Skip to main content

Neoliberal growth in Gujarat has 'intensified social and economic inequalities'

By Rajiv Shah
A just-released report, “Reducing Inequality: Learning Lessons for the Post-1015 Agenda. India Case Study”, by Save the Children has regretted that “the rapid economic growth that Gujarat has experienced over the past decade has been of the nature of exclusionary growth where goals like social equality, sustainable livelihoods, access to education and health, justice and peace have been abandoned in the race for high-speed growth.”
The report, by the world’s leading independent organization that works to inspire breakthroughs in the way the world treats children to achieve immediate and lasting change in their lives, states that Gujarat's “expenditure in social sectors, both as a percentage of GSDP and as a percentage of total expenditure, has declined more than the average decline in other comparable States and stands below the national average pointing to a clear shift in the priorities.”
Infant mortality rate among states

The report observes, “There is a decline in the usage of government health services in both rural and urban areas of Gujarat and a very high reliance on the private sector. In urban areas, the decline has been quite significant for the lowest income group.”
It adds, “Data for some select states of IMR for 2010 (based on availability) reveal that across all states and across regions, the IMR for females are relatively higher. This is a clear reflection of the gender bias that exists in India even today. The Western states of Gujarat and Rajasthan and Northern state of Uttar Pradesh show higher differences than the other states.”
Hunger Index among states

The report has been prepared to study rising inequality, which it says has “emerged as one of the most important problems confronting societies across the world.” It underlines, “Within the Asian region, South Asia has experienced rapid increases in income/ consumption inequality during the recent period of its rapid growth. This is quite evident in case of India, the largest economy in the region with over a billion people. There is evidence to suggest that the poorer sections of India were actually further marginalised under the neoliberal economic regime introduced in India in the early 1990s.”
Calorie intake per capita among states
Singling out Gujarat in this context, the report states, “Poorer states like Bihar, Uttar Pradesh and Orissa witnessed only a marginal improvement in terms of per capita NSDP (Net State Domestic Product), whereas the richer states like Gujarat, Maharashtra, etc witnessed substantial rises.”
This has not helped reduce inequalities, it underlines: “States that witnessed greater rise in per capita NSDP during the period 1993- 94 to 2004-05 also witnessed higher rise in state-level Gini coefficients. This implies that the states that experienced more ‘growth’ actually had worsening inequalities.”
The report further says, “Within States, the rural-urban divide worsened. Urban consumption levels were double that of rural consumption levels. The social factor of caste plays a major role in determining household Monthly Per Capita Expenditure (MPCE) levels. The Social Category “Others” had higher MPCEs across both rural and urban sectors in India compared to the other categories, viz. the Scheduled Castes (SC), Scheduled Tribes (ST) and Other backward Classes (OBC).”
The report points towards how “the systematic withdrawal of the state from social welfare activities has undermined the previous progress towards universal access and has resulted in increased inequality and exclusion.” In this context, it believes, “Per capita NSDP does not capture the actual distribution amongst the population as it assumes equal shares for all.”
Life expectancy among states
The report underlines, “The easiest method of measuring actual distribution is by analysing differences in consumption expenditures, as given by the National Sample Survey Organization (NSSO) periodic sample survey reporting.” Even its “household consumption data tend to understate the extent of inequality by underestimating the tails of the distribution (excluding the very rich and the very poor) and because the poor are more likely to consume as much or even more than their income while the rich are more able to save.”
Coming to calorie intake as the criterion of health, the study says, “In the rural sector, Punjab has the highest per capita calorie intake of 2223 Cal while Jharkhand had the lowest of 1900 Cal. It is interesting to note that some of the poorer states like Orissa and Uttar Pradesh had  alorie intakes higher than the national average while comparatively richer states like Gujarat and Tamil Nadu had lower than the national average rate of calorie intake.”
Emphasising that “a significant dimension of health is life expectancy, which has been increasing over the years”, the study says, “It has increased more for females than males. According to 2002-06 estimates, life expectancy at birth for males was 62.6 years as compared to 64.2 years for females. Also the urban male (67.1 years) and urban female (70 years) have longer life spans as compared to their rural counterparts (61.2 and 62.7 years respectively).”
Maternal mortality rate among states
As for Gujarat, it reminds again that it “has one of the highest per capita incomes of all major states (per capita net state domestic product (NSDP) at constant (2004-05) prices of Rs 52,708 in 2010-11)”, but “has only been a moderate performer in this regard. Gujarat’s IMR in 2011 is close to that of much poorer and less developed Bihar despite the much higher per capita income in that state (per capita NSDP of Bihar in 2010-11 is Rs.13,632).”
It says, “Kerala has shown one of the lowest infant mortality rates historically. Its IMR has been many times less than the Indian average. Kerala’s performance is more creditable than any other states as it has managed to reduce the already low IMR even further over the period.”
It adds, “It is surprising to note that even urban IMR is high in the states of Delhi and Gujarat...The relatively richer states of Gujarat and Haryana have shown slower improvements in lowering IMR. incomes of all major states.”
Crude birth rate among states
As for the maternal mortality rate (MMR), the report says, “Gujarat again has proved to be a poor performer as the MMR has actually gone up in Gujarat over the period 1997-98 to 2007-09 recording a negative rate of decline.” It is in the company of “states of the north western region Uttar Pradesh, Rajasthan and Bihar, which still show quite high rates of maternal mortality.
As for education, “while states such as Tamil Nadu, Sikkim, Mizoram, Arunachal Pradesh, and Manipur spent 10.2 per cent, 9.8 per cent, 9.1 per cent, 7.1 per cent, and 6.4 per cent, respectively, of their total state domestic product (SDP) on education in 2007-08, there were several states (e.g. Maharashtra, Delhi, Gujarat, Haryana, Punjab, Andhra Pradesh, Goa) which spent less than 2 per cent of their SDP on education.”
Even on increase in pupil-teacher ratio (PTR), the report says, “In 2009-10, number of districts where PTR was above 30 has increased to 304 during 2009-10 compared to 284 in 2008-09. These districts are mainly concentrated in Bihar, Gujarat, Jharkhand, Madhya Pradesh, Orissa, Uttar Pradesh and West Bengal.”

