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A VIBRANT GUJARAT?

Mb: 9971174180, 8287581824; Bhaibhor@gmail.com (A Forum Against Political Lies, Consist of Students From University of Delhi, Jawaharlal Nehru University, Jamia Millia Islamia, and Indian Institute of Mass Communication)

Sanjeev Kumar (Antim)

(Subaltern1987@gmail.com Mb: 8802994548)

Delhi 2014

ABSTRACT In contemporary world there has been broadly two model of development. One is of Bhagwati Model which suggests unconditional encouragement to new investment in the economy. According to this model, the revenue generated from these new investments for states could be used for the improvement of living standard of the downtrodden section of the society. These new generated revenue can rapidly increase states expenditure on people welfare programs. This model refuse to encourage enough states expenditure on public welfare programs because according to them if the s tate give more importance to expenditure which would encourage new investment i.e. expenditure on infrastructure development, incentives for new investment etc. It is this model which the Gujarat Government is following since last decade. In contrast to this model, there is another model, suggested by economist like Amartya Sen, which give more importance to states investment on public welfare programs such as education, health etc. The Sens model thinks that human capital is most precious things for any economy. This model has been claimed to be followed partly by states like MP and Bihar. It is with this backdrop that i would like to suggest our reader to read this report. If i have to summarise the entire report into one sentence, i would say that Gujarats model of development is pornification of the neo-liberal model of development. Gujarats model is nothing but pornified form of Indian model of development.

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Acknowledgment Every project big or small is successful largely due to the effort of a number of wonderful people who have always given their valuable advice or lent a helping hand. I sincerely appreciate the inspiration; support and guidance of all those people who have been instrumental in making this project a success. Since this report is prepared as a part of a project that bunch of students and teachers from different universities resided in Delhi including JNU, Jamia, DU, IIT and IIMC, started under the forum named Bhai Bhor, against political lies, i need not to acknowledge all by their names. But few names that i should specially mention include Gaurav Dixit. Even though he deserted us before the project started, but without him this project could not have been started. He was the first person who appreciated my idea and involved himself into it. Dr. Atul Sood also needs special mention who gifted us his book and suggested us to use his book in our report. He also read our report and gave his comments and suggestions. Dr. P K Basant, Dr. R P Bahuguna, Dr. Manisha Setthi, Ahmad Sohaib, Prof. Nishat Quasar, from Jamia Millia Islamia, Prof. V K Tripathi from IIT Delhi, Prof. Manoj Jha, Prof. Subindo Ghosh from DU etc always appreciated our work and thus they needs special mention. Special thank should be given to Aatif, who is the only student who remain in this project right from beginning to the end. Zeyaul Haque also needs a vote of thank because he helped us regularly in monitoring our facebook page. I would also take this opportunity to thank all the people whom i met throughout my journey to Patna and other parts of Bihar. Without their encouragement, this project could not have been even initiated. Last but not least, but all member of Jaagriti Natya Manch needs special mention. They are performing their first play (Jute Ki Chadar) in different parts of north India, which is based on the finding of our report. Aatif, Inaam, Hamid Bihari, Haaris, Poonam, Gaytri, Samsad, Asim etc all should be appreciated for their dedication.

Date: 17 January 2014 Place: New Delhi

Sanjeev Kumar (Antim)

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List of Symbols GSDP % TOI ET EPW NSSO PCI FDI HT ET NSDP ICI Kms PSGY DMIC CAG BJP GCMMF IRMA SEZs GWRDC VAT CNG EPW MoU MH TN UP WE JH OBCs SC ST IMR MPCE SIDBI SJSRY NSAP MGNREGA NFHS UNDP UNICEF IFPRI Gross States Domestic Product Percentage Times Of India Economic Times Economic & Political Weekly National Sample Survey Organisation Per Capita Income Foreign Direct Investment Hindustan Times Economic Times Net State Domestic Product Investment Climate Index kilometre Pradhanmantri Gramin Sadak Yojana Delhi - Mumbai Industrial Corridor Comptroller & Auditor General Bhartiye Janata Party Gujarat Cooperative of Milk Marketing Federation Institute of Rural Management Anand Special Economic Zone Gujarat Water Resources Development Corporation Value Added Tax Compressed Natural Gas Economic & Political Weekly Memorandum of Understanding Maharashtra Tamil Nadu Uttar Pradesh West Bengal Jharkhand Other Backward Classes Scheduled Caste Scheduled Tribe Infant Mortality Rate Monthly Per Capita Expenditure Small Industries Development Bank of India Swarna Jayanti Shahari Rozgar Yojana National Social Assistance Programme Mahatma Gandhi National Rural Employment Guarantee Act National Family Health Survey United Nations Development Program United Nations Children's Fund International Food Policy Research Institute

Webpage Links for References

Hindustan Times(HT):
13 April: http://www.hindustantimes.com/india-news/people-battling-odds-to-get-drinking-water-in-gujarat/article1-1044162.aspx

Business Standard:
20 February 2013 Gujarat presents surplus budget, but fiscal deficit widens http://www.businessstandard.com/article/budget/gujarat-presents-surplus-budget-but-fiscal-deficit-widens-113022000797_1.html

The Economic Times(ET):

8 holes CAG picked in Narendra Modis Gujarat development plan; http://economictimes.indiatimes.com/slideshows/economy/8-holescag-picked-in-narendra-modis-gujarat-development-plan/average-return-on-investments/slideshow/19119192.cms 10 November 2008: http://articles.economictimes.indiatimes.com/2008-11-11/news/28414038_1_tatas-nano-nano-plant-loanrepayment 8 Dec 2012: How an American lobbying company Apco Worldwide markets Narendra Modi to the world http://articles.economictimes.indiatimes.com/2012-12-09/news/35689601_1_apco-worldwide-vibrant-gujarat-niira-radia 27 july 2013 Amartya Sen vs Bhagwati: Who is right in the debate on Gujarat-Kerala growth models? http://articles.economictimes.indiatimes.com/2013-07-28/news/40833881_1_gujarat-model-jagdish-bhagwati-growth 26 September 2013 Odisha, Bihar least developed, Gujarat less developed: Raghuram Rajan panel http://articles.economictimes.indiatimes.com/2013-09-27/news/42427766_1_special-category-status-raghuram-rajan-backwardness

Times of India(TOI):
Sept 7, 2005. http://articles.timesofindia.indiatimes.com/2005-09-07/india/27835156_1_verghese-kurien-amrita-patel-national-dairydevelopment-board 24 March 2006; Kurien's ouster decided in his own backyard http://articles.timesofindia.indiatimes.com/2006-03-25/ahmedabad/27796546_1_verghese-kurien-milk-marketing-federation-dairychairman 17 Nov 2007: Modi's image builders have dictators on client list http://timesofindia.indiatimes.com/home/specials/Modis-imagebuilders-have-dictators-on-client-list/articleshow/2600140.cms 19 August 2011: Lokayukta cannot touch commission's cases http://articles.timesofindia.indiatimes.com/2011-08-20/ahmedabad/29909054_1_justice-inquiry-dilip-sanghani 5 Oct 2011; http://articles.timesofindia.indiatimes.com/2011-10-06/edit-page/30247288_1_narendra-modi-gujarat-s-industrialdevelopment-board-keshubhai-patel 11 January 2012 Total liquor ban not easy: CM; http://articles.timesofindia.indiatimes.com/2012-01-12/bangalore/30619196_1_arrack-ban-liquor-sale-of-illicit-liquor 05 March 2012; State charges 23% VAT on petrol, country's highest; http://articles.timesofindia.indiatimes.com/2012-0306/ahmedabad/31126889_1_petrol-and-diesel-vat-cess-collection 16 May 2012 Muslims poorer than most in Gujarat, says economist http://articles.timesofindia.indiatimes.com/2012-0517/rajkot/31748479_1_Muslims-sachar-committee-capita-income 11 June 2012: http://articles.timesofindia.indiatimes.com/2012-06-12/edit-page/32176123_1_gujarat-narendra-modi-industrial-growth or http://articles.timesofindia.indiatimes.com/2013-07-22/india/40726894_1_households-expenditure-gujarat 28 February 2013; Gujarat rakes in Rs 158 cr VAT from CNG http://articles.timesofindia.indiatimes.com/2013-0301/ahmedabad/37372098_1_petrol-and-diesel-finance-minister-income 15 April 2013 Why no RTI in 'progessive' Gujarat, Mr Modi? http://articles.timesofindia.indiatimes.com/2013-04-16/ahmedabad/38585071_1_gujarat-information-commission-gujarat-state-appeals 13 May 2013 Gujarat ranked 8th in agricultural growth: Centre http://articles.timesofindia.indiatimes.com/2013-0514/ahmedabad/39254766_1_gujarat-government-krishi-mahotsav-narendra-modi 21 July 2013 http://timesofindia.indiatimes.com/india/Gujarat-slides-in-both-rural-and-urban-spending-datareveals/articleshow/21229651.cms? 17 August 2013; Shifting lions from Gujarat: MP govt seeks Rs 7cr from Centre http://articles.timesofindia.indiatimes.com/201308-18/flora-fauna/41421923_1_palpur-kuno-sanctuary-asiatic-lions-madhya-pradesh

Asian Age:
20 July 2013: Vibrant Gujarat: More Myth than Fact http://archive.asianage.com/india/vibrant-gujarat-more-myth-fact-538 The Indian Express: 05 January 2009: Gujarat on a high with the sale of legal liquor: http://www.indianexpress.com/news/gujarat-on-a--high--with-the-saleof-legal-liquor/407197/).

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03 June 2009; Sujalam Sufalam Yojana rice scam: probe moves at snails pace : http://www.indianexpress.com/news/sujalam-sufalamyojana-rice-scam-probe-moves-at-snail-s-pace/470878/ 4 March 2011: http://www.indianexpress.com/news/modhwadia-blasts-modi-govt-over-nano-sops-to-tatas/758256/ 17 July 2013 A rural Gujarati spends Rs 14 on education per month: NSSO http://www.indianexpress.com/news/a-rural-gujaratispends-rs-14-on-education-per-month-nsso/1143412/ 5 Sept 2013 No model state http://www.indianexpress.com/news/no-model-state/1165249/) 6 Nov 2013 Silence speaks more: http://www.indianexpress.com/news/silence-speaks-more/1191680/ 07 November 2013: Threefold rise in power theft among farmers in 3 years http://www.indianexpress.com/news/threefold-rise-in-power-theft-among-farmers-in-3-years/1192349/

Daily Bhaskar:
08 October 2011: 10 years on, a dekko at Gujarat government's report card http://daily.bhaskar.com/article/GUJ-AHD-10-years-on-a-dekko-at-gujarat-governments-report-card-2488786.html

First Post:
15 April 2013: http://www.firstpost.com/politics/modi-hardsells-gujarat-as-engine-of-growth-but-who-is-buying-699302.html 22 July 2013; http://www.firstpost.com/economy/modis-gujarat-development-model-questioned-again-974707.html)

The Hindu:
26 September 2012; Not vegetarianism or dieting, Mr. Modi http://www.thehindu.com/opinion/op-ed/not-vegetarianism-ordieting-mr-modi/article3939379.ece 12 April 2013: http://www.thehindu.com/news/national/gujarat-the-gateway-to-india-fact-or-farce/article4611304.ece

Dnaindia:
12 April 2013: http://www.dnaindia.com/ahmedabad/1821712/report-gujarat-share-in-fdi-slips-to-2-38pct-6th-rank

The Telegraph:
5 January 2009: http://www.telegraphindia.com/1090106/jsp/nation/story_10349574.jsp

Frontline:
23 Feb to 08 March 2013 Volume 30 - Issue 04 Mirage of development; http://www.frontline.in/navigation/?type=static&page=flonnet&rdurl=fl3004/stories/20130308300404300.htm Himanshu article on CAG report: http://www.frontline.in/cover-story/building-euphoria/article4666708.ece

Tehelka
30 November 2012; Sweet Deals Are Made Of Gas http://www.tehelka.com/sweet-deals-are-made-of-gas/

IBN Live:
4 December 2012 Gujarat gas deal a bigger scam than 2G; both BJP, Congress involved: Kejriwal http://ibnlive.in.com/news/gujaratgas-deal-a-bigger-scam-than-2g-both-bjp-congress-involved-kejriwal/308802-3-238.html

India Today:
29th march 2012; CAG indicts Modi govt for favouring industrialists, causing loss of Rs . 5,000 crore http://indiatoday.intoday.in/story/cag-indicts-narendra-modi-for-favouring-industrialists/1/179953.html

Economic and Political Weekly (EPW):

September 28, 2013: http://www.epw.in/system/files/pdf/2013_48/39/Have_Gujarat_and_Bihar_Outperformed_the_Rest_of_India.pdf October 26, 2013: http://www.epw.in/system/files/pdf/2013_48/43/Partial_View_of_Outcome_of_Reforms_and_Gujarat_Model.pdf November 23, 2013: http://www.epw.in/system/files/pdf/2013_48/47/Why_Question_the_Pace_of_Growth_in_Gujarat.pdf February 16, 2008: http://www.epw.in/system/files/pdf/2008_43/07/CoManagement_of_Electricity_and_Groundwater_An_Assessment_of_Gujarats_Jyotirgra m_Scheme.pdf November 5, 2011 : http://www.epw.in/system/files/pdf/2011_46/44-45/Labour_and_Employment_in_Gujarat.pdf

The Socio-Economic Report; Gujarat Government:

http://financedepartment.gujarat.gov.in/budget12_13_pdf/34_Socio_Economic_Review_English.pdf) NSSO Reports: http://mospi.nic.in/Mospi_New/site/inner.aspx?status=3&menu_id=31

RBI Report
Atri Mukherjee, RBI Report, 2011: http://rbidocs.rbi.org.in/rdocs/Content/PDFs/OCRIF261012_SN1.pdf,

The World Bank Report:

Giuseppe Iarossi, The Investment Climate in 16 Indian States Policy Research Working Paper: 4817, African Region, January 2009 http://wwwwds.worldbank.org/servlet/WDSContentServer/IW3P/IB/2009/01/12/000158349_20090112151008/Rendered/PDF/WPS4817.pdf

Introduction There has been unconditional spurt in praise for governance and economic development model of Gujarat and more has been of the person who is claimed to be behind the self claimed extra-success of the model. The model of Gujarat has been projected as something which has all the remedies for all kind of problem that India is facing since its independence or even back to early Muslim rule in India. The discussion about the different aspects of chief ministership of Narendra Modi in Gujarat for more than 10 years came out from news room, universities, seminars and public meetings to the streets and corner of the north India at large. There has been couple of books that has been published in last two years on development model of Gujarat. The list include, Bibek Debroy, Atul Sood, While print media, specially English print media, specially off-stream media, did gave some space to the economic aspect of development in Gujarat during the rule of Narendara Modi but we hardly witnessed any prime time discussion on any news channel about the kind of economic development that the state of Gujarat followed for last 10 years. Even in English print media, there is hardly, if any, discussion about the ideology which is behind the Gujarat model of development and governance. It is this lack of media attention that prompted me to write this short report. The report starts with the comparative study of growth in the income, per capita income, investment etc in the State of Gujarat during the last decade and period proceeding the last decade. This was followed by a short section on industrial development in Gujarat. These sections are short because there is hardly anything with us to say on these issues, except our agreement with the high performing status of the Gujarat in these terms. Here we did a comparative study of Gujarat and other major state, and comparison with Gujarats own status in the past. The major portion of the report consist of loops in Gujarat Governments claim in sector of infrastructure including road, elect ricity etc, her performance in the social sector such as health, poverty, consumption level, education etc. The last section of the report discuss the different form of disparities in the status and development, including regional disparities, disparities based on caste, class, sect etc and rural and urban disparities. The hypothetical reasons for the loops in the Developmental Model of Gujarat has not been discussed separately, instead every section of the report followed the possible causes and reasons for these poor performance, disparities etc. The report end with a section on some aspects of Modis claim on the governance part of the Gujarats story which specifically discuss Gujarats performance in implementation of Right To Information Act, justice. This section also discuss some issues that Mr. Modi raised in the name of reform in governance, for example his decision to ban liquor in the state. The report concludes with larger question of why Mr. Modi has preferred this particular kind of model for the development and governance of the state. It is this section that the report moves into the political aspect of the Gujarat in particular and Indian in general. Since the environment of the public space in recent years has become so intense, suspicious, and ripe for any kind of physical clash that we intensely did not touched the issue of violence based on religion from either side including, minority, majority or state itself. The report did talk about the disparities based on religious sects but it never touches the religious life of the people or even the governance issue. It touches only the economic aspects of the disparities. The report has been kept as short as possible, so that it not require common people to spend more time to understand the report without having a rigorous and attentive study. The language of the report is in non-academic language without any table or pie-chart so that people from all streams of life can understand the report easily.

