriculture, and culture, in addition to the existing JWGs on Health, Manpower and Hydrocarbons. Both sides emphasized on convening the meetings of the JCC and the JWGs under it at an early date.

Both sides noted that trade has been an enduring link between the two countries and emphasized on the potential for further growth and diversification in bilateral trade. They also emphasized on the need for promoting exchange of business delegations and strengthening institutional linkages.

Recognizing that the Indian economy is one of the fastest growing emerging major economies and acknowledging Kuwait’s significant investment capacity, both sides discussed various avenues for investments in India. The Kuwaiti side welcomed steps taken by India in making a conducive environment for foreign direct investments and foreign institutional investments, and expressed interest to explore investment opportunities in different sectors, including technology, tourism, healthcare, food-security, logistics and others. They recognized the need for closer and greater engagement between investment authorities in Kuwait with Indian institutions, companies and funds. They encouraged companies of both countries to invest and participate in infrastructure projects. They also directed the concerned authorities of both countries to fast-track and complete the ongoing negotiations on the Bilateral Investment Treaty.

Both sides discussed ways to enhance their bilateral partnership in the energy sector. While expressing satisfaction at the bilateral energy trade, they agreed that potential exists to further enhance it. They discussed avenues to transform the cooperation from a buyer-seller relationship to a comprehensive partnership with greater collaboration in upstream and downstream sectors. Both sides expressed keenness to support companies of the two countries to increase cooperation in the fields of exploration and production of oil and gas, refining, engineering services, petrochemical industries, new and renewable energy. Both sides also agreed to discuss participation by Kuwait in India's Strategic Petroleum Reserve Programme.

Both sides agreed that defence is an important component of the strategic partnership between India and Kuwait. The two sides welcomed the signing of the MoU in the field of Defence that will provide the required framework to further strengthen bilateral defence ties, including through joint military exercises, training of defence personnel, coastal defence, maritime safety, joint development and production of defence equipment.

The two sides unequivocally condemned terrorism in all its forms and manifestations, including cross-border terrorism and called for disrupting of terrorism financing networks and safe havens, and dismantling of terror infrastructure. Expressing appreciation of their ongoing bilateral cooperation in the area of security, both sides agreed to enhance cooperation in counter-terrorism operations, information and intelligence sharing, developing and exchanging experiences, best practices and technologies, capacity building and to strengthen cooperation in law enforcement, anti-money laundering, drug-trafficking and other transnational crimes. The two sides discussed ways and means to promote cooperation in cybersecurity, including prevention of use of cyberspace for terrorism, radicalisation and for disturbing social harmony. The Indian side praised the results of the fourth high-level conference on "Enhancing International Cooperation in Combating Terrorism and Building Resilient Mechanisms for Border Security - The Kuwait Phase of the Dushanbe Process," which was hosted by the State of Kuwait on November 4-5, 2024.

Both sides acknowledged health cooperation as one of the important pillars of bilateral ties and expressed their commitment to further strengthen collaboration in this important sector. Both sides appreciated the bilateral cooperation during the COVID- 19 pandemic. They discussed the possibility of setting up of Indian pharmaceutical manufacturing plants in Kuwait. They also expressed their intent to strengthen cooperation in the field of medical products regulation in the ongoing discussions on an MoU between the drug regulatory authorities.

The two sides expressed interest in pursuing deeper collaboration in the area of technology including emerging technologies, semiconductors and artificial intelligence. They discussed avenues to explore B2B cooperation, furthering e-Governance, and sharing best practices for facilitating industries/companies of both countries in the policies and regulation in the electronics and IT sector.

The Kuwaiti side also expressed interest in cooperation with India to ensure its food-security. Both sides discussed various avenues for collaboration including investments by Kuwaiti companies in food parks in India.

The Indian side welcomed Kuwait’s decision to become a member of the International Solar Alliance (ISA), marking a significant step towards collaboration in developing and deploying low-carbon growth trajectories and fostering sustainable energy solutions. Both sides agreed to work closely towards increasing the deployment of solar energy across the globe within ISA.

Both sides noted the recent meetings between the civil aviation authorities of both countries. The two sides discussed the increase of bilateral flight seat capacities and associated issues. They agreed to continue discussions in order to reach a mutually acceptable solution at an early date.

Appreciating the renewal of the Cultural Exchange Programme (CEP) for 2025-2029, which will facilitate greater cultural exchanges in arts, music, and literature festivals, the two sides reaffirmed their commitment on further enhancing people to people contacts and strengthening the cultural cooperation.

