Gujarat Model of Development

By | August 25, 2014

 The recent landslide victory of the NDA government in the Indian general elections 2014, riding high on PM Narendra Modi’s Gujarat Model of Development has been widely talked of in the Indian media. Critics have been vociferously denouncing the efficacy of the Gujarat model of development and arguing that it would not be a success at the Pan India level. India has seen an indecisive and inefficient government in the form of UPA at the Centre for a decade. PM Narendra Modi’s Gujarat Model of Development has provided a fresh outlook to the people and revived sentiments of the investors towards the Indian economy.

Gujarat Model

Let us see what this Gujarat model is comprised of. First of all, the Gujarat government followed a 4 pronged strategy to make the government offices efficient. They are:

  1. Make employees work and the government would definitely deliver.
  2. Less government, more governance.
  3. Government will look after the poor and the private sector will take care of the middle and higher income families.
  4. Obdurate Baabu Don has no place in the government and governance.

The Gujarat model of development saw the government implementing these following steps for the holistic development of the state of Gujarat which paid heavy returns over the years. These steps are:

  1. The farmers or cultivators were linked directly to the market, the wholesaler, exporter and the industry. There was a comprehensive knowledge sharing, soil management and irrigation canal network.
  2. The Gujarat model of development worked on 100% enrollment of students, decreases in the school dropouts and the setting up of ITIs for skill deficits and development of human capital in the state.
  3. The Gujarat model of development involved a cluster development model for the industrial development wherein industries were set up in cluster areas such as Special Economic Zones (SEZs). The Jamnagar refinery of Reliance industries is one such example.
  4. The Gujarat state has been a revenue surplus state. It has been a revenue surplus state inspite of the absence of heavy tax collections on alcoholic products as Gujarat is a dry state. This can be attributed to the heavy presence of industry in the state along with pragmatic and highly effective tax collection system.
  5. Gujarat has been one of the calmest states in India with crime rates being at rock bottom. This has provided a good atmosphere for the corporate houses. This has been ensured by capacity build up by recruiting more police officials and providing them with state of the art training.
  6. The Gujarat model of development has involved quick and simple policy measures for the industry. Faster approval processes, quick land acquisitions (land banks), good infrastructure etc have given an impetus to growth.
  7. The Gujarat model of development has provided a helping hand to the poor farmers through massive programs of rural electrification. Also, the green energy solutions and renewable energy sources are being sought for. There are separate lines for houses and farms in the rural areas. Houses may not get a 24 hour supply of power, but a 24 hour supply of power to the farms is ensured.
  8. Gujarat has become an epitome of e-governance and internet connectivity in India. There has been a revolutionary coverage of IT in the state. The Gujarat State Wide Area Network (GSWAN) is the largest of its kind in the world. IT and internet stands as a firm pillar in the Gujarat model of development.
  9. There has been a substantial amount of autonomy provided to the state owned public sector units such as Gujarat State Petroleum and Gujarat State Fertilizers. They have performed very well in the past few years bringing in extra revenue for the state.
  10. The Gujarat model of development has provided impetus to Medium, Small, Micro (MSME) enterprises which have flourished in the recent years. This has been a big source of wealth generation as well as employment in the state.

Apart from all this, The Gujarat model of development has put significance on the role of private sector in infrastructural development of the state. Various large scale and heavy investment projects were under taken in the PPP mode. There was a large scale development of ports and roads in the state under this model. Hence Gujarat has over taken Punjab as the state with highest road densities in India.

A level of political assertiveness has also been shown by the government of Gujarat, thus maintaining the sanctity of the democratically elected institutions. These things summarize the highly rated Gujarat model of development.


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