Skip to main content

Gujarat urban upsurge leads to absolute rise in poverty despite high growth rate

By Jag Jivan 
Not that economists have not noticed urban poverty in Gujarat; but they have focused on urban Gujarat in passing. For instance, there is a calculation that the percentage of urban poverty in Gujarat during the second half of the decade ending 2010 has gone down by 2.2 per cent, from 20.1 per cent to 17.9 per cent. Which means, the annual poverty reduction in the state has been just about 0.44 per cent. Notably, this is lower than a dozen out of 20 major states, including Madhya Pradesh, which saw a whopping 12.2 per cent reduction in urban poverty, followed by Orissa (11.7), Rajasthan (9.8), Maharashtra (7.3), Tamil Nadu (6.9), Karnataka (6.3), Kerala (6.3), Andhra Pradesh (5.7), Chhattisgarh (4.6), Bihar (4.3), Uttar Pradesh (2.4) and West Bengal (2.4). The all-India average percentage in poverty reduction is 4.6. Obviously, huge investments and a high growth rate have not helped Gujarat’s downtrodden sections, in any way.
In fact, one economist has calculated, in absolute terms, the number or urban poor in Gujarat has gone up 4.3 million in 2004-05 and 4.5 million in 2009-10. This should be worrisome for Gujarat, which is already the fastest urbanizing state of India. According to the latest Census of India data, Gujarat experienced a whopping 35.83 per cent rate of growth in urban population between 2001 and 2011. Currently, 42.6 per cent of the state’s population lives in urban areas, next to Tamil Nadu and Maharashtra. Yet, there has been little or no analysis on the impact of the drastic change in the state’s urban demography on overall social, economic and cultural scenario. Not that the Gujarat government is not aware of it. A government document, presented at the Chintan Shibir, a bureaucratic conclave, in early 2011, “records” the following as a fact: “While nutrition indicators appear worse in rural areas (48 per cent) compared to urban areas (39 per cent), the urban poor are at an equivalent disadvantage compared to rural populace and much worse than their affluent urban neighbours… Among urban poor, under-five under-nutrition is 56 per cent against 36 per cent among urban non-poor.”
Even then, National Sample Survey (NSS) data, released in September-October 2012, provide some indication of the status of different social groups in urban areas in Gujarat – scheduled tribes (STs), scheduled castes (SCs), other backward classes (OBCs) and others (mainly upper castes) – as to where things stand for each of them. NSS data (which are the most authoritative figures in the absence of Census of India figures) suggest that 75.7 per cent of urban ST households, 79.6 per cent SC households, 51.5 OBC households and 51.7 “other” households depend either on wages/ salaries or casual labour for their survival. As many as 19.7 per cent ST households, 18.2 per cent SC households, 44 per cent OBC households and 41.3 per cent “other” households are found to be“self-employed”. From available indications, this is not very different than most other states. However, when it comes to purchasing power in the urban areas, calculated as monthly per capita expenditure (MPCE), one gets a totally different story.
The picture that one gets is quite interesting picture, suggesting, that it is the SC households whose MPCE in urban Gujarat is worse than any other category. The SC households’ MPCE is Rs 1,292 as against the ST households’ Rs 1,624, OBCs households’ Rs 1,457, and “other’” households’ Rs 2,343. The average MPCE in urban Gujarat for all social groups is found to be Rs 1,909, which is lower than the national average of Rs 1,984. Gujarat’s average MPCE is worse than most major states, including Andhra Pradesh (Rs 2,238), Haryana (Rs 2,321), Himachal Pradesh (Rs 2,654), Karnataka (Rs 2,053), Kerala (Rs 2,413), Punjab (Rs 2,109), Tamil Nadu (Rs 1,948), Maharashtra (Rs 2,437), and West Bengal (Rs 1,965). But when it comes to SC households, the situation vis-vis other states is even worse. SCs’ MPCE (at Rs 1,292) is worse than Andhra Pradesh (Rs 1,757), Chhattisgarh (1,376), Haryana (Rs 1,429), Himachal Pradesh (Rs 1,553), Jammu & Kashmir (Rs 1,781), Karnataka (Rs 1,637), Kerala (Rs 1,709), Maharashtra (Rs 1,709), Punajb (Rs 1,462), Rajasthan (Rs 1,229) , Uttarakhand (Rs 1,371), and West Bengal (Rs 1,296). The national average for SC households is Rs 1,444. What is equally interesting is that, for the other three category of social groups, too, Gujarat’s MPCE is worse than the national average. Urban Gujarat’s ST households’ MPCE is Rs 1,624, as against the national average of Rs 1,797; it is Rs 1,457 for OBC households, as against the national average of Rs 1,679. And for “others”, as against Gujarat’s Rs 2343, the national average is Rs 2467.
The MPCE of SC wage/salary earning households is found to be Rs 1,437, but of casual workers (who account for 27 per cent of the total SC households) it is extremely low, Rs 1,036. The MPCE of casual workers among ST households (forming 21 per cent of total ST households) is found to be Rs 1,132. The OBCs’ MPCE among the casual workers is worse than all, at Rs 1006. As for “others”, their MPCE is Rs 1,222. In fact, figures suggest that there is enough reason for Gujarat’s casual workers to have less purchasing power than most other states. Here, NSS figures provide a very clear picture. Out of a total of 20 major states, casual labour in Gujarat earns on an average Rs 106, which is worse than as many as 14 other state. It is Rs 106 per day for Gujarat’s urban casual labour, as against Andhra Pradesh’s Rs 138, Chhattisarh’s Rs 111, Haryana’s Rs 143, Himachal Pradesh’s Rs 152, J&K’s Rs 150, Karnataka’s Rs 109, Kerala’s Rs 218, Maharashtra’s Rs 110, Punjab’s Rs 139, Rajasthan’s Rs 142, Tamil Nadu’s Rs 138, Uttarakhand’s Rs 136 and Uttar Pradesh’s Rs 107. The all-India average is Rs 121.
These facts are important, particularly if seen in the context of the fact that well-known international agencies are already predicting that Gujarat will be the most urbanized state of India. An authoritative report prepared by McKinsey Global Institute (MGI) two years ago, for instance, predicted that by the year 2030, a whopping 66 per cent of Gujarat’s population will start living in urban areas as against 42 per cent reflected in the 2011 Census. While this will make Gujarat as the second most urbanized state, fast catching up with Tamil Nadu, the report suggests that this will happen because the rate of growth of urbanization in Gujarat in the next two decades will be higher than any other state.
Called “India’s Urban Awakening: Building Inclusive Cities, sustaining economic growth”, the MGI report says that the states that exhibit higher gross domestic product (GDP) rates also will experience higher urbanization rates in the next two decades. The top consultants say, there is enough reason to conjecture as to why the rate of urbanization will be so high, indeed higher than any other state. In the last two decades Gujarat’s GDP grew at the compound annual growth of 7.5-8 per cent, in 2010-2030, it predicts, it will increase to 8- 8.5 per cent, higher than any major state.
An analysis of how major cities of India will develop over the next two decades, the MGI report states, Ahmedabad, which will have a population of 8.4 million in 2030, will also be one of the richest Indian cities, having per capita GDP of 8,100 dollars, next only to Delhi (11,400 dollars), Bangalore (12,600 dollars) and – interestingly – Vadodara (8,500 dollars). Counted at 2008 prices, all other major cities, including Mumbai, Kolkata, Chennai, Hyderabad and Pune will have lower per capita GDP. AT the same time, the report believes that Gujarat’s cities would need massive investments, more than most other cities, to upgrade their infrastructure to meet city needs. At 2008 prices, by 2030, Ahmedabad would need 246 dollars per capita investment, Surat 235 dollars and Vadodara 263 dollars. This is against 124 dollars per capita needed for the country. “More than half of the capital expenditure is necessary to erase infrastructure backlog and the rest to fund cities’ future needs”, the report underlines.

