Skip to main content

Refined analysis by top economist says Gujarat underperforms in social sectors

Prajul Bhandari
By Rajiv Shah
A new Planning Commission-sponsored study, “Refining State Level Comparisons in India”, by Pranjul Bhandari, economist at the Office of the Chief Economic Advisor in the Ministry of Finance, Government of India, and a chief brain behind the Economic Survey 2012-13, says that her “refined” analysis has found that Gujarat stands 16th in health index, 12th in education index and 11th in infrastructure index among 21 major Indian states. Bhandari has arrived at these figures on the basis of a new methodology she adopts by “refining” raw data in order to find out how well do states perform in the context of the resources at their disposal.
Bhandari believes that the method so far adopted only provides what “raw” results. They merely “conform with the already well-established findings of several other studies that states such as Kerala are amongst the best performing while the so-called BIMARU states (Bihar, MP, Rajasthan and UP) are laggards.” However, she thinks, “While this is true on an absolute level, it does not reveal the performance conditional on state level factors.”
Hence the need to “refine” the analysis by “controlling” the three indices for per capita consumption” in order to put states on “a level playing field and for gauging how well the states have used available resources.” She underlines, “Our ‘refined’ analysis throws up rankings which are quite different from the ‘raw’ analysis. For instance, we find clear differentiation between the BIMARU states – while Orissa, Bihar and Chhattisgarh are amongst the best performers, Uttarakhand, Rajasthan and Jharkhand are amongst the worst.”
The “refined” analysis suggests that “while the performance of Himachal Pradesh has been most impressive, Gujarat is amongst the worst on health, Maharashtra on infrastructure, and Haryana on both.” Pointing out that on all three sectors – health, education and infrastructure – are “complex”, she says, “Given the sheer size of resources needed for scale up, each of these three needs effort from both the public and private sectors. The public sector for instance not only needs to provide resources, but also create a policy environment conducive for scale-up.”
The methodology Bhandari adopts is as follows: She ranks “the states and gauge if performance across the three sectors are correlated or divergent”, and compares states “for both absolute performance as well as for performance after controlling for consumption levels.” She stresses, “The latter analysis can be associated with governance – how well the resources at the state’s disposal have been used for progress in the critical sectors of health, education and infrastructure.”
Bhandari looks at the ranking performance in the context of per capita consumption. “This puts the states on a level playing field before comparisons are made. For instance, Bihar’s underperformance on many fronts could partly be explained by lower resources at its disposal which makes it difficult for the state to invest more on health and education. Our analysis controls for this factor while evaluating the state’s performance in delivering key services”, she says.
If one uses the established method, the “raw” ranking suggests that –
• The first tier states comprising Kerala, Goa, Himachal, Punjab, Tamil Nadu, Maharashtra and Haryana are the best performers. However, performance of Maharashtra in infrastructure and that of Haryana in health is markedly poor.
• The second tier states comprising West Bengal, Uttarakhand, Karnataka, Andhra, Gujarat, J&K and Orissa are the medium performers. Orissa stands out for worse performance on infrastructure, compared to its performance in health and education.
• The third tier states comprising Rajasthan, Assam, MP, Chattisgarh, UP, Bihar and Jharkhand are the laggards, mostly comprising of the BIMARU states.
However, she states, “While the analysis above is insightful, it only reiterates the well known fact that states like Kerala have done well on health and education, while the BIMARU states have been laggards.” What it overlooks is the fact that “states with lower resources at their disposal are likely to underperform.” Hence the need to “refine our analysis by creating a level playing field before comparing states.”
This is done by adjusting “the three indices for monthly per capita consumption (MPCE).” She explains, while “GDP per capita and consumption per capita broadly measure the same thing and are tightly correlated, consumption has the benefits of reflecting the actual purchasing power and including income generated from outside the state (i.e. inter state remittances).”
The ‘refined’ analysis throws up the following observations –
• Good performers - Himachal Pradesh, Kerala, Orissa, Tamil Nadu and Bihar have been the best performers across all the three sectors. West Bengal and Chhattisgarh have also been amongst the best off states.
• Laggards - Uttarakhand, Rajasthan, J&K and Jharkhand have been laggards across all the three sectors.
• Average performers - The remaining middle ranking states have varied performance. Goa, Punjab and Karnataka have done well in health and infrastructure, but underperformed in education. On the other hand, Haryana, Andhra, Gujarat, Assam, MP, UP and Maharashtra have each underperformed in two of the three sectors.
Bhandari concludes, “The refined analysis of states throws up important results on which states are making best use of the resources in hand to provide health, education and infrastructure services to its people. It is therefore a useful tool in identifying states whose experiments are working, and which can potentially be replicated by others. While convergence in income levels may take its own time, this analysis will help policy experts, interested observers and even voters to evaluate the success of its state and government.”
Refined vs raw rankings


Comments

TRENDING

From Kerala to Bangladesh: Lynching highlights deep social faultlines

By A Representative   The recent incidents of mob lynching—one in Bangladesh involving a Hindu citizen and another in Kerala where a man was killed after being mistaken for a “Bangladeshi”—have sparked outrage and calls for accountability.  