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Growth Story: in terms of growth rate in GSDP (Gross State Domestic Product), Gujarat did exceptionally well but not best. Some other states did better than Gujarat. Gujarats own Annual Socio-Economic Review stated that it is one of those States of India where economy has always performed better than the national average. 1 In terms of GSDP Gujarat was on second spots in 1995-96 but now its position during last decade (2000s) slipped to 3rd position.2 During 1995 to 2000 and 2001 to 2010, Gujarat increased its annual rate of growth merely from 8.01% to 8.68%. (11 June 2012, TOI) During the year 1992 to 97, the growth rate was 12.9% which came down to 2.8% during the period from 1997 to 2002 but again jumped to 10.09% during 2002-07 and 11.2% (expected) during 2007-12.3 Between 1994-2001, Gujarat's GSDP grew at 10%-13%, way higher than the all-India average. (TOI 5 Oct 2011) While GSDP growth under the chief ministership of Mr Narendra Modi has been around 9 per cent, but it was 16 per cent during the regime of Madhavsinh Solankis and Chimanbhai Patel. (20 July 2013 Asian Age) This indicates that the growth rate of Gujarat is not at its best during last decade. It also indicates that whatever increase that has been seen was due to the fact that rate of Gujarats GSDP growth came down drastically just before the beginning of the last decade. In terms of share of Gujarat in total GSDP from 1993-94 to 2011-12, Gujarats share has remained roughly stable between 7% and 8% for most years, though it slipped below 7% for four years during the rst half of the rst decade of the 21st century. 4 In terms of Per capita NSDP Gujarat stands at 8th position.5 According to Multi dimensional index of backwardness recently issued by RBI for Twelfth Five Year Plan, which is based on per capita consumption as measured by the NSSO, the poverty ratio, etc the rank of Gujarat is 12th. (26 September 2013 ET) (Live Mint 26 September 2013) In recent years Gujarat was ahead of National average (in terms of economic development) also because the percentage of population under the working age group in the state (60.20%) is higher than national average (56.9%). 6 In terms of Per capita income Gujarat was ranked seventh in 1995-96 but in latest data of 2011-12 she was ranked on 9th position.7 The per capita income (PCI), of Gujarat was Rs 63,996, while Haryana (Rs 92,327), MH, (Rs 83,471), Punjab (Rs 67,473), TN (Rs 72,993) and Uttarakhand ( Rs 68,292) are much ahead of her. (20 July 2013 Asian Age) The per capita income of Gujarati in 2011-12 was almost 50% higher than National average but when one look at the per capita expenditure, it is less than 10% higher of national average.8 The latest NSSO survey released in July 2013, has found that urban and rural spending in the state of Gujarat has been on a decline during the 1999-2012 period. The rank of Gujarat in terms rural spending slipped from fourth to eighth position during Modis regime. In urban spending, the state has fallen from seventh to ninth position. The top five states in rural spending are Kerala, Punjab, Haryana, TN and Andhra Pradesh. While in urban spending, Haryana, Kerala, MH, Karnataka and Punjab topped the list. The trend is evident even in household expenditure growth. (TOI; 21 july 2013) (First Post; 22 July 2013) Investment: There is saying that the mounting difference between per capita income and expenditure is due to the fact that their new investment is also increasing rapidly. But when we look at the figures from Gujarat, it shows a different picture. In neo-liberal world, investment is considered as equal to development. In 2011-12 Gujarat ranks 5th in foreign direct investment (FDI) 9 but in 2012-13 it slips to 6th position. (dnaindia 12 April 2013) (The Hindu 12 April 2013) (The First Post 15 April 2013) According to latest report of Reserve Bank of India, the position of Gujarat in per capita FDI. is eighth in India. Out of the total Foreign Direct Investment in India, the share of Gujarat is only 3.1%. FDI in Gujarat was 28000 crore during 2000 to 2010 while MH topped the list with 1.75 lakh crore, followed by Delhi at 1.02 lakh crore, and Karnataka crore.10A report of World Bank on The Investment Climate in 16 Indian State revel that in terms of Investment Climate Index (ICI) the position of Gujarat among 16 major Indian states is third.11 Investment through a state led project called Vibrant Gujarat about which there was huge hype has also been proved a complete failure. Following are the promised and actual investment done under Vibrant Gujarat project in different years: (Frontline 8 march 2013Mirage of development)

Socio-Economic Review, Gujarat State: 2012-13, Budget Publication No. 34, Directorate of Economics and Statistics, Govt. Of Gujarat,Gandhinagar, February 2013, p N VII 2 R Nagaraj, Shruti Pandey, Have Gujarat and Bihar Outperformed the Rest of India? A Statistical Note, Economic and Political Weekly, vol XLVIII no 39, September 28, 2013 & times of india 11 june 2012 3 Bibek Debroy, Gujarat: Governance for Growth and Development Academic Foundation, 2013, Table 2.2. & Sukumar Mukhopadhyay, Why Question the Pace of Growth in Gujarat?, Economic & Political Weekly, November 23, 2013 vol xlviii no 47, p 75 4 R Nagaraj, Shruti Pandey, Economic and Political Weekly, vol XLVIII no 39, September 28, 2013 5 Atri Mukherjee, Monsoon 2011, p 118, table 5 6 Socio-Economic Review, Gujarat State 2012-13, p 88 7 R Nagaraj, Shruti Pandey, Economic and Political Weekly, vol XLVIII no 39, September 28, 2013 8 Socio-Economic Review, Gujarat State 2012-13, p 90 9 Santosh Kumar Das, Sources and Patterns of Private Investment in Gujarat, edt. by Atul Sood, Delhi, 2012, p 52; & Director, Department of Economics and Statistics, Government of Gujarat. & Report by reserve bank of India.2011-12 10 Atri Mukherjee, p 108, table 2 11 Giuseppe Iarossi, The Investment Climate in 16 Indian States Policy Research Working Paper: 4817, The World Bank, African Region, Finance and Private Sector Development Group, January 2009, p 8., Report of World Bank, p 8

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Sr. No. 1 2 3 4 5 Year 2003 2005 2007 2009 2011 Promised 66,068 1,06,160 4,65,309 12,39,562 20,83,047 Actual 37,746 37,939 107,897 104,590 29,813.312

This movement of Gujarat government to attract as much as possible investment in the state has been given unconditional hype by all kind of media, advertising agency (APCO worldwide which is the same agency who is managing election campaign of BJP for next Lok Sabha election 2014) and officials of Gujarat government and member of BJP across the India. But till now the total actual investment under this program in Gujarat was not more than 10 per cent of what has been promised. Industry: In terms of Industrial Investment Proposals Gujarat stands on third position.13 Whatever investment that has been done in Gujarat was primarily in industrial and manufacturing sector while sector such as agriculture, service etc were being relatively ignored. Gujarat has been always a known center of Industrial development. In 1980-81, Gujarat's share in manufacturing at the national level was only 16.29%, but by 2000-01 it rose to an impressive 28.71%. Well before Modi, Gujarat accounted for 45% of India's petroleum products, roughly 18% of the country's cargo handling, 23% of our total requirement for crude oil and 30% of our natural gas needs from offshore basins. (TOI 5 Oct 2011) Indian Oil Corporations Gujarat Refinery at Vadodara, Gujarat State Fertiliser Company, Gujarat Narmada Valley Fertilizer Company, and Indian Petro-chemical Corporation Limited that worked as foundation for industrial revolution in the state were initiated long before Narendra Modi could come in power. (TwoCircles.net 21 January 2009) Gujarat got the title of Manchester of the East long before the Modi. During 2001-04, the rate of industrial growth for Gujarat was 3.95%, and during 2005-09, it was 12.65%. But during these same sub-periods, industrial growth for Orissa was 6.4% and 17.53%; and for Chhattisgarh it was 8.10% and 13.3%; and for Uttarakhand 18.84% and 11.63%. (TOI 11 June 2012) The incremental manufacturing output is mostly coming from a single industry petroleum rening whose share in gross value added in the states registered manufacturing has risen from 4% in 2000 -01 to nearly 25.3% in 2008-09. In other words, excluding petroleum rening, the contribution of the rest of manufacturing industries in the state has actually declined.14 Infrastructure: Gujarat claims exceptional improvement in infrastructure development which included electricity, road etc. There is no doubt that Gujarat did great job in these field in comparison to some other states but there are number of states which are well ahead of Gujarat in this field. When we look at the comparative study of improvement in these sectors during pre-Modi rule and Modis rule, we find a different narrative to be told.

12 13

Socio-Economic Review, Gujarat State: 2011-12, p 24 Atul Sood, Delhi, 2012, p 219, 14 R Nagaraj, Shruti Pandey, EPW, table 3, p 40

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Road: In recent months, there has been hype created about the incomputable job done by the Chief Minister of Gujarat in road transport. Lets look at the some aspect s of road transport in Gujarat. In Gujarat during 1990-91 to 2000-01 the total Road increased by 9.77% (6554kms) in which National Highway increased by 51%. During 2000-01 to 2009-10 the increase in total Road was 4.95% (3646 kms).15 In 1991, 87.5% of Gujarat roads were already asphaltized. (TOI 5 Oct 2011) The total length of Road in Gujarat increased from 137617 kms in March 2002 (which constitutes 5.60% of total roads in India) to 156188 kms in 2011-12 (which constitute only 4.12% of total roads in India). In March 2002 Gujarat had 8.75% of Indias total surfaced road length while in 2011 the proportion came down to 6.05%. In 2011 the road length per 100 sq.km of area in Gujarat is 79.7 while national average is 115.3 kms while the road length per lakh of population in Gujarat is 258.7 kms while national average is 313.2 kms. The share of Gujarats State highway in total state highways in India was 13.92% in March 2002 which came down to 11.24% in 2011.16 The working of the Gujarat State Road Transport Corporation was on 858000 kms in 1990-91 which increased to 1205000 kms in 2000-01 but in 2010-11 in reduced to 112100 kms. Average number of governments vehicles on the road of Gujarat increased from 6733 in 1990 -91 to 8573 in 2000-01 but in 2010-11 it reduced to 6327.17 In 1996 out of 18028, 16932 revenue villages in Gujarat were connected with pucca road. This increased to 17822 in 2006. This was an increase from 94% to 98.86%. But if we take total human habitations of 34187 human habitations, only 26767 human habitations were connected with road till the end of year 2000. In the last decade 4040 habitations have been connected under the central government flagship program of PGSY. Gujarat Government ignored road connectivity to the smaller habitations. More than 22% of smaller habitations (population less than 500) are still not connected with roads.18 The above mentioned facts and figures proves that at least in field of improving transport facilities, Gujarat of 1990s was better than Gujarat of 2000s and especially if the talk is of connecting the marginalised locality of state, society and sector of economy. This does not mean nothing have been done during the last ten years in field of transport. The recent government of Gujarat has given primary importance to improving the quality of existing roads and especially of those roads which has more immediate commercial and industrial importance while ignoring the improvement in transportation facilities for those regions of state which has poor or no transportation facilities. Port traffic in Gujarat jumped from a mere 3.18 million tonnes in 1981 to 86.17 million tonnes in 2001. In the same period, Gujarat's share of national port traffic increased from 45.36% to above 76% and has stayed there ever since. Modi's decade has not made that percentage grow. (TOI 5 Oct 2011) Gujarat shares in total traffic handling at Non -major ports in 2001-02 was 83.3% of total traffic in India but in 2009-10 it get down to 71.2%. During the same period Andhra Pradesh increased its share from 5.9% to 15.1%.19 Total cargo handled during 1990-91 to 2000-01 increased by more than 4 times but during 2000-01 to 2010-11 it increased by less than 3 times. 20 There were reduction of 108 post offices between 2003 and 2011. In 2005, 7.53% of cellular connections users in India were from Gujarat which came down to 5.71%.21 Electricity: Modi and his supporter have given more hype to states progress in electrification program of the state. They are claiming that every villages of Gujarat is getting uninterrupted 24 hour electricity supply. The Gross generation of electricity by Gujarat in 2011 was less than double of the figure in 2001. At the same time Haryana tripled its generation during same

15 16

Socio-Economic Review, Gujarat State 2012-13, p S-63 Socio-Economic Review, Gujarat State 2012-13, p 94; Socio-Economic Review, Gujarat State 2005-06, p 94 17 Socio-Economic Review, Gujarat State 2012-13, p S-68 18 Pankaj Vashisht and Gaurav Arya, Public-private Partnership: Insights from Infrastructure Development, edt. By Atul Sood, Delhi, 2012, table 4.5, pp 70-71 or 226; http://www.rnbgujarat/panchayat1.htm 19 http://shipping.gov.in/index1.php?lang=1&level=0&lnked=12&lid=55 20 Socio-Economic Review, Gujarat State 2012-13, p S-69 21 Socio-Economic Review, Gujarat State 2012-13, p 95; Socio-Economic Review, Gujarat State 2005-06, p 94

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period. 22 Total installed capacity of electricity in Gujarat during 1990s increased by 73% while during 2000s (Modis rule) it increased by 44%. Similarly the electricity generation in Gujarat during 1990s increased by 72.45% while during 2000s it increased by 42.52%. The increase in consumption of electricity in Gujarat was 143.97% during 1990s while 59.97% during 2000s. During 1990s the increase was highest in domestic sector, agriculture and in field of consumption for public water works while during 2000s the increase was highest in commercial and industrial sector while the consumption was decreased by around 16% in agriculture.23 The total subsidy for Agriculture on electricity in Gujarat increased merely from 3049 crores in 2007-08 to 3451 in 2010-11. While subsidy for domestic consumption was reduced from 451 crores 356 crores during the same period. In case of Haryana subsidy for agriculture and domestic consumer increased from 3122 and 416 crores to 4224 and 1174 crores during the same period. In case of TN figure jumped from 4422 and 3125 crores to 5924 and 5477 crores during the same time period.24 In 1991, as many as 17,940 out of 18,028 villages were already electrified. Electricity to 18 Lac Households in Gujarat is Missing. 25 (TOI 5 Oct 2011) 455885 applications are pending for agricultural power connection as on March, 2011. 26 Over 5.64 lakh power pleas are still pending from farmers who have sought power for their agriculture needs in Gujarat. Three fold increase in power theft in Gujarat seen from 2010-2013. (Indian Express 07 November 2013) That means state is not giving them connection but caught them if they use electricity. Gujarat Governments own documents revels that out of 12181718 total household in Gujarat, main source of lightning in 983813 household is Kerosene and other oil in 26155 household.27 On the contrary in 1992 the average monthly allotment of Kerosene oil by state was 83791 kiloliters which increased to 90641 in 2001 but reduced to 73074 kiloliters in 2005. 28 Gujarat is claiming that they are giving 24 hour electricity to villagers but if we take per capita expenditure on electricity in Gujarat its 15.547 Kwh per month. Per capita consumption of electricity by People from almost nine states or union territories is much ahead than Gujarat while five states are marginally behind of Gujarat. 29 But how we can expect people of a state like Gujarat to consume enough amount of electricity for themselves which has highest electricity duty in India. The tariff rate on electricity is 20% on rural areas if the consumption is less than 40 unit per month and if the consumption is more it will be 25% and 30%.30 Even on paper, the 24 hour electricity supply scheme needs close examination because the provision of 24 hour electricity supply in this scheme is meant only for household use and for the other purposes such as irrigation etc. In Jyotigram scheme the peasants are getting electricity 8 hour a day while at the turn of millennium they used to get 10 to 12 hour electricity while in 1980s the farmers were getting 18-20 hours electricity supply.31 The kind of excuse that state government is giving for providing less electricity for irrigation to the farmers are illogical. Gujarat government says that costly and limited supply of electricity for irrigation will make peasant realise the true value of electricity. They also argue that the costly and limited
22

Atul Sood, Annual Report of Ministry of Power, GOI, on the Working of State Power Utilities and Electricity Department, Planning Commission, Oct 2011 23 Socio-Economic Review, Gujarat State 2012-13, pp S-56-60 24 Atul Sood, 2012, & Annual Report of the Working of State Power Utilities and Electricity Department, Planning Commission, Oct 2011 25 (http://www.indiankanoon.org/docfragment/586218/?formInput=electricity%20duty%20doctypes%3A%20gujarat) 26 Ministry of agriculture, Gujarat, 2011-12 27 Socio-Economic Review, Gujarat State 2012-13, p S-95 28 Socio-Economic Review, Gujarat State 2005-06, p S-111 29 NSSO report 2009-10; published in 2012, p 41 30 Government of Gujarat, Legislative and Parliamentary Affairs Department, schedule 1, section 3 (1) (a), http://gujepd.gov.in/Electricity%20Duty%20Act%201958.pdf page number 12 31 Tushaar Shah & Shilp Verma, Co-Management of Electricity and Groundwater: An Assessment of Gujarats Jyotigram Scheme, Economic & Political Weekly, February 16, 2008, p 59

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supply of electricity to peasants also limit the use of excess water for irrigation and thus will help in curtailing the problem of ground water depletion. What a pity on a rich state like Gujarat that instead of arranging any alternative irrigation facility for peasants of the state they want to put most of the burden of curtailing the problem of ground water depletion on weakest and starving section of her population while giving free hand to capitalist in using ground water. Water: When Sardar Sarovar Yojana started, Gujarat government starts giving list of benefits that peasants and dry region of the state will have once the project will be finished but the condition of water supply is still bad. Out of total 12181718 household in Gujarat only 4853819 households are getting treated Tapwater.32 1750000 people i.e. nearly 30% population of Gujarat are getting untreated drinking water. The progress is only 15% during the past 18 years. Almost 94% of Narmada waters go to industries leaving Saurashtra and Kutch without water for most part of the year. (daily bhaskar 08 October 2011) Modi has constructed the dam very quickly but when it comes to connecting the dam with the area of peoples habitation more than 75% of the planned works of connection through canals still need to be started. Narmada dam was built quickly but another dam Kalpsar which was meant more supply of water to the common people was not started yet while it was sanctioned in 1998. According to Government of Gujarat the project could not be completed before 2020 so people of Gujarat still needs to wait for proper supply of water. (HT 13 April).