Comments

TRENDING

Whither space for the marginalised in Kerala's privately-driven townships after landslides?

By Ipshita Basu, Sudheesh R.C.  In the early hours of July 30 2024, a landslide in the Wayanad district of Kerala state, India, killed 400 people. The Punjirimattom, Mundakkai, Vellarimala and Chooralmala villages in the Western Ghats mountain range turned into a dystopian rubble of uprooted trees and debris.

Iswar Chandra Vidyasagar’s views on religion as Tagore’s saw them

By Harasankar Adhikari   Religion has become a visible subject in India’s public discourse, particularly where it intersects with political debate. Recent events, including a mass Gita chanting programme in Kolkata and other incidents involving public expressions of faith, have drawn attention to how religion features in everyday life. These developments have raised questions about the relationship between modern technological progress and traditional religious practice.

Election bells ringing in Nepal: Can ousted premier Oli return to power?

By Nava Thakuria*  Nepal is preparing for a national election necessitated by the collapse of KP Sharma Oli’s government at the height of a Gen Z rebellion (youth uprising) in September 2025. The polls are scheduled for 5 March. The Himalayan nation last conducted a general election in 2022, with the next polls originally due in 2027.  However, following the dissolution of Nepal’s lower house of Parliament last year by President Ram Chandra Poudel, the electoral process began under the patronage of an interim government installed on 12 September under the leadership of retired Supreme Court judge Sushila Karki. The Hindu-majority nation of over 29 million people will witness more than 3,400 electoral candidates, including 390 women, representing 68 political parties as well as independents, vying for 165 seats in the 275-member House of Representatives.

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

Gig workers hold online strike on republic day; nationwide protests planned on February 3

By A Representative   Gig and platform service workers across the country observed a nationwide online strike on Republic Day, responding to a call given by the Gig & Platform Service Workers Union (GIPSWU) to protest what it described as exploitation, insecurity and denial of basic worker rights in the platform economy. The union said women gig workers led the January 26 action by switching off their work apps as a mark of protest.

With infant mortality rate of 5, better than US, guarantee to live is 'alive' in Kerala

By Nabil Abdul Majeed, Nitheesh Narayanan   In 1945, two years prior to India's independence, the current Chief Minister of Kerala, Pinarayi Vijayan, was born into a working-class family in northern Kerala. He was his mother’s fourteenth child; of the thirteen siblings born before him, only two survived. His mother was an agricultural labourer and his father a toddy tapper. They belonged to a downtrodden caste, deemed untouchable under the Indian caste system.

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra*  The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

Ganga-Jamuni Tehzeeb: Akbar to Shivaji -- the cross-cultural alliances that built India

​ By Ram Puniyani   ​What is Indian culture? Is it purely Hindu, or a blend of many influences? Today, Hindu right-wing advocates of Hindutva claim that Indian culture is synonymous with Hindu culture, which supposedly resisted "Muslim invaders" for centuries. This debate resurfaced recently in Kolkata at a seminar titled "The Need to Protect Hinduism from Hindutva."

Report finds 28 communal riots, 14 mob lynching incidents targeting Muslims

By Syed Ali Mujtaba*  A study released by the Mumbai-based Centre for Study of Society and Secularism (CSSS), supported by data from India Hate Lab, documents incidents of violence and targeting of Muslims across India in 2025. The report compiles press accounts and fact-finding material to highlight broad trends in communal conflict, mob attacks, and hate speech.