Both sides expressed satisfaction at the signing of the Executive Program on Cooperation in the Field of Sports for 2025-2028. which will strengthen cooperation in the area of sports including mutual exchange and visits of sportsmen, organising workshops, seminars and conferences, exchange of sports publications between both nations.

Both sides highlighted that education is an important area of cooperation including strengthening institutional linkages and exchanges between higher educational institutions of both countries. Both sides also expressed interest in collaborating on Educational Technology, exploring opportunities for online learning platforms and digital libraries to modernize educational infrastructure.

As part of the activities under the MoU between Sheikh Saud Al Nasser Al Sabah Kuwaiti Diplomatic Institute and the Sushma Swaraj Institute of Foreign Service (SSIFS), both sides welcomed the proposal to organize the Special Course for diplomats and Officers from Kuwait at SSIFS in New Delhi.

Both sides acknowledged that centuries old people-to-people ties represent a fundamental pillar of the historic India-Kuwait relationship. The Kuwaiti leadership expressed deep appreciation for the role and contribution made by the Indian community in Kuwait for the progress and development of their host country, noting that Indian citizens in Kuwait are highly respected for their peaceful and hard-working nature. Prime Minister Shri Narendra Modi conveyed his appreciation to the leadership of Kuwait for ensuring the welfare and well-being of this large and vibrant Indian community in Kuwait.

The two sides stressed upon the depth and importance of long standing and historical cooperation in the field of manpower mobility and human resources. Both sides agreed to hold regular meetings of Consular Dialogue as well as Labour and Manpower Dialogue to address issues related to expatriates, labour mobility and matters of mutual interest.

The two sides appreciated the excellent coordination between both sides in the UN and other multilateral fora. The Indian side welcomed Kuwait’s entry as ‘dialogue partner’ in SCO during India’s Presidency of Shanghai Cooperation Organisation (SCO) in 2023. The Indian side also appreciated Kuwait’s active role in the Asian Cooperation Dialogue (ACD). The Kuwaiti side highlighted the importance of making the necessary efforts to explore the possibility of transforming the ACD into a regional organisation.

Prime Minister Shri Narendra Modi congratulated His Highness the Amir on Kuwait’s assumption of the Presidency of GCC this year and expressed confidence that the growing India-GCC cooperation will be further strengthened under his visionary leadership. Both sides welcomed the outcomes of the inaugural India-GCC Joint Ministerial Meeting for Strategic Dialogue at the level of Foreign Ministers held in Riyadh on 9 September 2024. The Kuwaiti side as the current Chair of GCC assured full support for deepening of the India-GCC cooperation under the recently adopted Joint Action Plan in areas including health, trade, security, agriculture and food security, transportation, energy, culture, amongst others. Both sides also stressed the importance of early conclusion of the India-GCC Free Trade Agreement.

In the context of the UN reforms, both leaders emphasized the importance of an effective multilateral system, centered on a UN reflective of contemporary realities, as a key factor in tackling global challenges. The two sides stressed the need for the UN reforms, including of the Security Council through expansion in both categories of membership, to make it more representative, credible and effective.

The following documents were signed/exchanged during the visit, which will further deepen the multifaceted bilateral relationship as well as open avenues for newer areas of cooperation:● MoU between India and Kuwait on Cooperation in the field of Defence.

● Cultural Exchange Programme between India and Kuwait for the years 2025-2029.

● Executive Programme between India and Kuwait on Cooperation in the field of Sports for 2025-2028 between the Ministry of Youth Affairs and Sports, Government of India and Public Authority for Youth and Sports, Government of the State of Kuwait.

● Kuwait’s membership of International Solar Alliance (ISA).

Prime Minister Shri Narendra Modi thanked His Highness the Amir of the State of Kuwait for the warm hospitality accorded to him and his delegation. The visit reaffirmed the strong bonds of friendship and cooperation between India and Kuwait. The leaders expressed optimism that this renewed partnership would continue to grow, benefiting the people of both countries and contributing to regional and global stability. Prime Minister Shri Narendra Modi also invited His Highness the Amir of the State of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, Crown Prince His Highness Sheikh Sabah Al-Khaled Al-Sabah Al-Hamad Al-Mubarak Al-Sabah, and His Highness Sheikh Ahmad Abdullah Al-Ahmad Al-Jaber Al-Mubarak Al-Sabah, Prime Minister of the State of Kuwait to visit India.