The prospective plan for the DMIC in the case of Gujarat on groundwater says Major uses for domestic and irrigation from groundwater are likely to leave hardly any balance for industrial use. The state policy of Gujarat would need to allocate water for industrial use from the resources for irrigation depending upon the priority and requirement in the investment regions of Gujarat. Not just that the Modi governemt has passed the Gujarat Irrigation and Drainage Act, 2013, which is a draconian piece of legislation. According to the Act, a farmer cannot install a bore well in his/her fields without government permission.33 We should remember here that it is same government who has given permission to TATA to harness ground water in NaNo car plant without any limitation. It is also important to note that this NaNo plant lies in a Dark Zone where use of ground water is prohibited for everyone. Earlier Farmer used to pay flat rate on electricity on agricultural use but now they have to pay according to bill. Its difficult to convince how recent Gujarat government is deciding her policies on keeping in the interest of poor and peasants of the state. In Gujarat out of total 225 blocks 57(2011) are dark zone blocks which was only 45 in 2001.34 On March 26, revenue minister Anandi Patel had declared water scarcity in about 4,000 villages and towns in 10 districts of Saurashtra, Kutch and North Gujarat. However, the opposition has said this is too little, too late. In Rajkot the water levels of all the reservoirs of the region came down to only 3% of its actual capacity. Similarly in Amreli its 8.92%, in Jamnagar its 0.43%, in Junagadh its 6.06%, in Porbadar its 1.11%, in Bhavnagar its 5.29%, in Surendranagar its 7.15% and in Kutch its 14.04%. ( HT 13 April) These are direct result of the unconditional use of water by the newly established industrial and commercial units in the region. These made the life of people associated with agriculture and its allied sector unbearable.

32 33

Socio-Economic Review, Gujarat State 2012-13, p S-92 (http://guj-nwrws.gujarat.gov.in/downloads/guj_irri_act_2013_eng.pdf). 34 Ministry of agriculture, Gujarat And annual report Narmada nigam, 2011-12; seminar: between the lies (http://www.milligazette.com/news/6712-rights-violations-rampant-in-gujarat-eu-delegation).

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Agriculture: Whatever achievement Gujarat achieved in large scale Industrial development, it was done at the expanse of agriculture and small scale business. In recent years Gujarat state is giving one sided importance to industrial and manufacturing sector and ignoring the agriculture and its allied sectors. This does not meant agricultural growth rate in Gujarat was worst then national average. Gujarat is not alone in posting agricultural growth rates above the national average; even backward Chhattisgarh and MP handsomely beat the all-India figure. During 11th five year plan Gujarats rank in agricultural growth rate is eighth. 35 During 1951-52 to 1972-73 the average increase in production of all crops in Gujarat was 4.44% while the national average was only 2.51%. This was so despite the fact that the rate of growth in total land under cultivation increased only by .43% in Gujarat while national average was 0.93%. The average agricultural growth rate in Gujarat during 2005-06 to 2010-11 was around 3.44% while during the same period of time agricultural land under foodcrops cultivation decreased from 4905 thousand hectare to 4735 thousand hectare. There has been a marginal decreased in the production of wool also. 36 There is radical structural change in orientation of agricultural production in Gujarat. The government agricultural policies are oriented towards facilitating the recourses of agriculture for the commercial and industrial use at cheapest rate. And that is why the non-commercial food-grains production recorded a decreased of around 8 Lakh tonnes in the year 2011-12 compared to the production in the year 2010-11. 37 CAG also criticized Gujarat government for not giving adequate importance to The farmers awareness campaign, Krishi Mahotsav etc which achieved only partial success, as the event touches only 35 to 45 per cent farmers. During 2007-12, over 12 crore of the Rs 82 crore released for the Krishi Mahotsav has remained unspent. According to CAG Management of soil health card in Gujarat was also found to be deficient. (TOI 13 May 2013) Corporate Loot: Whatever development the agriculture sector witnessed in recent years are done primarily in those selective fields where the interest of capitalist class can be fulfilled. For example, food crops such as wheat saw a drastic decline in its production during recent years while the commercial crops such as BT cotton which is dangerous for our environment, saw tremendous increase in its production. During last ten years 4,00,000 acres of agriculture and fodder land has been given to industries. In the name of encouraging investment, the kind of corporate loot of public property that Gujarat state not only allowed but facilitated to every extent cannot be matched with any other state. In terms of total investment MHs input is not more than 9% of Gujarats input but in terms of output MH output is almost 20% higher than of Gujarat.38 Among different ways in which Gujarat government has facilitated the public property of state for the private profits of capitalist, the benefits to capitalist through subsidies is most damaging. For example, sales tax subsidies to medium and large industries during 1999-2000 and 200607 constituted 72% of the total sales tax revenue of the state government and the total subsidies (including capital subsidy and interest subsidy) have been more than 10 times the total subsidies given by the state to agriculture and allied activities and to food and civil supply. 39 NaNo40: The case of NaNo car comes first in the list of capitalist loot at the cost of loss of states resources. In a deliberate bid to pursue TATA to establish her ambitious TATA NaNo Project (world cheapest car) the Chief Minister of Gujarat Mr. Narendra Modi took a decision which cost Government of Gujarat the loss of more than 33000 crore in her exchequer while the total annual budget of the Gujarat Government that
35 36

Gujarat economics and statistics department, govt. of Gujarat; (Seminar); & TOI 13 May 2013 Socio-Economic Review, Gujarat State 2012-13, p N-VIII-IX 37 Socio-Economic Review, Gujarat State 2012-13, p N-VIII 38 Annual Survey of Industries (factory sector) 2008-09, vol. 1, Govt. Of India, Ministry of Statistics and Programme Implementation, Central Statistics Office(Industrial Statistics Wing) Kolkata, pp 11-12 and 20 (http://mospi.nic.in/mospi_new/upload/asi/annual_survey_of_industries_2008-09__vol._i_.pdf) 39 Hirway, Shah and Sharma, Political Economy of Subsidies and Incentives to Industries in Gujarat, Some Issues, in Growth and Development under Economic Reforms: Case of a Fast Growing State in India, edited by Indira Hirway, Amita Shah and Ghanshyam Shah, 2013 40 (Telegraph 5 January 2009) (The Economic Times 10 November 2008) (Indian Express 4 March 2011)

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year was not more than 40000 crore. It is important to remind that this factory was first project in Nandigram (West Bengal) but due to protest of peasant of the area against land acquisition at token amount forced Government of West Bengal to retreat from her decision. Anyway, let come to the fact that for established this project in Gujarat, Modis decided to give a loan to TATA of 9570 crore at the interest of 0.1% for 20 years. This alone costs Gujarat Government a loss of 22,289.75. Let me clear out this also that the total cost of the TATA NaNo project is 2200 crore. Thus the loan given to TATA was almost five time of the projects cost. Above t hat Gujarat Government also bored the transport cost of relocating the project worth 900 crore from West Bengal (Singur) to Gujarat (Sanad). TATA was given the 1100 acre land for the project at the rate of Rs 900 per sq feet while the market price of the same land is more than Rs 10000 per sq foot and as per government provision the owner of land must be given three times of the market price for land. 41 Tata was given benefits to pay the amount of land in four years instalment. TATA got the land without paying any stamp duty. They also dont have to pay any duty on electricity used in factory. Gujarat government will also connect the site of factory with gas pipeline and four lane highway at States cost. TATA was given 1400 litter water per day without any cost and for additional water they got permission to pump underwater. It is relevant to note that this factory comes under Dark Zone where even peasant are not allowed to pump underground water. TATA is also exempted from the law which forces company to recruit at least 85% of worker in the plant from local population. This entire deal was mediated by Neera Radia who is now under trial in Indian court in number of fraud charges. Now since factory is ready and started production it is important to know that the factory is producing only one fourth of what they had promised before starting the project. When complain against this deal was lodged in court, Gujarat Government formed Shah Commission in which all members were from ruling BJP and thus any serious probe into the matter was denied. (19 August 2011, TOI) The toothless Lokayukta of the state also cannot interfere into any matter given by state government to any commission. Kurien betrayal: The State Government of Gujarat, in her bid to make corporate happy went to the extent of humiliating the non other then Bharat Ratna Verghese Kurien. Kurien opposed a move to transfer marketing power of cooperatives products (AMUL) from peasants to capitalists owned private companies , and saw in it a form of back -door privatisation. But Government of Gujarat under the supervision of Amit Shah used all kind of mischievous means to isolate Kurien on the issue. In what must be a major blow, Kuriens life -long control over the GCMMF has also been taken away. Faced by a noconfidence motion, Kurien was forced to resign from the chairpersonship of the GCMMF. One of the member Bharwad kept on insisting that other members should not attach too much importance resignation. (24 March 2006 TOI) Kurien then went to IRMA on but there also government humiliated him as his PA Joseph was called off from his duty by govt against which he even resisted. The kind of allegations were made against him are unbelievable. He was alleged for misusing corporative funds for personal uses, holding the post of chairmen of GCMMF for 17 years unconstitutionally, misusing his power for sacking people who differ from him etc. He was first opposed by Amrita Patel who tried to make joint venture with private companies against which kurien protested. When a Sex scandal noticed in Anand Ramesh Patel who was in video with a prostitute, Patel alleged Kurien as behind this. He also alleged that in 2002 Kurien had threatened him to give 65 lakh, a collection from farmers of kheda for a function to facilitate kurien for his personal use. The IRMA member demanded Kuriens resignation saying that he has been holding onto the post of the institutes chairman unconstitutionally for 17 year s. (TOI; Sept 7, 2005) On oct 2005 he was again elected chairmen of GCMMF. When the opposition of Kurien found it difficult to fight with Kurien from front, they used mischievous means. In Feb 2006 Kuriens nomination to the National Cooperative Dairy Federation of India was rejected under alleged defects over his candidature. It is seen as part of the ongoing battle between him and supporters of the National Dairy Development Board chairman Amrita Patel. VC Joshi(Returning officer at the additional registrar of co-operative societies of the state government) found defects

41

The NaMo Story: A Political Life(Biography of Narendra Modi) by Kingshuk Nag;

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and rejected the nominations of the five other members who are believed to be part of Kuriens lobby. ( Feb 16th TOI). on 19th March he resigned from the chairmen of GCMMF. After resigning he said I have been the chairman of GCMMF for 5 decades since its inception in 1973. Do i deserve this kind of treatment. While talking to TOI he had told that he was thrown out. they (Director of GCMMF) did not want me any longer. I had to resign, i was not given a choice. (9 Sept 2013 TOI). For the knowledge of people it should be remembered that it was the same Kurien who brought the White Revolution in the country. He was the same Kurien who collected 10 lakh rupee for financing the movie Manthan which was based on the story of birth of AMUL. He collected RS 2 from around half million farmers and movie was made but when no one was ready to screen the movie kurien again suggested to release it in cities of Gujarat where trucks full of farmers come to watch movie and later it screened even in other part of world. The movie got national award for best script. It went to even UN. Karnatakas Nandani followed the Amuls model and did that successfully but Gujarat under Narendra Modi changed that model. Kurien shocked the world by producing milk powder from buffalo milk. The incidences of corporate loots and use of mischievous means for benefits by capitalist in Gujarat can be uncountable. Take the illustrious IIM-Ahmedabad Board, chaired by AM Naik, chairman and managing director of Larsen & Toubro (L&T), known to be close to Modi. L&T was allotted 8,00,000 sq m of prime land in the industrial zone of Hazira, Surat, without auction, at the rate of Re 1 per sq m. Simultaneously, others were allotted 2,57,867 sq m of land at Rs 700 (or Rs 1,000) per sq m on survey No. 446/A of Suvali, Hazira, while the price fixed by the land committee was Rs 950 per sqr m. Even taking the rates between Rs 700 and Rs 1,000 per sq mtr, giving prime industrial zone land in Hazira is practically gifting it to the company for only Rs 80 lakh, thereby costing the state exchequer a few hundred crore rupees. 42 In Mahua, where the Nirma group had been given 3,000 hectares for mining activities and a cement factory, BJP MLA Kanubhai Kalsaria objected that the water tank the villagers depended on would be badly damaged. He was sidelined and subsequently, he resigned from the party to fight the government's policy. ( Indian Express 06 Sept 2013) Some of the other example of the corporate loot of land at token prices are: Land allotment to Adani Group for Mundra Port & Mundra SEZs; Allotment of Prime Land of Navsari Agricultural University (NAU) without auction for 7 star hotel to M/s. Chhatrala (India) Hotel Group Ltd; Prime Land allotment without Auction to Bharat Hotels Ltd. at SarkhejGandhinagar Highway at Ahmedabad. the land admeasuring 21,300 sq.mtrs. Lifting of the 8-kms ban on land purchase and allowing non-local, non-farming groups to enter the rural land market in 2005 gave a boost to land mafia in Gujarat. On may 17, 2005 Gujarat passed al law allowing and inviting big corporate houses and rich farmers for cultivating wastelands and common land. This was done where pasturalism has been one of the dominant profession. Kutch accounts for 39% of the total projects currently under implementation in the state. The district is preferred and praised on the grounds that it is easier to acquire land here, due to the fact that a lot of the land acquired is government land, which does not require the consent of individual owners and thereby limits protests around land acquisition. these lands which are classied as government land, barren or wasteland, also support the livelihoods of communities, who are protesting against their transfer for projects. The limited availability of water, lesser vegetation and harsh climatic conditions for agriculture means that there is much greater reliance on common resources such as mangroves, creeks, estuaries, the Rann, scrub forests, wastelands and rain-fed farm ecosystems. The corporates loot went on to the extent of the category of crime and use of illegal means. At least 17 scams about the Gujarat government have been brought under public scrutiny since 2011; the Krishna Godavari gas deal scam could be even bigger than the 2G Scam.( 30 November 2012 Telelka) ; (IBN Live 4 December 2012) Some of the example of the States favour to corporate houses through mischievious means are: In case of purchase of mineral mixture cattle feed, the company which was black-listed has been given order of purchase which was placed at the rate of Rs. 240/- per 5 KGs whereas market rate is of Rs. 120/- to Rs. 140/-. Amount of Rs. 9 crores has been paid more in the said purchase. Sujalam Suflam Yojana scam of Water Resources Ministry: Chief Minister have ordered to allot this work to GWRDC only to avoid the open competitive bidding and CAG audit. Expenditure of Rs. 1127.64 crores have been incurred upto 2008. Public Accounts Committee of Gujarat Assembly Unanimously prepared report having scam of more than Rs. 500 crores. Government have not allowed to table it in house. (Indian Express; 03 June 2009) According to CAG report allegedly there are Rs 16,706.99 crore worth of financial and land allotment irregularities with resultant negative impact on delivery on economic and development fronts in Gujarat. According to CAGs report of 2011 12, there were loss of 5000 crore done to state exchequer due to undue favour given to capitalist such as Reliance and Adani etc by the state government. When the issue came into media, the state spokesperson of BJP Mr. Jaynarayan went on to say

