Vibrant Gujarat? State industries' net value added slips into the negative for two consecutive years

By Rajiv Shah

Gujarat industry’s net value added (NVA), which is calculated by deducting all the depreciation charges – including consumption of fixed capital such as on raw materials, power and other inputs – has suddenly gone into the minus, surprising many an economist. The latest Annual Survey of Industries (ASI) data, put out in the first week of this month, suggest that NVA, which economists consider as “indicating the actual investment potential of a sector of economy”, has gone into the negative for two consecutive years continuously. It was minus (--) 0.64 per cent in 2010-11 and, again, minus (--) 1.72 per cent in 2011-12. The ASI is the principal source of data on various aspects of registered industrial establishments. They are part of the annual exercise by the Government of India’s Central Statistics Office’s industrial statistics wing.
The fresh data showing poor investment potential of Gujarat in the industrial sector suggests that, after a drastic rise in the recent past, the sector may be experiencing stagnation, though economists would like to wait to reach such a conclusion. Yet, the fact is, the negative growth of the NVA of Gujarat industries in 2011-12 stands in sharp contrast to 18.69 per cent rise in the NVA of the country as a whole, with several states’ NVA rising by a whopping 152.47 per cent (Karnataka), 127.92 per cent (Rajasthan), Punjab (61.86 per cent), Bihar (27.83 per cent), and Haryana (20.96 per cent). In fact, Gujarat was one of the five states whose NVA went into minus in 2011-12, other states being Uttar Pradesh (--16.30 per cent), Jharkhand (--13.91 per cent), West Bengal (--2.29 per cent), and Assam (1.88 per cent).
Gujarat’s poor showing in NVA has come even as the state’s overall rank in the total amount of net value added in rupee terms slipped from No 2 in the country to No 3. Maharashtra has consistently maintained its No 1 position. In 2011-12, Maharashtra’s NVA was Rs 1.54 lakh crore, and at Rs 1.49 lakh crore in 2010-11. In 2011-12, Karnataka eased out Gujarat as No 2. In 2010-11, Gujarat’s NVA stood at Rs 89,447 crore, while No 3 was Karnataka at Rs 71,993 crore. But in 2011-12, Karnataka snatched away Gujarat’s No 2 position by registering NVA of Rs 1.03 lakh crore. Gujarat, which went into the negative, on the other hand, registered an NVA of Rs 87,909 crore, going into the negative.
Significantly, Gujarat’s NVA stagnated for two consecutive years after its industries registered a very healthy rise in NVA of 49.01 per cent in 2009-10. The rise came about following negative NVA in the previous year, of – 2.72 per cent in 2008-09. Even then, it is a fact that the ASI figures 1998-99 onwards suggest that Gujarat’s NVA registered an impressive growth of 14.5 per cent per annum till 2011-12. Prof Indira Hirway, a senior economist, told Counterview, “The data suggest that the investment climate might have suffered a setback over the two years in question. However, good investment cannot always be a continuous process each year. It has its own ups and downs. Hence, it is always advisable to calculate NVA taking a long-term period to know the exact situation.”
There is a distinct view among Gujarat-based economic experts that the state’s own home-grown industry has not been growing particularly consistently over the last few years. This view has been openly expressed by senior economic consultant Sunil Parikh in different open forums. In its drive to attract outside investment through bi-annual state-sponsored Vibrant Gujarat summits, Parikh believes, the investors from outside the state have been able to take away a bigger part of the cake, while the state’s own industries showed a degree of stagnation. There is, however, no word or analysis from the government over the tangled issue, as it would be politically dangerous to trigger its nuances at time when Gujarat chief minister Narendra Modi is BJP’s Prime Ministerial candidate in ensuring Lok Sabha polls.

Comments

Bill Gates as funder, author, editor, adviser? Data imperialism: manipulating the metrics

By Dr Amitav Banerjee, MD* When Mahatma Gandhi on invitation from Buckingham Palace was invited to have tea with King George V, he was asked, “Mr Gandhi, do you think you are properly dressed to meet the King?” Gandhi retorted, “Do not worry about my clothes. The King has enough clothes on for both of us.”