Comments

TRENDING

US-China truce temporary, larger trade war between two economies to continue

By Prabir Purkayastha   The Trump-Xi meeting in Busan, South Korea on 30 October 2025 may have brought about a temporary relief in the US-China trade war. But unless we see the fine print of the agreement, it is difficult to assess whether this is a temporary truce or the beginning of a real rapprochement between the two nations. The jury is still out on that one and we will wait for a better understanding of what has really been achieved in Busan.

When growth shrinks people: Capitalism and the biological decline of the U.S. population

By Bhabani Shankar Nayak*  Critically acclaimed Hungarian-American economic historian and distinguished scholar of economic anthropometric history, Prof. John Komlos (Professor Emeritus, University of Munich), who pioneered the study of the history of human height and weight, has published an article titled “The Decline in the Physical Stature of the U.S. Population Parallels the Diminution in the Rate of Increase in Life Expectancy” on October 31, 2025, in the forthcoming issue of Social Science & Medicine (SSM) – Population Health, Volume 32, December 2025. The findings of the article present a damning critique of the barbaric nature of capitalism and its detrimental impact on human health, highlighting that the average height of Americans began to decline during the era of free-market capitalism. The study draws on an analysis of 17 surveys from the National Health and Nutrition Examination Survey (NHANES), conducted by the U.S. Centers for Disease Control and Prevention (...

Mergers and privatisation: The Finance Minister’s misguided banking agenda

By Thomas Franco   The Finance Minister has once again revived talk of merging two or three large public sector banks to make them globally competitive. Reports also suggest that the government is considering appointing Managing Directors in public sector banks from the private sector. Both moves would strike at the heart of India’s public banking system . Privatisation undermines the constitutional vision of social and economic justice, and such steps could lead to irreversible damage.

Shrinking settlements, fading schools: The Tibetan exile crisis in India

By Tseten Lhundup*  Since the 14th Dalai Lama fled to India in 1959, the Tibetan exile community in Dharamsala has established the Central Tibetan Administration (CTA) as the guardian of Tibetan culture and identity. Once admired for its democratic governance , educational system , and religious vitality , the exile community now faces an alarming demographic and institutional decline. 

Sardar Patel was on Nathuram Godse's hit list: Noted Marathi writer Sadanand More

Sadanand More (right) By  A  Representative In a surprise revelation, well-known Gujarati journalist Hari Desai has claimed that Nathuram Godse did not just kill Mahatma Gandhi, but also intended to kill Sardar Vallabhbhai Patel. Citing a voluminous book authored by Sadanand More, “Lokmanya to Mahatma”, Volume II, translated from Marathi into English last year, Desai says, nowadays, there is a lot of talk about conspiracy to kill Gandhi, Netaji Subhas Chandra Bose, and Shyama Prasad Mukherjee, but little is known about how the Sardar was also targeted.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

Behind Sarojini Nagar’s glamour: The Hidden lives of its daily wage workers

By Samra Iqbal*  In Delhi’s bustling Sarojini Nagar market, what you buy and how much you pay rarely affects the person selling it to you. “Maalik kabhi baitha hi nahi hai” (“the owner never sits”), said Bilal, a daily wage worker who has spent years behind one of the hundreds of stalls that line the market’s narrow lanes.