42

(http://www.hardnewsmedia.com/2012/07/5445?page=2#sthash.W1AE0yH8.dpuf);

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that CAG report meant nothing and suggested to table the report in state assembly but when it come to table the report the ruling party refused to tabled that. (India Today: 29th march 2012) CAG criticised Gujarat govt for her imprudent fiscal management and asked for greater professionalism and accountability in the functioning of govt. CAG said that Gujarat has incurred 41% higher debt than the previous fiscal and burdened the exchequer with heavy interest liability at a higher rate. CAG said that state government had taken a loan of Rs 15083 crore to adjust the monetary deficit of Rs 11027 crore, leaving a balance of 3645 crore which is poor debt management. Gujarat has invested Rs 39179 crore in corporations, boards, governments companies, rural banks and joint ventures. In the last five years, the average return on this investment was 0.25% while the state government has paid interest at the rate of 7.75%. CAG also criticised govt for not furnishing utilization certificate of Rs 9066.34 crore. (Economic Times: 8 holes CAG picked in Narendra Modis Gujarat development plan) The BOOT (Build Own Operate Transfer) policy initiative for port development involves royalty holidays instead of revenue sharing, permission to investors to adjust royalty against capital costs, freedom to developers to collect charges and tolls, land acquisition for private investors, 30 year window to make profits, special arrangements of forward linkages to private consortiums and SIRs and so on. States Income: To meet the cost of these huge subsidies and losses in the hand of corporate houses government was required to procure money from different means. Here also the Government followed the policy of protective discrimination for big corporate houses rich class against the smaller investor and common people of the state. The average tariff collected from commercial and industrial sector by Gujarat government is lower than average tariff collected by all states of India. In 2000-01 total land revenue collection by Gujarat state was 81.53 crore which increased to 1788.79 crore in 2010-11. While electricity duties increased from 1521 crore to 3262.64 crore during the same period and taxes on vehicles from 627 crore to 2003 crore. 43 Gujarat has highest diesel and petrol rate as it has highest VAT (23%). (TOI; 05 March 2012) Gujarat has 15% VAT on CNG & 5% on fertilizer. It is highest in India. (TOI; 28 February 2013) This indicate towards the state policy of disproportionate increase in collection from different sector of economy while giving special favour to capital intensive big corporate houses and ignoring the interest of labour intensive small scale industries and agriculture. This one sided policy of Gujarat government to favour capital intensive business and corporation can also be seen in decreasing amount of capital receipt of state. The capital receipt of Gujarat decreased from 24624 crore in 2002 to 17055 crore in 2010-11. Total receipt increased to 69419.25 crore in 2010-11 from 42499.52 crore in 2002-03 while total expenditure increased from 42192.51 crore to 71629.08 crore. This mounting difference between capital receipt and total receipt is largely due to increasing spending of state on paying interest on debt. In 2002-03 Gujarat was paying 4948.76 crore as interest which increased to 9627.32 crore in 2010-11. 44 The tariff structure in Gujarat is also in favour of commercial and industrial use, the average tariff in these sectors is not very high than the national average and lower than some o the other industrially developed states, while in case of agriculture the average tariff is much higher than the national average. One major reason for large units favouring capital- intensive technology is that capital is made cheap through large monetary and fiscal incentives and subsides offered to them by governments. The rates of incentives and subsidies increase with the size of the units. The incentives to the large and capital intensive corporate unites add up to 40% of the total public expenditure while incentives to small and medium units constitute a mere 2.27% of the total incentives given to industries. Though there are high subsidies on capital, land and water, there are no subsidies on labour or on employment. 45 It is not that labouring poor of Gujarat never reacted against this close nexus of politician-corporate nexus and their loot of public property. The Economic Times survey of 2011, listed Gujarat on the top, as the worst state for labour unrest Gujarat witnessed highest number of strikes and other form of labour unrest.(Atul Sood 2012) (25 Feb 2011, Economic Times)Wage and allowance, bonus, personnel, indiscipline and violence and financial stringency were the major reasons for these strikes and lockouts. (Atul Sood, 2012) (Indian express, February 25, 2011) Debt: Despite huge amount of collection from the common people there were drastic increases in debt on states account. The states total debt was less than Rs 10,000 crore when the BJP first came to power in Gujarat in 1995. The State Debt for Gujarat increased from 45301/- crore in 2002 to 138978/- crore in 2013. States debt of West Bengal and UP is 19200 0/- and 158400/- crore respectively. Gujarat has decided to borrow a fresh loan of 26009 crore during fiscal year 2013-14 which will increase debt on state to 164987 crore. The debt on Gujarat would mount to Rs 2,07,695 crore as per the state governments
43 44

Socio-Economic Review, Gujarat State 2012-13, p S-104; Socio-Economic Review, Gujarat State 2005-06, p S-120 Socio-Economic Review, Gujarat State 2005-06 & Socio-Economic Review, Gujarat State, 2012-13 45 Indira Hirway, Partial View of Outcome of Reforms and Gujarat Model, EPW, October 26, 2013, vol xlviii no 43

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budget estimates by 2015-16.46 If we divide debts of states with population of respective states each Gujarati has debts of Rs 27297/- on their head while figure for West Bengal and UP is Rs 21046/- and Rs 7927/-. Gujarat is paying 14.30% interest on these loans which force each Gujarati to bear Rs 3903 as interest against loan taken by Gujarat Government. It would also be irony to note that the same Gujarat Government is giving loan to TATA at the rate of 0.1% interest. In 2013-14, the government plans to raise fresh loans to the tune of Rs 26,009 crore. Of this amount, Rs 19,877 crore, that is 76 per cent, will be used to pay the principal and the interests of the existing debts. (Indian Express 5 September 2013) Debt on Gujarat during Narendra Modi rule consistently increased. Years 2001-022007-082009-102012-132013Total Debt Rs.48,300cr. Rs.79,309crRs.98,009cr. Rs.1,38,978cr. Rs.1.76,000cr. Interest Rate of Loan. 9.71% 13.16% 14.24%

This has been so because state have not collected legitimate amount from the capitalist and rich section of society. The revenue deficit of Gujarat state in 2000-01 was 6302.23 crore while in 2010-11 it was 5076.38 and 2009-10 it was 6965.90 crore. The fiscal deficit was 7965.27 crore in 2000-01 and in 2010-11 it was 15153.27 crore.47 This becomes Rs 17,831 crore in 2012-13. (20 February 2013 Business Standard) In 1999-00 Gujarat was spending 15% of its revenue on interest payment which was higher than only TN but by 2007-08 Gujarat is spending 25% of its revenue on interest payment which is highest among all the states and average of all states.48 The kind of excuses the Gujarat Government gives against the allegation of facilitating this kind of corporate loot and increasing amount of debt on state are the discriminatory policy of Union Government of India against them for not allocating fare amount for developmental works and that these investment from debt generated extensive amount of employment in the state. CAG reported that Central govt allocated Rs 292 crore for computer literacy and education but only Rs 88.24 crore was used. Similarly, for special courts, Rs 629 crore was granted, but only Rs 252.45 crore was used. In the roads and buildings department, Rs 957.95 crore was allocated for constructing offices, but not even half the amount spent. (Economic Times; 8 holes CAG picked in Narendra Modis Gujarat development plan) It seems that current Gujarat state dont have any interest in computer education or improvement in justice system because a better justice system or transparent governance system might prevent her officials from doing fake encounters and other illegal works under the supervision of state. One should also think that how can Gujarat government manage money and times for these works especially when she is providing huge amount as much as close to her annual budget to a single company(TATA) and that also at 0.1 per cent interest. Another possible reason for increasing problem of debt management and fiscal deficit in the state might be the governments one sided favour for the capital intensive system of economic development. This capital intensive system of economic development affected not just the debt sheet of the state but also the issue of unemployment. The capital intensive unit of production uses latest technology which needs less physical labour and thus this kid of production produces less sources of employment than labour intensive where most of the work is supposed to be done by physical labour. They choose to buy costly latest technology to decrease the dependence on physical labour not because there is shortage of labour force but because they can easily get financial help

46 47

Director, Department of Economics and Statistics, Government of Gujarat. & Gujarat assembly, question hours, 2011-12 Socio-Economic Review, Gujarat State 2012-13, p XIV and Socio-Economic Review, Gujarat State 2011-12 p XXXI 48 Sood, 2012, RBI, Handbook of Statistics on State Government Finances

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from government to buy most costly machine but its difficult for them to force a democratic state to facilitate them cheaper labour force. Employment: As expected in a capital intensive economic system, the investment is Gujarat is well ahead of number of other states, but employment generation from those investment is worst in compare the amount of investment. State ignored the labour intensive investment. Gujarat account 5% of Indias population, 7% of Indias GDP, 14% of Indias manufacturing gross value added, 18.6% of fixed capital, 10% of total number of factories but only 9% of employment. 49 During 2006-10, Gujarat signed MoU worth Rs 5.35 lakh crore with potential of 6.47 lakh jobs. But MH and TN with Rs 4.20 lakh crore and Rs 1.63 lakh crore worth MoUs, expect about 8.63 lakh and 13.09 lakh jobs. Tamilnadu (18.9 lakh) has 20% more population than Gujarat but giving employment to 77.5% more people than what Gujarat (11.6 Lakh) is giving. But in terms of Gross value added Gujarat is 50% ahead of Tamilnadu even though Gujarats input is much higher than Tamilnadu. Gujarats rank in this term is 15th. 50 In 2000-01 total number of factories in Gujarat was 14090 which were producing 752013 employment and 16856 crore net value added. In 2009-10 the total number of factories increased to 15576 which produced 1159239 employment and 90028 crore value added. The increase in number of factory during 2000-01 to 2009-10 was 10.54% while in employment it was only 54% while increase in net value added was 434.10%.51 The question that needs to be asked is why there is this kind of imbalance between total production and total employment? It is clear that the objective of the Gujarat government is to facilitate the big corporate houses in increasing production and profit from those production instead of generating more employment in the interest of working masses of the population. Gujarats contribution to Indias total employment generation is 10.14% but her contrib ution to value of output is 17.22% while only 12.55% in net value added. That mean Gujarats output is 17.22% but she add only 12.55% value to indias wealth. Where the other 4.7% go? Of course, it goes to capitalist in form of subsidies. 52 This was not the case always with Gujarat. In 2002-04 the value of output was 16.07% while the Net Value Added was 19.77% of the Indian figure. 53 This mean that Gujarats contribution in Net Value Added was far ahead of the her contribution to total production while oppos ite became the case in recent years. This cannot be considered as the good indication for an economy. It is the policy of favouring capital intensive production system by Gujarat government which could be blamed for relative bad performance of state in employment generation. In last 5 years the employment remained stagnant in Gujarat. NSSOs data shows that the growth rate of growth of employment in Gujarat during 1993-94 to 2004-05 was 2.43% which reduced to near zero per cent during 2005 to 2010. Unemployment rate in Guj in 2009-10 is 9.9% while the national figure is 9.3 and 5.8 for TN, 5.9 for MH and 8.6 for Haryana. 54 It rose to 10% in 2011-12 for Gujarat. The total number of educated unemployed as per registration in employment exchange has been increasing while total uneducated unemployed is decreasing which mean that the kind of employment is generated in Gujarat is fit for uneducated. 55 Probably, this is the reason why most of the worker emigrating to Gujarat are least educated people from Bihar while the well educated people are preferring places such as Delhi, Bombay etc for their employment. The CAG report of Performance Audit of MGNREGA revels poor performance of Gujarat. In terms of its benefits to the female worker Gujarats performance is 50% lesser then national average. In terms of awareness among the worker about the number of days they worked or entitlement they have, the performance of Gujarat is worst then even Odisha and Bihar. This affected the situation of unemployment in Gujarat.56 And in case of government services, there were no Public Service Commission exam has been held for 10 years. (20 July 2013 Asian Age) If we can believe the Gujarat Governments own official Annual Socio-Economic Review, In 2000-01 the total employment in Gujarat was 16.22 lakh which increased to 21 lakh in 2010-11 which mean an increase of 3.78 lakh in total employment. But in 2000-01 the number of total employment seeker in state was 10.67751 lakh which reduced to 899 which mean a
49 50

Atul Sood, 2012, p36 Annual Survey of Industries (factory sector) 2008-09, vol. 1, GOI, pp S-2-1, 11-12 and 20 (http://mospi.nic.in/Mospi_New/upload/asi/Annual_Survey_of_Industries_Vol_I_2009-10.pdf) 51 Socio-Economic Review, Gujarat State 2012-13, p XIII and Socio-Economic Review, Gujarat State 2011-12 p XXIX 52 Socio-Economic Review, Gujarat State 2012-13, p 25 53 Socio-Economic Review, Gujarat State 2005-06, p XIV 54 Atul Sood, 2012, p 269, table 9.1 55 Socio-Economic Review, Gujarat State 2012-13, p S-84 56 http://www.icisa.cag.gov.in/performance%20audit/performance%20audit%20reports/performance%20audit%20%20report%20on%20nat ional%20rural%20employment%20guarantee%20act/introduction.pdf (http://www.accountabilityindia.in/accountabilityblog/2640highlights-cag-performance-audit-mgnrega).