What Sister Nivedita understood about India that we have forgotten

By Harasankar Adhikari   In the idea of a “Vikshit Bharat,” many real problems—hunger, poverty, ill health, unemployment, and joblessness—are increasingly overshadowed by the religious contest between Hindu and Muslim fundamentalisms. This contest is often sponsored and patronised by political parties across the spectrum, whether openly Hindutva-oriented, Islamist, partisan, or self-proclaimed secular.

When a city rebuilt forgets its builders: Migrant workers’ struggle for sanitation in Bhuj

Khasra Ground site By Aseem Mishra*  Access to safe drinking water and sanitation is not a privilege—it is a fundamental human right. This principle has been unequivocally recognised by the United Nations and repeatedly affirmed by the Supreme Court of India as intrinsic to the right to life and dignity under Article 21 of the Constitution. Yet, for thousands of migrant workers living in Bhuj, this right remains elusive, exposing a troubling disconnect between constitutional guarantees, policy declarations, and lived reality.

Aravalli at the crossroads: Environment, democracy, and the crisis of justice

By  Rajendra Singh*  The functioning of the Ministry of Environment, Forests and Climate Change has undergone a troubling shift. Once mandated to safeguard forests and ecosystems, the Ministry now appears increasingly aligned with industrial interests. Its recent affidavit before the Supreme Court makes this drift unmistakably clear. An institution ostensibly created to protect the environment now seems to have strayed from that very purpose.

'Festive cheer fades': India’s housing market hits 17‑quarter slump, sales drop 16% in Q4 2025

By A Representative   Housing sales across India’s nine major real estate markets fell to a 17‑quarter low in the October–December period of 2025, with overall absorption dropping 16% year‑on‑year to 98,019 units, according to NSE‑listed analytics firm PropEquity. This marks the weakest quarter since Q3 2021, despite the festive season that usually drives demand. On a sequential basis, sales slipped 2%, while new launches contracted by 4%.  

Safety, pay and job security drive Urban Company gig workers’ protest in Gurugram

By A Representative   Gig and platform service workers associated with Urban Company have stepped up their protest against what they describe as exploitative and unsafe working conditions, submitting a detailed Memorandum of Demands at the company’s Udyog Vihar office in Gurugram. The action is being seen as part of a wider and growing wave of dissatisfaction among gig workers across India, many of whom have resorted to demonstrations, app log-outs and strikes in recent months to press for fair pay, job security and basic labour protections.

India’s universities lag global standards, pushing students overseas: NITI Aayog study

By Rajiv Shah   A new Government of India study, Internationalisation of Higher Education in India: Prospects, Potential, and Policy Recommendations , prepared by NITI Aayog , regrets that India’s lag in this sector is the direct result of “several systemic challenges such as inadequate infrastructure to provide quality education and deliver world-class research, weak industry–academia collaboration, and outdated curricula.”

The rise of the civilizational state: Prof. Pratap Bhanu Mehta warns of new authoritarianism

By A Representative   Noted political theorist and public intellectual Professor Pratap Bhanu Mehta delivered a poignant reflection on the changing nature of the Indian state today, warning that the rise of a "civilizational state" poses a significant threat to the foundations of modern democracy and individual freedom. Delivering the Achyut Yagnik Memorial Lecture titled "The Idea of Civilization: Poison or Cure?" at the Ahmedabad Management Association, Mehta argued that India is currently witnessing a self-conscious political project that seeks to redefine the state not as a product of a modern constitution, but as an instrument of an ancient, authentic civilization.

Why experts say replacing MGNREGA could undo two decades of rural empowerment

By A Representative   A group of scientists, academics, civil society organisations and field practitioners from India and abroad has issued an open letter urging the Union government to reconsider the repeal of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and to withdraw the newly enacted Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. The letter, dated December 27, 2025, comes days after the VB–G RAM G Bill was introduced in the Lok Sabha on December 16 and subsequently approved by both Houses of Parliament, formally replacing the two-decade-old employment guarantee law.