Gujarat is top State in economic freedom

Published By : Admin | January 9, 2013 | 09:50 IST
"Gujarat is Top State in Economic Freedom! "
"Economic Freedom of the State of India 2012 reports lauds development in Gujarat"

Gujarat is the top state in economic freedom! This what the Economic Freedom of the States of India 2012 report says. The report has been released by the Center for Global Liberty and Prosperity, Cato Institute in collaboration with Friedrich-Naumann Stiftung.

The report has been prepared by known policy expert Mr. Bibek Debroy of the Centre for Policy Research, Mr. Laveesh Bhandari, Indicus Alaytics, Mr. Swaminathan S Anklesaria Aiyar, the Cato Institute and Mr. Ashok Gulati, Commission for Agricultural Costs and Prices, Government of India. It estimates the economic freedom in the 20 biggest Indian States based on the date for 2011, using a methodology adapted from the Fraser Institute’s Economic Freedom of the World Annual Reports.

The report has demonstrated significant differences in economic governance that exist in India and has focused on state level reforms to improve inclusive economic growth.

The Index is based on 3 parameters- Size of Government, Comparative Study of Legal Structures and Security of Property Rights and Regulation of Labour, Business.

Gujarat displaced Tamil Nadu as the top state with economic freedom and its freedom index score has been rising very fast.

On Size Of Government… 

Analyzing the size of Government, Mr. Bibek Debroy and Mr. Laveesh Bhandari write, “Gujarat’s is a well-known success story through much of the 2000s.  Moreover it has had major successes in agriculture, social welfare programmes, water resource management.  All of this is being achieved without an inordinate increase in the size of the government.”

It may be noted that Shri Narendra Modi has served as the state’s Chief Minister for the entire period that is being mentioned by the authors of the report.

Comparative Study of Legal Structures and Security:

A comparative study in under this head reveals, “as Gujarat leaves behind its sordid past of communal violence and destruction, other States are unable to improve security of life and property in the manner required.  This puts a serious question mark on the sustainability of high economic growth in such States.”

The atmosphere of peace, unity and brotherhood in the last decade has truly contributed to the development in the state. Shri Modi often recalls how the word ‘curfew’ used to be the norm of the day during preceding administrations in Gujarat. To enhance votebank politics, brother was pitted against brother, community against community. Under Shri Modi, this has long become history and the state is scaling new heights of progress as one united team!

On Regulation of Labour and Business:

Gujarat has witnessed significant improvement in its index values and retains its pre-eminent position in ‘Regulation of Labour and Business.’

Equal weighted average ratings based on these three parameters have been used for determining the overall rating of the States. Mr. Debroy and Mr. Bhandari conclude: The top three States are Gujarat, Tamil Nadu and Madhya Pradesh. They are followed by Haryana and Himachal Pradesh.

According to the report, “Gujarat has significantly improved in its rating from 0.47 in 2005 to 0.64 in 2011, mainly driven by better legal and regulatory performance.”

The report has noted that as many as 8 states have seen a fall in their economic freedom rankings since 2005.

Enhancing the Growth & Accolades: A Robust Vision, a determined mission 

From USA Congressional Think Tanks, Brookings Institutions, Financial Times, Wall Street Journal, policy organization Legatum Institute  to TIME Magazine and India’s ASSOCHAM, India Today among several other organizations and groups, Gujarat’s development has been hailed universally.

Giving a strong impetus to these dazzling heights of progress is a solid vision, a mission to ensure that each and every citizen of Gujarat is integrated in the develop journey of the state. It is the farsightedness of Chief Minister Shri Narendra Modi that has made the state a strong engine of growth over the last 11 years!

As far as economic freedom is concerned, Shri Narendra Modi has a very clear vision that has been appreciated far and wide. Speaking to the Economic Times earlier this year, Shri Modi had said that the government has no business to be in business. He envisions the role of the Government as that of a facilitator, helping stimulate growth in every way possible. Shri Modi went on to share how in Gujarat things such as greasing the palms of bureaucrats and politicians simply does not exist- there is coherence in polices which is more than enough.

He encapsulated his stand as- “No Red Tape, only Red Carpet is my policy towards investors.”

Writing in Firstpost, Venky Vembu noted that in the economic sphere while the PM offered “tired clichés”, Shri Modi offers a Big Idea that he has successfully implemented in Gujarat! Similarly, Shashi Shekhar argues that Shri Modi articulates a clear and coherent stand on economic issues.

Today, in a time when crony capitalism and policy paralysis is plaguing the nation, Gujarat comes across as a breath of fresh air. Shri Modi himself says on many occasions that he has no son or son in law so who will be accumulate money for? Under his watchful eyes, the money that was earlier used up in enriching the pockets of a handful of middlemen is being utilized for the development of the state. Thus, on one hand there is freedom to grow and innovate while on the other hand the fruits of development are reaching the common people of Gujarat!

The Force Behind Gujarat’s Development- 6 crore People of Gujarat! 

On many occasions Shri Modi has been asked to whom can the development in Gujarat be attributed? And everytime he is asked this question, quickly comes his reply- THE 6 CRORE PEOPLE OF GUJARAT! The development that the state has seen in the past 11 years has the scent of hardwork and sweat of 6 crore Gujaratis. The people of the state have shown amazing determination, zeal and commitment to take the state to newer heights of progress every single moment.

Recently, Asia’s leading brokerage house CLSA called Gujarat among the fastest growing states in India and called its development model most unique. It lauded Gujarat’s success in industry, agriculture and particularly praised the Government policies that have drawn investment in the state.

One of the key points CLSA noted is that Gujarat’s growth is characterized by low reliance on central funds. This yet again vindicated what Shri Modi says- that the growth of Gujarat is due to the people of Gujarat no Hand can take imaginary credit for the growth of the state!

It is great to see Gujarat’s growth receive such encouraging words very often. It surely will inspire the people to further work hard and touch heights of progress never seen before through the Mantra of ‘Sabka Saath, Sabka Vikas’ (Collective efforts, inclusive growth).

Economic Freedom of Indian States: Index scores & ranking, 2009 & 2011 

2011 rank

2009 rank

2011 score

2009 score

Gujarat

1

2

0.64

0.57


Tamil Nadu

2

1

0.57

0.59


Madhya Pradesh

3

6

00.56

0.42


Haryana

4

4

0.55

0.47


Himachal Pradesh

5

5

0.52

0.43


Andhra Pradesh

6

3

0.51

0.51


Jammu & Kashmir

7

8

0.46

0.38


Rajasthan

8

7

0.43

0.40


Karnataka

9

13

0.42

0.34


Kerala

10

10

0.42

0.36


Chhattisgarh

11

15

0.41

0.33


Punjab

12

12

0.39

0.36


Maharashtra

13

10

0.39

0.36


Uttarakhand

14

19

0.38

0.26


Assam

15

18

0.36

0.29


Uttar Pradesh

16

13

0.35

0.34


Orissa

17

17

0.34

0.31


West Bengal

18

15

0.32

0.33


Jharkhand

19

8

0.31

0.38


Bihar

20

20

0.29

0.23


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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.