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decrease of 10.66952 lakh. It seems biggest joke if total employment increased during this period was less than 4 lakh how can the number of people seeking job decreased more than 10 lakh during the same period. 57 The share of Industry in GDP increased in Gujarat during 2004-05 to 2009-10 but its contribution to employment generation decreased.58 During 2001-2008 the employment growth in Mining and Quarrying sector was -2.4%; in construction it was 2.8%; in Transport, Storage and Communication it was -2.9%.59 Gujarat ranks first in terms of direct industrial license but ranks seventh in employment; TN ranks seventh in investment in IEMs (Industrial Entrepreneur Memorandum) but ranks first in its share of creating employment from this investment. Th e contribution of Gujarats manufacturing sector in generating employment remained stagnant while share of Gujarats manufacturing sector in Indias total m anufacturing increased rapidly. On the other hand, TN did well in this aspect with a balanced growth of both employment and production. In second half of 2000s employment generation in manufacturing sector of Gujarat became negative with -2.6%.60 even though it did well in development rate of manufacturing sector.61 The GDP growth rate of agriculture during 2004-09 was 3.19 while growth in employment in this sector was -1.59%. GDP growth rate of Manufacturing was 9.6% while growth rate of employment in this sector was -2.3% (in rural area it was -4.66% and for women its -22.18). During the same period In Haryana the GDP growth in Manufacturing was 7.48% and employment growth in this sector was 3.72%. During 1993-94 to 2003-04 GDP growth of Manufacturing was 6% while growth in employment in this sector was 3% (during 1999-00 it was 0.69).62 Nearly 50% of net employment generated in Gujarat in the last two decades has come from service sector and followed by 30% from agriculture but Government is ignoring these sector continuously. During 1993-4 to 2009-10, the employment by agriculture sector was increased by 76% in rural Gujarat while in case of Manufacturing it was reduced by 17% and increased by 28% in urban Gujarat. The highest growth rate of employment at national level has been seen in construction sector but in case of Gujarat it is agriculture sector and not construction which saw the highest employment growth rate. This means that people are being forced into the sector of agriculture. 63 In 2004-04, 49.9% of employment was in primary sector which increased to 54.4% in 2008-09 which mean dependence of people of Gujarat on agriculture etc is increasing which the contribution of secondary and tertiary sector is decreasing. 64 This means that peoples dependency on primary sector for employment has been increasing which should have decreased in normal case of development. Textile is most employment generating industry but recent Gujarat policy ignored this sector. In 2010 the investment in textile industry is only 1.54% of the total investment while it generates 10.89% of total employment. Till 1990s investment in textile industry was around 10%. On the other hand investment in infrastructure sector constitutes 37.59% of total investment and its share in employment generation is only 21%. 65 Thus Gujarat shifted from employment intensive model of development to capital intensive model of development. In 2009-10, the capital per worker in Gujarat was around Rs 26 Lakhs, which was way above the all India average of Rs 14.76 Lakh.66 The share of wages in the Net Value Added in ASI (Annual Survey of Industry) Sector in 2001-02 was 14.96% which came down to 5.71% in 2010-11.67 Work participation rate in Gujarat for the year 2009-10, as per the labour bureau report was 48.9% which is the sixth highest in the country. In 2011-12 it slipped to 7th position. In terms of LFPR also Guj is on 7th position.68 The growth rate of labour productivity in Gujarat during 1980s was 14.45% which became 7.96% in 2000s. But in case of India it shots up from 7.77% to 8.52, and in MH it increased from 11% to 13%. 69 Gujarat has experienced a very low employment elasticity of output and lowest shares of wages in GVA in India, one of the highest use of contract workers in the organised manufacturing in the country and rising trends of casualization of the workforce. As Atul Sood points out, contract workers in the organized manufacturing sector currently constitutes around 37 per cent of the total workers, up from 27 per cent a decade ago. This means that what Narendra Modi did is to shift the labourers from

57 58

Socio-Economic Review, Gujarat State 2012-13, p XIV and Socio-Economic Review, Gujarat State 2011-12 p XXXI Atul Sood, p 241, table 6.1 59 Socio Economic Survey 2008-09, Govt of Gujarat, 60 Atul Sood, 2012, p 241, table 6.1 61 Atul Sood, 2012, p 258, Table 8.5 62 Atul Sood, 2012, p 256, Table 8.1 63 Atul Sood, 2012, p 256, table 8.2 64 NSSO and Socio Eco Review of Gujarat 65 Atul Sood, 2012, p 221, table 3.4 66 Santosh Kumar Das, Sources and Patterns of Private Investment in Gujarat, edt. By Atul Sood, 2012, p 59 67 Indira Hirway & Neha Shah, Labour and Employment in Gujarat Economic & Political Weekly, November 5, 2011 vol xlvI No. 44 & 45, p 63; and http://mail.mospi.gov.in/index.php/catalog/142/download/1622 68 Atul Sood, 2012, pp 35-36 69 Atul Sood, 2012, p243, Table 6.5

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unorganised sectors to organised sectors by destroying unorganised sector and small scale industries which is also called informalisation of formal sector. In 10 years 60,000 small scale industries have been closed down. 70 The total number of Residence cum other use of census houses in Gujarat decreased from 542930 in 2001 to 416806 in 2011. These kind of Residence cum other use of census house found mostly in Rural areas as in 2001 out of total 542930 this kind of houses 474462 were in rural areas. Thus this decrease affected the rural Gujarat most.71 The decrease in this kind of houses simply mean that Gujarat state is discouraging people who has been doing micro business or micro-firms in their own residence in rural areas. Gujarat government is providing subsidy of maximum 3.33% for self employment in industry and that also, if your units cost is more than 5 lakh. (Shree Vajpayee Bankable Scheme").72 In Gujarat SSI (small Scale Industries) units has increased from 29% in 1985-86 to 90 percent in 1997-98. most of the units took the form of individual proprietorships or partnerships, with a share of 52 per cent and 44 per cent respectively, followed by limited companies (3.4 per cent) and cooperatives (0.2 per cent). 73 In 2002-03 total number of members of agricultural societies were 7901000 which came down to 7119000 in 2010-11. One can imagine how brutally Gujarat government has recovered the loans given to peasants if he or she looks at the comparative figure of amount given to peasants as loan and the amount that has been recovered from them in recent years. The total loan given to peasants in 2002-03 was 345560 lakh out of which only 168439 lakh were recovered but in 2010-11 out of total 384719 lakh loan given to them 363148 lakh were recovered. But there is hardly any change in % of loan recovery of non agricultural loan. When it comes to Land Development Banks the amount of loan recovery is much higher than total loan dispersed during 2002-03 to 2010-11. And so is the case with Co-operative Banks in terms of recovery of loans.74 A total 62 cooperative banks went bust in the last five years with states investor loosing over 2000 crores. (TwoCircles.net 21 January 2009) This means that Gujarat denied loan for agricultural community and for self employment and even if some manage to get loan they are being harassed by state who use more coercion for recovery of loan and thus discouragement to self employment. The discouragement in self-employment is not due to more encouragement in wage employment. The growth rate of wage in Gujarat during 1990s was 3.70% which became 1.48% during 2000s but in case of all India level it increased from 1.54% to 3.78%.75 In terms of annual wages per worker Gujarat stands at 10 th position.76 According to NSSO 2011 figures, the average wage a labourer in the informal sector in urban areas can expect in Gujarat is `106 against `218 in Kerala. (20 July 2013 Asian Age) According to 68th round (2011-12) Gujarat has among the lowest average daily wages for casual labour (other than in public works) in urban areas: Rs 144.52, when the national urban average is Rs 170.10. (5 Sept 2013 Indian Express) In terms of wages to casual workers to rural male the rank of Gujarat slipped from 9 th in 1999-00 to 14th in 200708. In 1999-00 Gujarat was very close to National average but in 2008-09 Gujarat is at 68 rupee while national average is 75 rupee at constant price. Very similar is the case with Urban female during the same period. In case of regular worker also Gujarat ranks 17th in rural male, 18th in urban male, 13th in urban female and 9th in rural female.77 In addition to poor gains in employment, the manufacturing sector in the State is also characterised by slow growth in wages (1.5 per cent in the decade of 2000 when the all-India wages grew by 3.7 per cent), increasing use of contract workers ( from 19 to 34 per cent between 2001-08), and overall reduced position of workers in the manufacturing sector (with the lowest share of wages in Gross Value added in the decade of 2000s in comparison to Haryana, MH and TN). There were sharp regional differences in employment outcomes with rural Gujarat experiencing negative growth rates in the last five years. Only 6% regular employment in Gujarat went to rural areas in compare to 12 % at national level. Rural worker are being pushing towards construction and agriculture while keeping them away from manufacturing and services. During 2004-05 to 2009-10 the employment Growth Rate in rural area in agriculture was -1.7%; in Manufacturing it was 7.9%, in services it was -2.3% while 6.1% in Construction. In 2004-05, 43.5% employment of Gujarat were in the hand of people from south Gujarat when come down to 36% in 2009-10. 78 The proportion of people who are self employed in southern and North plain where spread of tribal population are most extensive, went up while in other region it went down which meant that tribals and dalits of these region have to arrange their own employment.

70 71

Director, Department of Economics and Statistics, Government of Gujarat.2011-12 Socio-Economic Review, Gujarat State 2012-13, p 89; Socio-Economic Review, Gujarat State 2005-06, pp S-92-93 72 Socio-Economic Review, Gujarat State 2012-13, p 28 73 Govt of Gujarat, Industries in Gujarat (Some Statistics), Industries Commissionerate, Gandhinagar, 1992, p-16 74 Socio-Economic Review, Gujarat State 2012-13, p S-48 75 Atul Sood, 2012, p243, Table 6.6 76 Atri Mukherjee, Monsoon 2011, p 118, table 5, http://rbidocs.rbi.org.in/rdocs/Content/PDFs/OCRIF261012_SN1.pdf) 77 NSSO 1999-00 and 2007-08 78 Atul Sood, 2012, p 257, Table 8.4 & 8.13(NSSO 50th, 61st and 66th round,)

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Consumption: Government is favouring capital intensive system of production and large scale production system because the production capacity and rate of production under this system has always believed to be ahead of production under labour intensive and small scale system of production. The advocate of capital intensive system of production believe that rapid increase in rate of production will always led to cheaper availability of products and thus better per capita consumption which is best indication better level of life. But the advocate of capital intensive system of production, forget to mention that their hypothesis can work only if system also ensure fare distribution of those increased production and profits to the downtrodden population of the society. In reality, most of the increased production and profits became concentrated in the hand of capitalist and to some extant in the hand of tiny middle class of the society while the situation of downtrodden part of society further deteriorated. In agriculture, capital intensive system of production led to waste land. During 1998-99 and 2006-07 the growth rate of fallow land in Gujarat was with almost 10%. The peoples participation rate in rural Gujarat increased till 2004 -05 but after that it declined rapidly which means that real inhabitant of rural Gujarat are being forced to detached herself from the rural economy. Whatever increase we saw, it has been in agriculture sector which mean dependence on agricultural economy for employment has consistently increased in last decade.79 Under this system of rural economy, the capitalist investors capture and destroy the common land meant for grazing, pond, etc in the past. This destroys the diversity of the rural economy which increases the possibility of natural disasters. Though as we have already seen that there are other states in India whose average production is better than Gujarat but even if we decide to believe that in terms of total production, and income Gujarat is one among the best performing state in India, Gujarat performance in terms of average consumption level is worst in relation to its production level. And thus in this ways Gujarat here is far away from normalcy of the theory given by advocates of capital intensive system of production. In terms of per capita consumption expenditure, Gujarats performance in the decade 1993 to 2004-05 compared better than the last five years. 80 NSSO report states that the urban MPCE was 49 per cent higher in towns and cities than in villages in 1993-94. Fourteen years later, the urban MPCE was 68 per cent higher. (5 Sept 2013 Indian Express) Gujarat proudly claims that she is one of the largest producers of milk in India but when it comes to consumption of milk, the story is different. Per capita consumption of milk (litre) is 6.178 and 6.750 in rural and Urban Gujarat. In comparison to this Delhi, Harayana, Himachal Pradesh, Jammu and Kashmir, Punjab, Rajasthan, Uttrakhand, Chandigarh is consuming more than any Gujarati. (Source: NSS Report No.541: 2009-10; Household Consumption of Various Goods and Services in India ; p 38). The growth in consumption of electricity in Gujarat was 143.97% during 1990s while during the one decade rule of Modi the growth was only 59.97%. Gujarat is claiming that they are giving 24 hour electricity to villagers but if we take per capita expenditure on electricity in Gujarat its 15.547 Kwh per month. Per capita consumption of electricity by People from almost nine states or union territories is much ahead than Gujarat while five states are marginally behind of Gujarat. Bihar at lowest with only 1.333.81 Gujarat government might give another hypothesis for explaining the reason for bad consumption level in the state, by saying that the people of her state is investment friendly and thus they prefer to save their increased income for further investment. But this hypothesis also cannot work in case of Gujarat because per capita deposit ratio in the state is not good. In terms of credit-deposit ratio, Gujarat is far behind others. In 2010 it was 4.70% in Gujarat while the same for MH, Karnataka and Tami Nadu was 29.75%, 6.71% and 9.61% respectively. The amount of per capita deposit and per capita credit for Gujarat was Rs 37,174 and Rs 24,268; while for TN, it was Rs 42,580 and Rs 47,964; for Karnataka it was Rs 49,598 and Rs 38,154;

79 80

Atul Sood, 2012, p 256, table 8.2 (NSSO 50th and 66th round) Atul Sood, 2012, p 249, Table: 7.1 81 NSSO report 2009-10; published in 2012, p 41

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and for MH it was Rs 1,10,183 and Rs 89,575. Even Kerala did better than Gujarat with Rs 43,890 and Rs 27,912. (11 June 2012, TOI) Better production and better income is always taken as precondition for the better health, better education, and improved condition of other aspect of life and thus better position in HDI. It is also assumed that higher income of state will follow higher state expenditure on different social welfare schemes, but picture of Gujarat is different. In terms of share of developmental expenditure to total expenditure till 1999-00 Gujarat was much ahead of the most of the developed states and national average but by 2007-08 MH and TN went ahead of Gujarat and the gap between Gujarat and other states became very narrow. In terms of share of expenditure on education to the total expenditure Gujarat was ahead of the average of other develop states in 1995-96 but by 2007-08 Gujarat is at lowest spot.82 This deteriorating condition of life of Gujarat people is applicable to other aspects of life also and all these are because of state negligence to important aspect of governance such as introduction of enough government schemes for weaker section of society and efficient implementation of declared schemes. The state of conservatism in the very heart of the policies of Government reflect in states priorit y towards the investment in peoples awareness campaign and other ways of eliminating those social and economic evils from the society. According to RBI, Gujarat was ranked 17 among the 18 largest states in India in terms of spending on social sector which was just 31.6% of the budgetary expenditure State. 83 (TwoCircles.net 21 January 2009) There is hardly any emphasis on awareness campaign for reduction of population. The population growth rate during 2001-2011 for Gujarat is 19.17% while for India its 17.64%.84 Between 1999-2000 and 2007-08, the human development index increased by 0.06 points. The dividends of the rapid economic progress are yet to be translated into improvement in the quality of life of the people of the state. 85 The slipping of the state in its ranks in the different aspects of human development has been shown not only by IFPRI (2009), but also by UNDP (2011), Planning Commission (2009), Shukla (2010) and the recent National Family Health Survey (NFHS) and NSSO reports. Human development index the state slipped from the 5th rank in 1996, to the 9th rank in 2006 and 11th in recent years. Health: In terms of PQLI (Physical Quality of Life Index) Gujarat was at much better position in 1991 than in 2011. In 2011 she returned to where she was in 1981. (Sample Registration System (SRS), Office of the Registrar General India, Ministry of Home Affairs) In 2011Gujarat had a death rate of 6.7 death per 1000 persons which was very close to the national average of 7.1. There were number of states which had much better performance than both national average as well as Gujarat. In terms of expectation of life at birth also, the difference between Gujarat and India is only marginal, 66.8 years and 66.1 years respectively.86 In Gujarat, the LEB (life expectancy at birth) during 2002-06 was 64.1 years and it ranked ninth among major Indian states. (TOI, 11 June 2012) The infant mortality rate in Gujarat in 2001 was 5 lesser than Indian level but in 2007 it became one point higher than national average. Over time from 1990 to 2010, the rate of decline in infant mortality rate has been slower than the national average. Gap between urban and rural IMR in Gujarat is worse than national average. In terms of Infant Mortality Rate or Under 5 Mortality rate Gujarat is worst than major states and national average. In case of Infant Mortality rate West Bengal (rank 4) is far better than Gujarat (rank 7).87 The rank of Gujarat further became worst with eleventh spot (20 July 2013 Asian Age) and then in latest report at thirteenth (NSSO). It is the worst performer in child malnutrition with 69.7% of children up to the age of ve are anaemic and 44.6% malnourished while 40 per cent are underweight. (27 July 2013 Economic Times) The latest NSSO report Gujarat was ranked 13th in infant mortality rate, 14th in child mortality rate and 9th in children malnutrition. Gujarat has the largest number of Malnutriant children and mother as 55% women are anemic. (Frontline 23 Feb to 08 March 2013 ) The UNICEFs State of the Children Report 2012 confirms that every second child under the age of five in Gujarat is undernourished and three out of four are anaemic. (20 July 2013 Asian Age) In Gujarat Maternal Mortality Ratio decreased by 48% during 1991-2001 while the rate of decrease was only 26% during 2001 to 2011. 88 Slow decline (slower than most states) in infant and maternal mortality rates, as well as slow progress in immunization of children, poor availability of potable drinking water and safe sanitation are the major reason for the bad health condition in Gujarat. 89 (Census of Population 2011)

82 83

Atul Sood, 2012, RBI, Handbook of Statistics on State Government Finances Indira Hirway, EPW 84 Socio-Economic Review, Gujarat State 2012-13, p N VII 85 Socio-Economic Review, Gujarat State 2012-13, p N-X 86 Socio-Economic Review, Gujarat State 2012-13, p N-X 87 Atul Sood, 2012, pp 274-5 88 Socio-Economic Review, Gujarat State 2012-13, p 50 89 Indira Hirway, EPW, p 27