Stagnating wages since 2014-15: Economists explain Modi legacy for informal workers

By Our Representative Real wages have barely risen in India since 2014-15, despite rapid GDP growth. The country’s social security system has also stagnated in this period. The lives of informal workers remain extremely precarious, especially in states like Jharkhand where casual employment is the main source of livelihood for millions. These are some of the findings presented by economists Jean Drèze and Reetika Khera at a press conference convened by the Loktantra Bachao 2024 campaign.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah* The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Magnetic, stunning, Protima Bedi 'exposed' malice of sexual repression in society

By Harsh Thakor* Protima Bedi was born to a baniya businessman and a Bengali mother as Protima Gupta in Delhi in 1949. Her father was a small-time trader, who was thrown out of his family for marrying a dark Bengali women. The theme of her early life was to rebel against traditional bondage. It was extraordinary how Protima underwent a metamorphosis from a conventional convent-educated girl into a freak. On October 12th was her 75th birthday; earlier this year, on August 18th it was her 25th death anniversary.

'Assault on civic, academic freedom, right to dissent': TISS PhD student's suspension

By Our Representative The Mumbai-based civil rights group All India Secular Forum (AISF) has said that the suspension of Tata Institute of Social Sciences (TISS) PhD student Ramadas Prini Sivanandan (30) for two years for allegedly indulging in activities which were "not in the interest of the nation" is meant to send out the message that students and educational institutes will be targeted if they don’t align with the agenda and ideology of the ruling regime. TISS in a notice served to Ramadas has cited that his role in screening the documentary 'Ram Ke Naam' on January 26 as a "mark of dishonour and protest" against the Ram Mandir idol consecration in Ayodhya. Another incident cited in the notice was Ramadas’ participation in the protest against unfair government policies in Delhi under the banner of the Progressive Students' Forum (PSF)-TISS. TISS alleges the institute's name was "misused", which wrongfully created an impression that

Joblessness, saffronisation, corporatisation of education: BJP 'squarely responsible'

Counterview Desk In an open appeal to youth and students across India, several student and youth organizations from across India have said that the ruling party is squarely accountable for the issues concerning the students and the youth, including expensive education and extensive joblessness.

Why it's only Modi ki guarantee, not BJP's, and how Varanasi has seen it up-close

"Development" along Ganga By Rosamma Thomas* I was in Varanasi in this April, days before polling began for the 2024 Lok Sabha elections. There are huge billboards advertising the Member of Parliament from Varanasi, Prime Minister Narendra Modi. The only image on all these large hoardings is of the PM, against a saffron background. It is as if the very person of Modi is what his party wishes to showcase.

Following the 3000-year old Pharaoh legacy? Poll-eve Surya tilak on Ram Lalla statue

By Sukla Sen Located at a site called Abu Simbel in Nubia, Upper Egypt, the eponymous rock temples were created in 1244 BCE, under the orders of Pharaoh Ramesses II (1303-1213 BC)... Ramesses II was fond of showcasing his achievements. It was this desire to brag about his victory that led to the planning and eventual construction of the temples (interestingly, historians say that the Battle of Qadesh actually ended in a draw based on the depicted story -- not quite the definitive victory Ramesses II was making it out to be).

Poll promises: Political parties 'playing down' need to retrieve and restore adivasi land

By Palla Trinadha Rao* The Scheduled Tribes population of 10.43 crore constitutes 8.6% of the population in the country inhabiting 26 States and 6 Union Territories. Parliament elections along with Assembly elections in some states have been notified this year.

India's "welcome" proposal to impose sin tax on aerated drinks is part of to fight growing sugar consumption

By Amit Srivastava* A proposal to tax sugar sweetened beverages like tobacco in India has been welcomed by public health advocates. The proposal to increase sin taxes on aerated drinks is part of the recommendations made by India’s Chief Economic Advisor Arvind Subramanian on the upcoming Goods and Services Tax (GST) bill in the parliament of India.

Counterview

Search This Blog