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According to an Indian Institute of Public Administration report only about 43 per cent of children under ICDS in the state are of normal weight. (5 Sept 2013 Indian Express) As per NFHS III - 49.2% of the state's children are stunted and 19.7 % are wasted. It was realized that malnutrition among women, adolescent girls and children is the underlying cause of deaths due to common ailments. Thus State Government has given priority to malnutrition control activities. Hon'ble Chief Minister has launched "Mission Balam Sukham'' on 18-09-2012 under Gujarat State Nutrition Mission to combat malnutrition in Gujarat. There are also other programs but very late in recent years.90 The performance of Gujarat in vaccination is worst in compare to TN or Haryana.91 There was hardly any serious attempt from the side of Gujarat government for the betterment of the health condition in the state. In terms of Average Expenditure for Hospitalization in Government Institutions in Gujarat increased its expenditure from 1465 to 2253, Haryana from 2667 to 11665 and India from 2195 to 3877 rupee during 1995-96 to 2004.92 In terms of per capita spending on medicine Gujarat ranks 25th.93 In 2000-01 the number of primary health centers was 1001 community health Centers was 244 and sub-centers was 7274. In 2011-12 the first two increased to 1158, 318 unit while the number of sub-centers remained same.94 In terms of Per Capita Health Expenditure the rank of Gujarat slipped from 4 th in 1999-00 to 11th in 2009-10 while during the same period Assam improved his position from 12th to 3rd and UP from 15th to 9th. In terms of Health Expenditure as a Share of Total Expenditure Gujarat was spending 4.39% of its total expenditure on Health in 1999-00 but in 2009-10 it come down to 0.77%. In terms of Health Expenditure as a share of NSDP the proportion by Gujarat went down from 0.87% to 0.73% while the average of major states increased from 0.95% in 1999-00 to 1.04% in 2009-10. TN and Assam almost doubled her expenditure during the same period. 95 Delhi is providing 1000 as old age pension while Haryana, Chandigarh is providing 700, Pondicherry 600, MH 500, Punjab 450, and Gujarat, JH, Karnataka, Rajasthan, Uttarakhand, TN and WB 400.( Annual Report 2009-10; Ministry of Rural Development; Page 46). How can we expect good health system in Gujarat when Doctors in rural areas are being paid `10,000 per month for the last 10 years? (20 July 2013 Asian Age) According to census report 2011, 67% of rural households in Gujarat do not have toilet. (The Hindu 26 September 2012) Education: Gujarat saw deteriorating quality of primary education in the last decade, and declining rank in literacy from fourth in 2001 to ninth in 2011 among the 20 major states.96 The rank of Gujarat in terms of literacy rate for child above 6 years was 19th during 55th round of NSSO which slipped to 21st position in 64th round. Literacy among age above 6 year in Gujarat increased by 5.8% between 1999-00 and 2007-08 while the national performance was far better with the rate of 10.1%. In the areas of MYS (mean years of schooling) and SLE (school life expectancy), during 2004-05, Gujarat was ranked seventh and ninth, respectively. Kerala ranked first in all three indicators. Even MH, Himachal Pradesh, Punjab, Haryana, TN and Karnataka performed much better than Gujarat. (TOI 11 June 2012) UNDP has placed Gujarat at the 18th position in keeping children in schools. (20 July 2013 Asian Age) Rank of Gujarat in terms of percentage of persons currently attending any educational institution went to 30th from 23rd in the age group of 6 to 29 year and 21st to 26th in the age group of 6 to 14 years. In terms of percentage of people attending professional or technical education in
90 91

Socio-Economic Review, Gujarat State 2012-13, pp 54-55 Atul Sood, 2012, p274, Table 10.1 92 Atul Sood, 2012, p283, Table: 10.18 93 NSSO report 2009-10; published in 2012, p 42. 94 Socio-Economic Review, Gujarat State 2012-13, p XIV and Socio-Economic Review, Gujarat State 2011-12 p XXXI 95 Atul Sood, 2012, pp 281-82 Table: 10.15, 10.16 & 10.17 http://www.mohfw.nic.in/NRHM.htm> 96 Indira Hirway, EPW, p 27

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Gujarat is not more than national average and far behind MH and TN.97 The gap is worst in case of age group of 21-29 (Higher Education), Only 2.6% Gujarati in the age group of 21-29 years are attending any educational institutions. Gujarat has less graduates and post graduates than national average. The matter is very clear, the state government of Gujarat is not interested in encouraging higher education. And that is why the proportion of graduate and post-graduate in the Gujarat is far lesser than national average. In terms of Gap between general category and backward category, Gujarat is at top.98 For the same age groups (6-14 Years) i.e for above primary and secondary school education the access of women, SCs, STs, Muslims and other minorities is again lower than the national averages. In terms of per capita spending on consumption of Books and journals by common people, Gujarat ranks 24 th. In terms of per capita Spending on Stationery, Gujarats rank is 22nd; in terms of per capita spending on tuition and other fees Gujarat ranks 21st.99 The latest Household Consumer Expenditure Survey conducted by NSSO shows that a Gujarati residing in rural area spends just Rs 14 on education per month which is the lowest amount being spent among all the states, except the Naxalaffected tribal state of Chhattisgarh (Rs 11). (Indian Express 17 July 2013) This condition of Education in Gujarat is direct result of deliberate negligence of education by the state. Average per head expense on education is lower in Gujarat than that of the all India levels. In 2010-11, Gujarat spent 15.9 per cent of its budget in education, when Bihar, Chhattisgarh, Haryana, Kerala, MH, Orissa, Rajasthan, Uttar Pradesh and West Bengal spent between 16 and 20.8 per cent. The national average was 16.6 per cent. ( Indian Express 5 Sept 2013) Indian government is spending 1037 per head in rural government schools while Gujarat government spending only 984. Similarly Indian government is spending 3473 per head in urban government schools while Gujarat Government is spending only 2815 rupee. Similar is the case with Local Body schools and private aided schools. 100 Primary school teachers in villages are paid `3,500 a month. (20 July 2013 Asian Age) Gujarats population is 4.99% of indias total population but when it comes to number of educational buildings Gujarat have only 4.42% of total educational buildings in india. But when we compare number of buildings of shop and offices Gujarat has 7.06% of total these kind of buildings in india; 9.47% of total factories, workshop; 6.04% place of worship.101 Gujarat has only 2.16% of all primary schools in India (2009-10); while there is no distance education institution in the state.102 In terms of availability of rural primary schools in less than 2 kms the position of Gujarat is very similar or better than states like MH and TN and India but in case of secondary schools within the distance of 2kms position of Gujarat is far behind all other states and even national level. Same is the case with comparative study of availability of schools for different social groups where gap between deprived and general is highest in Gujarat. 7000 school specially in rural tribal area shutdown in last 10years. (20 July 2013 Asian Age) During the year 2011-12, total number of primary school in the state increased to 40943 from 40723 in 2010-11. The number of secondary and higher secondary schools increased from 9844 in 2010-11 to 9878 in 2011-12, but the enrolment in these schools decreased from 31 lakh to less than 30 lakh. 103 The ratio between students and teachers in 2000-01 was 42 which reduced to 31 in 2011-12.104 Gross enrolment ratio in Gujarat decreased from 109.54 to 104.64.105 While Gujarat has experienced higher rates of decline in share of state expenditure on education than national averages, the proportion of people dependent on government aided and government and local bodies run institutions is higher or the same, much more so in rural areas, indicating that the far costlier private-sector-run institutions were unable to substitute the educational needs of people at large. Person belonging to poorest 20% household in urban Gujarat is significantly more dependent on public education than their urban all India counterparts. 106 Poverty: All claims of development became silent when one look at the level of poverty, hunger and malnourishment in Gujarat. In terms of reducing poverty TN and MH is much ahead of Gujarat.107 As per the Tendulkar report, the rank of Gujarat in poverty reduction is 11th among the major 20 states. This is so despite the fact that the income fixed for deciding
97 98

Atul Sood,2012, p 273, Table: 9.17 Atul Sood, 2012, p 269, table 9.2, 99 NSSO report 2009-10; published in 2012, p 42 100 Atul Sood, 2012, p 274, table 9.20 101 Socio-Economic Review, Gujarat State 2012-13, p 89; Socio-Economic Review, Gujarat State 2005-06, pp S-92-93 102 Socio-Economic Review, Gujarat State 2012-13, p 95 103 Socio-Economic Review, Gujarat State 2012-13, p N-X 104 Socio-Economic Review, Gujarat State 2012-13, p XIII and Socio-Economic Review, Gujarat State 2011-12 p XXIX 105 Socio-Economic Review, Gujarat State 2012-13, p 47 106 Atul Sood, 2012, p 273, 107 Atul Sood, 2012, p 249, table 7.2

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poverty line (2004-05) in Rural Gujarat is ironically similar to of Bihar (Rs360) and Rs 3 less than of national figure.108 Increase in Average monthly per capita expenditure in Gujarat was Rs-163 between 2004-05 and 2009-10. The increase was of Rs 135 at all India level, 185 in TN, 240 in MH. If a states income increased rapidly along with i ncreased poverty and hunger and disproportionate increase in consumption level of people then there must be huge inequality in distribution of the States wealth. This means that Inequality increased in Gujarat while it decreased in Haryana, MH, TN. If we look at the distribution of income, level of inequality in Gujarat is very high (33% in Gujarat and 36% in India). This difference between Gujarat and India was more wider in 1990s and thus better placed. 109 Instead of launching and implementing more and more welfare schemes for the weakest section of the society and most backward region, Government is silent on these figures of poverty, malnutrition, inequality, etc. Even some of the State Government newly launched welfare scheme were reductionist for the weakest section of society. For example, due to Jyotigram scheme landless labourers who cultivate land on lease, face shortage of irrigation water and electricity because they dont have allocation of electricity and water under the scheme. The prices of water pump rises 40-60%.110 In Gujarat, the number of households of the smallest farmer group has increased, but not the acreage they control, while the largest farmer groups have gained in acreage, indicating worsening inequalities. This is contrary to the trend at the all-India level. The average size of marginal holdings are becoming smaller in the state compared to the national average, suggesting more than average leasing out or selling land in the state by the smallest land owning classes. On the other hand, the largest size category (above 20 hectares) has gained in terms of area. The average size of holding for the largest land owning classes has increased over the years.111 Gujarat government is not doing anything to stop this coercive transfer of land from weakest section of society to the richest section. On the other hand MH has law which facilitate favour for transfer of land from landed elite to the tenants. The tenancy law in MH give tenants right to purchase the land after one year of the commencement of his tenancy on any land. 112 Despite rural areas being ignored, rural areas of the Gujarat have done relatively better than urban in terms of both poverty reduction and reduction in inequalities. 113 Tribals: One community which has been marginalized most in the Gujarat in the last decade were the tribals of state. It is not just coincidence that tribal dominated region of south and North Gujarat is one of the most backward region of the state in almost all walk of life. 94.88 per cent of tribal in Gujarat are distributed in the seven districts viz, Sin at, Valsad. Panchmahals, Bharuch, Vadodara,. Sabarkantha and Dangs. 94 per cent of tribal population in Gujarat live in villages. The eastern tribal belt spread over 14 districts accounting for states 16% population, are comparable with the most backward region of the country. (TwoCircles.net 21 January 2009) According to a World Bank report, between 1993-94 and 2004-05, the share of those Aadivasi who lived below the poverty line increased from 30.9 per cent to 33.1 per cent. According to UNDPs 2011 also the incidence of poverty among tribal population in the Gujarat has increased by 0.3 percentage points per year. (5 Sept 2013 Indian Exparess) The per capita expenditure increased with the rate of 2.5% in last 5 years but for ST it was 0.14%. In southern Eastern region the per capita expenditure by ST reduced from 830 to 821 rupee during 2004-05 and 2009-10 and in plain Northern region it reduced from 2110 to 1037 rupee during the same period. In Saurashtra it reduced from 1894 to 1017. Overall in Gujarat it increased from 853 to 859 (only 6 Rupee). In case of reduction in poverty the situation is same. In South Eastern region poverty remained where it was in 1993-94. In Plain Northern region it increased from 8.87% in 2004-04 to 24.89% in 2009-10. In Saurashtra it increased from 1.23% to 52%.114

108 109

Sachar Committee Report 2005-06, p 363 Atul Sood, 2012, p 250, Table 7.1 & 7.3 110 Sucharita Sen and Chinmoyee Mallik, Understanding Gujarats Agricultural Growth in a liberalizing Environments : Signs of a Redefined Margin? Edt. By Atul Sood, 2012, p125 111 Atul Sood, 2012, p 236, table 5.12 112 Sucharita Sen and Chinmoyee Mallik, Edt. By Atul Sood, 2012, p124 113 Atul Sood, 2012, p 249, Table 7.2 114 Sood, pp 250-52, table 7.4

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Landlessness in Tribal area increased from 23% in 2004-05 to 29% in 2009-10 while in all other region landlessness decreased especially in North Gujarat and Canal Districts. In 2004-05 there were 21.65% landless people coming from lowest consumption group which increased to 40.90% in 2009-10. While the landlessness among two highest consumption group decreased by around 14%.115 The share of STs in Industrial employment had risen in the earlier decade, but it declined rapidly in the last five years. The participation of ST in industrial workforce in 2009-10 decreased to the levels that are half of that of 2004-05 levels. They were observed by agriculture. Among ST Rate of Employment Growth in manufacturing for rural area was -10.67% and in construction -15.52% for ST during 2004-10 . The change was positive for ST only in agriculture which mean they are being forced to be more dependent on agriculture. Between 1993-94 and 2004-05 employment of ST in primary sector decreased and increased rapidly in secondary sector but later their employment in primary sector increased while decreased in secondary sector. STs employment as causal labour increased while self employment among them decreased. 116 Meanwhile OBCs, Muslims, other minorities experienced a shift towards traditional sectors when growth was located in modern capitalist structure. IMR for ST increased from 60 to 86 in Gujarat during 1998-99 and 2005-06 while at national level it came down from 84.2 to 62.1. Disparity Ratio for IMR and U5MR (ST) in Gujarat is highest of all states and national average but in 1999 Gujarat was much ahead of number of states and national average. Similarly in case of Under 5 Mortality Rate for ST in Gujarat increased from 94.6 to 115.8 while at national it reduced from 126.6 to 95 during the same period. Similarly in terms of Under nutrition of Children it increased from 48.9 to 60.9. 117 Gujarat is behind national average also in mortality rates of women and rural areas. For both age group (6-10 and 11-14) the caste gap in education is higher than national average. The access to the upper primary and secondary education is less than national average.118 The Narendra Modi government has been criticised for not allocating to Adivasis and Dalits funds in proportion to their population. While the former represent almost 18 per cent of the state population, they were allocated 11.01 per cent of the total outlay in 2007-08, 14.06 per cent in 2008-09, 13.14 per cent in 2010-11 and 16.48 per cent in 2011-12. Moreover, actual expenditures were even lower. The same was true of the Dalits, who represent 7.1 per cent of the state population and who were allotted 1.41 per cent of the total outlay in 2007-08, 3.93 per cent in 2008-09, 4.51 per cent in 2009-10, 3.65 per cent in 2010-11 and 3.20 per cent in 2011-12. (5 Sept 2013 Indian Exparess) CAG found that the Gujarat government is not utilizing the grant-in-aid of almost 140 lakh released by the centre for SC/ST farmers. ( Times of India 13 May 2013) Gujarat state claim that in tribal area, atleast 25 % of the tribal population can get adequate and safe drinking water at home through water supply department. By end of December, 2012, total 149228 hand pumps were installed in tribal districts. A total no. of 6602 Mini pipe water supply schemes were completed up to December, 2012. Under Swajaldhara/ Sector Reform (State) programme, during the year 2011-12, 1057 (out of which 156 in tribal areas) schemes against the target of 1500 schemes and during the year 2012-13, 605 schemes (out of which 78in tribal areas) against the target of 1200 schemes were completed upto December, 2012 by WASMO. But If all the villages are getting supply of water how can the states own document reveal that only less than half of scheduled project completed till now. Under Sardar Patel Aavas yojana out of total 24498 house only 2186 houses for SC and 5084 houses for ST were constructed during 2011-12. During 2012-13 out of 53615 house only 2684 for SC and 6058 for ST. 119 Women:
115 116

Atul Sood, 2012, p236, Table 5.12 & NSSO 66th round, 2009-10 Sood, 2012, p 266, Table: 8.16 & 8.17 117 Atul Sood, p 276, Table:10.5 118 Atul Sood, 2012, p 272, Table 9.13 119 Socio-Economic Review, Gujarat State 2012-13, pp 60-62

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Apart from tribals and Dalits, Gujarat government is also not giving any attention to issues related to women and gender discrimination. The gender ratio was 920 in 2001 but this has declined to 918 in 2011120 while the child sex ratio - sex ratio in the population aged 0-6 years recorded a marginal increase from 883 female children for every 1000 male children in 2001 to 886 in 2011. (20 July 2013 Asian Age) Between 2001 and 2011, the population sex ratio in the state recorded a marginal decrease where during the same period; the population sex ratio in India recorded an increase from 933 females per 1000 males in 2001 to 940 females per 1000 males in 2011.121 The gender gap of students above 6 year (20%) in education is highest in Gujarat. Same is the case in age group of 6-10 and in the age 11-14 year, it is more than two and half times the difference at the national level. 122 Gujarat has largest number of malnutrition women. 55% women are anemic. (Frontline 23 Feb to 08 March 2013 ) In Gujarat Maternal Mortality Ratio decreased by 48% during 1991-2001 while the rate of decrease was only 26% during 2001 to 2011. 123 In the recent Gujarat Human Development report, Gujarat was holding 19th position in terms of female literacy. Female literacy in the state has risen less than three per cent between 2001 and 2011 while male literacy has increased by over 7 per cent during the same period. (20 July 2013 Asian Age) In terms of gender discrimination for education Hindus in Gujarat is much ahead of Muslims. In terms of sex ratio also muslims of Gujarat is far ahead o Hindus of the state.124. Muslims: The conservatism of the current Gujarat government is visible most in case of their discriminatory policy against the Muslims of the State. Even if we forget Godhara pogrom, the continuous killing of Muslims in fake encounter in the name of fighting terrorism cannot be ignored. For the time being, even after we ignore these judicial killing, how can we ignore the fact that the conditions of Muslims in Gujarat either remain stagnant or deteriorated during the rule of Narendra Bhai Modi in almost all walks of life. It may be recalled how the BJP and Narendra Modi went around the town quoting another analytical report from Abu Saleh Shariff (Feb 2011) sometime back wherein he had shown that the Muslims of Gujarat were economically and educationally better off than the Muslims of West Bengal. In terms of per capita Net State Domestic Product at constant prices Gujarat occupied fourth position in 1996. When Shariff, analysed the high income level with human development indices, Gujarat was above only to Orissa, Bihar, Jharkhand, Chhattisgarh and MP in terms of hunger level. This new report of Shariff questioned the deteriorating condition of Muslims in some other walks of life in Gujarat during the same period of time. The same Modi and his supporters mocked down the report. It is not that the report only criticised the Gujarat state. The report also acknowledge the performance of Gujarat in terms of 98% Electrification with 80% villages with 18 hours electricity, 90 % rural road connectivity, 86% water supply, better phone connections, banks, post offices, bus connections etc. Agriculture Extension works were also praised. Even if we do a close study of Sachchar committee report about which the BJP and Modi still consistently referring for proof for better condition of Muslims in Gujarat in compare to other states in some walks of life, we will find that condition of Muslims in Gujarat did not improved in last 10 years. We should also remember the fact that the figure used by sachchar committee is of 2004-05. United Nations has observed that poverty head count ratio for Muslims is highest in the states of Assam, Uttar Pradesh, West Bengal and Gujarat. In case of Rural Muslims in Gujarat poverty is 31.4% which while the figure for West Bengal is marginally ahead of that with 34.4%. In the villages of Gujarat, the poverty of Muslims is largely due to the fact that they own little land 70 per cent of rural Muslims own less than 0.4 hectare, against 55.5 per cent among Hindus. There is no report which published combined report of poverty among rural and Urban Muslims of Gujarat. But if we do some
120 121

Socio-Economic Review, Gujarat State 2012-13, P 4 Socio-Economic Review, Gujarat State 2012-13, p N VII 122 Atul Sood, Delhi, 2012, p 269 Table 9.3 123 Socio-Economic Review, Gujarat State 2012-13, p 50 124 Sachar Committee Report 2005-06, pp 287-89

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calculation by separating Urban and Rural population in Gujarat and then calculating total poor of Muslims in Gujarat and then thus their percent then we might get a sense that poverty among Gujarati Muslims is not better than West Bengal or national average. There is another twist to the story, if you will include the recent NSSO report of 2011-12, poverty among Gujarati Muslims decreased by 26% in these two year and if we take that into account Gujarati Muslims are much ahead of WB's Muslims or of national average. 125 (Indian express 06 Nov 2013) When we compare the conditions of muslims or any other community in two or more states we should first look into the historicity of that community in particular state. If we can refer to Medieval History Gujarati Muslims till recent period were one of the most vibrant bussiness community of the world. Remember the Bohras or Menons? If we compare those with that of landless Muslims of medieval Bengal province (consist of modern West Bengal, Assam, Bangladesh) who were converted to Islam because of their poverty (Richard Eton). it is obvious that their contemporary conditions cannot be expected to be better than ST and ST Hindus because there is hardly any difference in terms of practice of casteism among Hindu and Muslim. The caste atrocities of upper caste Muslims against lower caste Muslim has always been equally brutal. Our concern here not to find what is condition of Muslims of Gujarat at current time but instead to find what really had happen to them in last 10 years. Thus we need a comparative study of muslims in Gujarat during the begging and end of the decade. Analysis of NSSO surveys for 1999-2000 and 2009-10 revealed that Muslims in Gujarat had experienced very little decline in absolute poverty, Tendulkar definition (1.8 percentage points, ppt), in a decade of Modis rule. Gujarati Muslim is marginally ahead of most of the Indian state and national average but in past (in pre-Narendra Modi Gujarat) they were much ahead of other communities. During the Modi's rule the condition of Gujarati Muslims deteriorated and if it will continue to do so in future, within decade the condition of Muslims in Gujarat will be worst from every other states. ( Time of India 16 May 2012) In terms of MPCE Muslimss position is worse than even SC and ST in Gujarat (also Bihar Bengal, Raj asthan, MP, WB). So is the situation in case of urban poverty among Muslims. Ironically poverty among other minorities (christens and Parasi) of Gujarat is 0%.126 The Sachchar Committe report states that Gujarat is one among the states where the work participation rate/ratio of Muslims is lowest. In most of the state Muslimss participation in Manufacturing, trade and self employment is higher than of other religious groups but it is not the case with Gujarat.127 Self employment among Muslims in 1999-00 was much higher than among Hindus but by the end of decade the situation became totally opposite. 128 In Rural Gujarat the ratio of self employment among Muslims during 1999-00 was much higher than Hindu but by 2009-10 the case is totally opposite. Same is the case with rural labour where the ratio of Muslims in rural labour was less than the ratio of Hindu in 1999-00. This simply means that muslims of Gujarat are being forced towards the ignored and less profitable rural economy. The ratio of self employment in Gujarat is lesser than national average for both Hindu and Muslims but at least for the Muslims same was not the case in 1999-00.129 In 2004-05 around 41% Muslims in Gujarat were involved in service sector which came down to 31.7% in 2009-10. In 200405, 59% Muslims were self-employed which came down to 53% while in case of salaried services the proportion of Muslims come down from 17.5% to 14% during the same period. It is also to be noted that Muslim share in causal labour increased from 23% to 32% during the same period. 130 This means Muslims are repeatedly being marginalized in Gujarat in terms of better employment choices. They are being offered third grade unsecured and low wage employment. The total gap between Muslims and non-Muslims in terms of persons currently attending schools in the age group of 6-14 year is far more than national average. In 2001 when literacy rate (age above 7Year) in Gujarat was 69.1% the literacy rate of Muslims in Gujarat was at 73.5% but in 2007-08 when literacy rate of Gujarat went to 74.9% the literacy rate of Muslims in Gujarat remain at 74.3%.131 Gujarats CM blame fertility trends among Muslims for their backwardness but if that is so how Gujarati Muslims were doing well before the coming of Modi into power? The fertility rate among Muslims is highest in Rajasthan, UP and Bihar. The differences between fertility rate of Muslims and Hindu in Kerala is a much higher than in Gujarat but their situation is

125

Press Note on Poverty Estimates, 2009-10, Government of India, Planning Commission, March 2012, p 3, (http://planningcommission.nic.in/news/press_pov1903.pdf) 126 Sachar Committee Report 2005-06, pp 155 & 158-9 127 Sachar Committee Report 2005-06, p 102, App 5.5 & pp 105-6 128 Sachar Committee Report 2005-06, p 343 129 55th Round of NSSO, p 43 & 66th round of NSSO, p 59 130 Atul Sood, 2012, p 268, Table 8.19 131 Atul Sood, 2012, p 270, Table 9.9

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better in other things. The popularity of contraceptives among Muslims is only 1 % below than of Hindus.132 Muslims Participation in Sterilisation and IUD is slightly more than their ratio to population. 133 But this does not mean Muslims participation in other schemes and program of Gujarat government are also equally well. Their contribution in forming Thrift and Credit Societies; micro enterprises is more than double then their ratio to population but their participation in training given (5.5%) for unemployed is less than their ratio to muslim population. 4.5% of benefits of house sites to weaker section given to Muslim. They got 13.9% of benefits in national family benefit scheme. 134 Muslim has 12.4% of total bank accounts in Gujarat but the loan amount disbursed to them is only 2.6%. 135 Individual deposit per account in scheduled commercial banks by Muslims is almost 20% higher than of Hindus. Despite that disbursement of loan to Muslims is less than loan dispersed to Hindu. Under SIDBI scheme the sanction of amount to Muslims is only 0.44 crore out of total sanctioned amount of 3133.77 crore during 2000-01 and 2005-06. Similarly the Refinance by NABARD to Muslims in Gujarat is only 1.7% of the total amount during 2004-05 and 2005-06136. Muslims constitute about 9.7 % of the poor population in Gujarat. The share of Muslims in most schemes (for poors) is below this figure. Their share is satisfactory only in SJSRY and NSAP schemes. 137 In Krishi Bima Yojana Muslims got only 3.5% benefits; 1.4% of total power tiller; and 4.1% of total allocated tractor; while no loan from co-operative department or from Rural Development Department has been given to muslims.138. In spite of the poor educational attainment of Muslims, the Narendra Modi government abstained from distributing scholarships that the Centre had designed for them in the wake of the Sachar Committee report. The Centres contribution was supposed to amount to approximately Rs 3.75 crore and that of the state to about Rs 1.25 crore. The matter went to the Gujarat High Court, where a division bench of three judges ruled in favour of the scheme. Narendra Modi government appealed to the Supreme Court, which upheld the final decision of the Gujarat High Court in May 2013, five years after the scheme had been initiated. (6 Nov 2013 Indian Express) (TwoCircles.net 30 April 2012) At least in Gujarat, Modi cannot blame the Madarsa education for the bad performance of Muslims in field of education because the popularity of Madrasa education is least popular among Muslims of Gujarat. 139 Modi projects himself as the champion of the Causes of Hindus and thus the relative marginalisation of Muslims is part of their policies. But when one look at the progress of Hindu in relation to Christen and Parasis, it appears that Modis present himself against Muslims just to get vote from Hindu while most the favour from state were taken away by the Christen and Parsis. Its not that Modi is drive by the religious identity of christen or Parsis, instead it is the financial power of Parsis that attract Modi, after all Parsis are the business community of Gujarat. The highest gainer in terms of proportion of self employment during Modis rule are non-hindu and non-Muslims while their contribution in rural labour decreased with similar pace as self employment increased.140 The highest proportion of population possessing land above 4 hectare is neither among Hindu or Muslims but among non-Hindu and Non-Muslims. The proportion of non-Muslim and non-Hindu landholding above 4 hectare is almost double of both Hindu and Muslims.141 The Urban MPCE to SRCs in 2004-05 in Gujarat for communities other than Hindu and Muslims (Parasi) is almost 60% higher than average of Gujarat.142The self employment among the Hindu decreased marginally but wage and salaried employment increased rapidly to replace rapid decrease in causal employment. In case of Muslims, same is the case as the case of Hindu. Here again the unbelievable shift in employment is in case of non-hindu and non-Muslims.143 Environment: Whatever development that the state of Gujarat did was at the cost of not only weaker section of society but also at the cost of environment and wild life. The danger for the Asiatic lion of Gir increased so much so that it became necessary for authority to take some special and quick decision to save them. The environment ministry has accepted the Gujarat government's proposal of state government to set up a gene bank for lions in a bid to protect them from the danger of inbreeding. The Planning Commission has approved Rs 262.36 crore to expand the home of the Asiatic lion in Gir, which is

132 133

Sachar Committee Report 2005-06, pp 284-85 Sachar Committee Report 2005-06, pp 374 134 Sachar Committee Report 2005-06, pp 373-5 135 Sachar Committee Report 2005-06, p127 & (Ministry of Minority Affairs, MMA, GOI, 2011-12) 136 Sachar Committee Report 2005-06, pp 351-53 137 Sachar committee Report, 2005-06p 178 138 Sachar Committee Report 2005-06, pp 373-5 139 Sachar Committee Report 2005-06, p 293 140 55th Round of NSSO, p 43 & 66th round of NSSO, p 62 141 66th round of NSSO, pp 76-77 & 80 142 Sachar Committee Report 2005-06, p 364 143 55th Round of NSSO, p 44 & 66th round of NSSO, pp 64-68

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its only habitat in the world.144 Despite all these measures and funding from central government Gujarat could not satisfied the national forest authority about the safety of Gir lions in the state and thus on the intervention of SC Gujarat government was ordered to shift lions to MP. (17 August 2013 TOI) Govt of Gujarat signed MoU for one of the Asias largest mango production region in Gujarat.145 Even though industries in Coastal Regulation Zone are not allowed but Gujarat government is consistently allocating land for industrial set up. Gujarat govt named deep water ports as Green Field which can be considered as a satirist comment on nature.146 Now lets move to the issue of Governance and political reforms. This can be comprised of issue of RTI, Lokayukta, corruption, crime, transparency, internal democracy in the running of government, participation of weaker section of society in the running of state. Lets discuss the all one by one. In terms of allocating per capita money for State Information Commission Gujarat stands 11 th among 13 major states of India. Even Bihar is spending more than Gujarat. In terms of disposal of application Gujarat stands 11 th among 13 major Indian states. in 2011-12 the Gujarat information commissioner received 5224 complaints and appeals of which 2699 were disposed off. Of the 5224 application 70% were appeals. The report tabled in the state assembly revealed of the 3803 appeals filed 1887 were disposed off. Similarly of the 1421 complaints 812 were disposed off. Last year a farmer and RTI activist from Kutch setting himself on fire at a revenue office after his attempts to get information were thwarted. The report said that of all the district collector in Gujarat, only information was available in the case of Surendranagar collectorate. (TOI 15 April 2013) Commonwealth Human Right Initiative in its new report reported that Gujarat is one of the state which has not upload their annual report on their websites. Information of public authorities like other district collectorates, superintendent of stamps under the jurisdiction of revenue department and its district and taluka level officers, office of relief commissioner, office of the commissioner and secretary(land reform), Gujarat Revenue Commission, Gujarat State land use Board was not uploaded on the website. Also the information of home department and offices of 10 district superintendents of police and offices of the police commissioners and their subordinate officers was not made available. This does not end here. The information of Municipal Corporations of Ahmedabad, Rajkot, Vadodara, Junagadh and Gandhinagar, various schools, colleges and institutes were also not shared. The report further states that majority of the applications were about the functioning of the local self government, including corporations, villages, talukas and district Panchayats. In terms of disposal of application Gujarat govt rank 19th. In last 8 years 27 RTI whistle blowers were killed, out of which 4 from Gujarat, similarly out of 155 attack on RTI activist 24 were from Gujarat. RTI activist Trupti Shah said that the Narendra Modi govt has still not responded to her application seeking details of expenses on Mr Modis travels to attend several conferenc es in 2007. He attended women empowerment Sammelans for which Narendra Modi travelled for 27 places in Helicopter). Similarly Ramesh Joshi, a native of Kutch asked for information of expanses on Modis visit to different countries against which Commission replied that the asked information is vast and suggested applicant that he should contact different department separately. 147 Gujarat lacks vibrant civil society. Kerala is more developed because of their strong anti-caste movement; their two party systems, they never given blind support to single party and that is why Bengal remain behind of Kerala. The Deputy Speakers post is left vacant by the Gujarat Government for a decade. (As per article 17 8 of Indian constitution, it is compulsory). Assembly runs on an average for 30-32 days a year. Gujarats share in total cognizable crime in India is 5.30% while her population is 4.99% of the Indias total population. 148 21 IAS officers has been suspended. Ban on Liquor: Narendra Modi has banned liquor in Gujarat, but did he succeeded in reducing the consumption of intoxicant in Gujarat? The liquor market changed its form and now people are buying liquor essence to prepare their own liquor. The entire liquor essence market in Gujarat is approximately worth Rs 50 crore. (Indian Express 05 January 2009) More than 130 people died after consuming bootleg liquor in Gujarat last week. During the Great Depression, the Noble Experiment prohibition policy in the United States was repealed just 14 years after the sale of alcohol was banned. In the 1990s, Andhra Pradesh took up and abandoned the prohibition policy in less than two years. In Gujarat, the more resourceful get a medical certificate from a designated civil surgeon, who prescribes a dose of liquor necessary for curing an

144 145

Socio-Economic Review, Gujarat State 2011-12, p XI (http://delhimumbaiindustrialcorridor.com/dmic-gujarat.php) 146 Pankaj Vashisht and Gaurav Arya, Public-private Partnership: Insights from Infrastructure Development, edt. By Atul Sood, 2012, p84 147 (http://www.ndtv.com/article/india/gujarat-government-has-not-given-information-on-narendra-modi-s-travel-rti-activist-274830 ) 148 Socio-Economic Review, Gujarat State 2012-13, p 97

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ailment.149 Even as religious heads and the Karnataka State Temperance Board are working to rid the state of alcohol, chief minister DV Sadananda Gowda said here on Wednesday the government cannot implement a total ban on sale of alcohol as it would only boost the production and sale of illicit liquor. (11 January 2012 The TOI). Apart from Gujarat Liquor is prohibited in Mizoram, Manipur, Nagaland etc. In past also states like Madras Province, Bombay Province, Madras State, MH, Andhra Pradesh, Assam MP, Orissa, Karnataka, and Kerala had prohibited the consumption of liquor. Even Gujarat had already prohibited the consumption of liquor once during 1958 to 1969. In 1954, liquor was prohibited in one fourth of India. For me banning the consumption of alcohol has always been part of politics of state to reduce the frustration and unsatisfaction of common working poor from their reducing income and consumption level in the age of increasing differences between poor and rich or in an age of economic crisis. States do it for diverting the masses attention from spending on these costly and unnecessary products. Same was the case during 19 th century western world when Tea replaced Bear as the basic drink of common people (E P Thompson, Making of English Working Class) or period of great depression in America, or drought, famine and war in 1950s -60s in india. These kinds of policies also meant to divert the attention of masses from their basic issue such as food, shelter, education, health etc. and Modis initiativ e is somehow moving around the issue of both increasing deprivation and reducing purchasing power of the working poor of the state as well as the technique of diverting the attention of masses. He is doing this in the name of saving culture, but instead he is selling the culture for political mileage. Modis failed attempt of banning liquor in Gujarat is part of the political technique of using culture, religion and purity. Modi is using the politics of hatred and religion only to get political mileage and this is not new in politics. He is doing same thing as Jinna did with Hindu-Muslims divide in Pakistan or Sinhalis-Tamil in Srilanka or Buddhist-non Buddhist in Myanmaar. He know that he cannot divert the attention of masses by raising only the questions of development and governance because he know that there are number of other political leaders who has much more credibility in area of economic development and governance. If we rephrases electoral history of tribal region of Gujarat communal violence also seen in so called tribal areas of Gujarat which followed the victory of BJP candidates who were not expected to win before the riots. In tribal belt of Gujarat large number of bania and tribal elites are leaving their land for greater opportunities in urban Gujarat. The professions of these bania are being filled by muslim shopkeepers. Tribal people attacked these Muslims and because these people are in relation of exploitation which were earlier held by upper caste bania. These kind of electoral politics was not new in india. Hindutvas assertion in tribal parts of Bihar (now Bihar and Jharkhand) Orissa and Chhatisgarh has started sequence of communal riots in these regions followed by increasing electoral strength of BJP in these region. BJP could not manage to strengthen himself in these region with same intensity as they did in Gujarat is probably because the strong presence of Naxal movement in tribal parts of Jharkhand, Orissa and Chhatisgarh. The incidence of Godhara or Mujaffarpur or Nawada or any other clashes in the name of religion has same electoral objectives. When they choose Saradar Patel as their icon, they also try to impose their communal ideology on Patel. They selectively choose Patels activities which can be projected as champion for the cause of Hindutva while eliminate others. They praise the work of Patel against state of Hydrabad, Kashmir or Junagarh not only because rulers of those states were creating problem for India but also because those rulers were Muslims. There were other Indian states who were accessed to India under Patel or later by others such as Goa, Maysoor, North-Eastern States etc but since these activities of Patel dont fit into electoral policy of Safroon terrors they simply ignore them. RSS or Hindu Mahasabha happily endorses the fact that Patel was member of these organisation but they ignore the fact that it was the same Patel who criticised and banned the RSS after the death of Gandhi.150 They criticises the policy of Gandhi from every root but they ignore the fact how closely Patel
149 150

http://blogs.reuters.com/india/2009/07/12/prohibition-policy-in-gujarat-a-tragic-farce/. (Sardar Patels correspondence, Vol. VI , p. 323, Navjivan-1973) (R.S.S. Kaal, Aaj, Udyaa, p. 71, RSS-1983)( The Penguin Book of Modern Speeches, p. 664, Penguin Books-2007).

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followed the instructions and teaching of Gandhi and his role in execution of Nathuram. They went on even to the extent of making Nathuram as their role model but when Nathuram was facing trials for the murder of Gandhi RSS never legitimised the act of Nathuram to kill Gandhi. They also says that it was same Patel who lifted the ban from RSS but forget the fact that in India judiciary is highest power in India and there were no evidence to prove any link between RSS and killing of Gandhi by Nathuram. He lifted the ban from RSS only on the precondition that RSS will not involve in political activities. When they accept Patel as their role model and criticises the provision of reservation for the minorities at the same time, they forgot the fact that it was the same patel who headed the panel on minorities in the Constituent Assembly. He pioneered Clause 18 (now Arts. 29 and 30 of the Constitution) on safeguarding the cultural and educational rights for the minorities and personally introduced it on 1 May 1947 in the Constituent Assembly. Narendra Modi claim for use of swadeshi products but he himself hired American advertising agency for this election. The two companies, Frank Simoes-Tag and Utopia, have prepared the campaign advertisements for BJP which will be used on television, radio FM channels and the print media from March 16 onwards . Earlier (August 2007) they hired APCO from America. It is the same lobbying firm (Apco Worldwide) which has campaigned for former Nigerian dictator Sani Abacha and President of Kazakhstan Nursultan Abishuly Nazarbayev. It was also hired by former communist youth leader turned Russian billionaire with mafia links, Mikhail Khodorkovsky. Same firm was hired for Viberant Gujarat. Gujarat Govt will pay Apco 25000 USD per month for the Modis image building. On paper, Apco works for the Industrial Extension Bureau (iNDEXTb), the Gujarat Govts noda agency for investment and Vibrant Gujarat campaign was part of this Bureau. Neera radia helped Apco to bag Vibrant Gujarat project. ( TOI 17 Nov 2007) (8 Dec 2012, Economic Times) Conclusion: At the end of the day, the most important question which compels us to think is why state government is following a policy which is destructive for its own people? Who are the people benefitting from these policies of government and why government is inclined towards them? and most important question is why people of Gujarat has continuously given mandate to BJPs led government, even though they followed an anti-poor policies? The answers of all the above questions lies in the corruption nexus of politics and corporate and their interdependence. In contemporary system no one can think of successfully contesting an election or establishing a political party without external financial help. Neither any common man in this system of crony capitalism can think of to became entrepreneur without having external political support. This mutual needs make both politicians and capitalist close to each other. In a democracy it is assumed that the most pious relationship should be between politicians and the voter of the country where politicians have to depend on voter to elect them to use the states machinery and common people have to depend on the politicians for protection against the powerful individual or group who might curtail their rights which has been given to everyone as a citizen of the state or as a human being. But in contemporary system the situation is entirely opposite where the most pious relationship has been established between politician and powerful section of the society. Mr. Modi is considered as the symbol of most pious relationship between entrepreneurs and the politicians. To maintain this pious relation Gujarat government has been compromising with the interest and welfare the weakest section of society at large. The government and corporate world is targeting the weakest section of the society because they are least politically aware and they can be easily politically manipulated in the name or religion, caste, creed etc. The Modis relation with capitalist is most pious also because the political agenda and method of political campaign that he adopted right from the beginning of his life. Right from the beginning the politics of Hindutva or BJP or Mr. Modi has always been based on the use of inter-religious sentiments for the political mobilisation. Since the religion is matter of faith, passion, devotion and sacrifice, a successful popular politics based on religion have to create faith, hype, devotion, and fictional narratives etc. And creating and popularising faith, devotion, hype for anything or any fictional narrating is almost entirely depended on

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advertising skill. It has been this advertising skill of Mr. Modi which has given him this position in the family of RSS and BJP. He was one of the most radically establishing products of Babari demolition movement, Rath Yatra Movement in the early 1990s for the RSS and BJP. His came into prominent for successfully organising the Rath Yatra for Murli Manohar Joshi in 1992. It was this adverting skill of Modi that put him on position of campaign head for the BJP in 1995-96 Lok Sabha election. Till the resignation of Keshubhai Patel (CM of Gujarat) he remain away from electoral political and played different key role for making BJPs elector base wider. Whatever has been done by Mr. Modi and his allies or BJP in recent months in the name of preparation for the next Lok Sabha election give us the glimpse of those Rath Yatras, Temple-Mosques, riots etc of early 1990s and that is why we have been witnessed increasing communal riots such as Muzaffarnagar, Nawada etc. We should not surprise if terrorist activities increases in the recent future because the terrorist outfits from foreign countries are trying to get in touch with the victims of these riots, as happened in post-Babari demolition bomb blast in Mumbai. If we could not provide the enough resources and shelter for the riot victims, we should not blame those victims or Muslims at large for any unfortunate incidences in future. The bomb blast in Patnas Gandhi Maidan give us the sense of anxieties that common Muslim of this country is feeling and reacting. It is not that politics with the religious symbol had never been practices in extreme past of this country. Long before the birth of BJP or RSS, or Hindu Mahasabha, almost all the ruler were using religious symbols for hegemonizing the people of their empire because religion and religious symbols has always been considered as the cheapest means of mass mobilization. For the advertisement of religion and religious symbols we are already in a situation where we dont need large scale institutional arrangement because at every corner of our locality we could easily find some or other kind of religious institution such as temple, satsang sabha etc in working conditions. Whoever wants to do politics of religion and religious symbols, they are require only to find ways in which he or she or they can use these already existing traditional institution. During our independence our political leaders used these religious symbols and institution for the liberating this country. For example symbol of Jihad or Dharmyuddh during 1857, Ganesh and Shivaji festival, Gandhis concept of call for Ram Rajya etc. The only difference between others model Modis model of use of religion in politics is the fact that Gandhi or Patel, or Tilak etc never used religion or religious symbols as focal point of their political but Hindutva forces doing that. And thus use of faith, passion, compassion, hype, fictional narratives, illusions etc for mass mobilization are essential for the Hindutva forces to survive politically and electorally. However we should believe that electoral politics based on above mentioned tools of mobilization is limited to politics based on religion and religious symbol. Today Mr. Kejriwal has created a popular illusion and faith about Lokpal Bill in order to create a hype in aggression against corrupt politicians and bureaucrats of this country. Their supporter are creating an illusion that once Lokpal bill come into practice all the corruption will be eliminated and once the corruption will be eliminated there will be no problem in this country. Thus in terms of using techniques, tools, and tactics of mobilization there is no difference between Hindutva forces and Kejriwal. The only difference is in issue. One is using corruptin while other has been using religion as issue for their electoral politics. Two consecutive defeats in Lok Sabha election and increasing loss of electoral base of BJP in recent decade forced the party to make their position on religious issues soft. The Advanis praise for Jinnah, Yaswant Singhs confession about Atal Bihari Vajpai position on Modi and Godhara, breaking of alliance with BJP by Nitish and Patnayak, etc are sign of increasing denial for the extreme communal politics in recent years. The shift in political issue has always part of Hindutva politics because even they understand that any electoral politics based on faith, devotion, passion, illusions, fictional narratives etc cannot sustain for long period of time and thus it needs to be changed. They sarted the politics with the issue of cow protection, bringing the Gate of Somanath Temple, then Ram Temple and Babari Masjid, and finally Kargil war gave them clear majority in the Lok Sabha. Along with these high level issues there were other issues which were running unofficially at grass root level such as love jihad, increasing population of muslims, Ram Setu etc. They also understand that any shift in issue must be gradual and that is why some of their old issue such as cow protection are still alive at subsidiary level. Hindutva forces has been given a dynamic leader with every major shift in their issue of

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electoral politics. Since last more than twenty years Hindutva forces have not shifted their major issue from Ram Temple which has given them Aadvani as leader. Now Hindutva forces has understood that they cannot fool people of this country in the name of Ram Temple any longer. There has been a need of shift in both issue and leadership. Modi has given the Hindutva forces both. This time the shift is from religious nationalism to economic nationalism. It is not that BJP did not have anyone else with far better record in leading the states e conomy. Shivraj Singh Chauhan in MP is being considered as one of the Development Man along with Nitish Kumar and Mr. Modi, Parrikar in Goa has far better record of governance and simplicity of life and leadership quality. But what Nitish Kumar or Parikkar or Shivraj Singh Chauhan or even Aadvani or any other leaders from BJP lacks is this ability of projecting oneself with rare combination economic development along with issue related to the ideology of Hindutva. Mr. Modi has blurred the difference between political nationalism, economic nationalism and communalism most skilfully. I hardly can think of any individual who used the religion and religious symbols along with economic and nationalist symbol together with this much of skill, except Adolf Hitler. Though in case of Hitler, in place of Modis hindutva issue, Hitler used the issue of racial discrimination. Since the BJP has now changed its primary issue without changing their technique, tactics and tools for electoral mass mobilization, they have to create myths, illusions, fictional narratives etc around the model of Gujarat development, and give them unconditional hype and publicity in order to make their supporter in particular and mass in general understood those illusions as matter of beyond question, unfaithful. But creating an illusion, narratives etc around economic model of development is tough task and tougher is the task of making these narratives matter of unquestionable faith. This requires huge financial and skilful human resources, much more than the resources they needed for doing politics on religious nationalism. They have to now build additional institutional arrangement with human resources who are partly skilful in issues related to economics. It is here that importance of our report became relevant. Hindutva forces has already got success in creating an illusion of Modi as development men and increasingly trying to make that illusion a matter of faith at grass root level. Instead of opposing both media and corporate world has helped them in their mission of creating those illusions and converting that into faith. It is matter of need for us to expose the illusionary part of their Gujarats model of development. Since this report is meant for common people of this country, it has avoided the use of academic language in order to make it as much as understandable for common people. Though we dont have support of as much resources as Hindutva forces has but we should also remember the fact that breaking a illusion needs much lesser resources than creating an illusion. But that is possible only if that illusion would not have converted into matter of faith. The secular forces in this country could not eliminate the communal forces because illusions related to Hindutva, Hindu Rashtra had became matter of faith at the very beginning. One last point that i can make in the support of our argument about illusion of success of Gujarats model of development is that illusion and faith cannot work if the difference between propagator of those illusion and their audience could be blurred. This is probably why, despite huge success in 2012 Gujarat state assembly election BJPs performance in Panchayat election in same year are relatively worst. It was so because the differences between voter and leader at Panchayat level are so close that illusion or fictional narrative cannot work while it can work easily at higher level of politics. (Indian Express 18 Feb 2013)