Skip to main content

Study by top consultants KPMG finds Gujarat's investment climate dipping, talent pool below major states

Counterview Desk
A top report prepared by well-known consultants, KPMG, employed in the past by the Gujarat government for advising on how to improve the state’s investment climate, has revealed that the state’s investment potential has been dipping over the last five years. In its just-released report, titled “District wise skill gap study for the State of Gujarat (2012-17, 2017-22)”, KPMG, which prides itself for having a network of global professionals offering best of advise on improving investment climate to governments and private parties, has shown, through a chart, that in Gujarat a total of Rs 103,871 crore of investment was made in 2012, which was the lowest since 2008.
Thus, in 2008, investment worth Rs 121,852 crore was made, which jumped to a whopping Rs 147,971 crore in 2009. However, thereafter, the investment began slipping – in 2010 it was Rs 141,021 crore, in 2011 it further slipped to 140,474 crore, and, finally, in 2012 it was Rs 103,871 crore. The report has been prepared for the National Skill Development Corporation, on request from the Gujarat government, in order to "assess" the gap Gujarat would face over the next several years in the demand and supply of manpower in view of the “huge” investment the state’s different sectors have been able to attract in the recent past.
While pointing out that "huge" investment across the state would mean the need for talented manpower, the report regrets, Gujarat has only a “marginally better penetration of higher education compared to the national average.” Thus, while Gujarat’s enrolment in higher education is 14.8 per 1000 population, as against the all-India average of 14 per 1000 population. It comments, “Other progressive knowledge economies like Andhra Pradesh, Tamil Nadu and Karnataka have higher penetration than Gujarat” – Andhra Pradesh 21.8 per cent, Tamil Nadu 20.8 per cent, Maharashtra 17.4 per cent, and Karnataka 16.4 per cent.
Higher education penetration per 1000 population
Not only has investment dipped, the report has found that number of large-scale units proposing to invest, too, has dipped. Thus, the number of big units proposing to invest in Gujarat was the highest in 2005, with 860, but these reached 383 in 2008. In 2009, as many as 382 big units proposed to invest in Gujarat. In 2010, these went up to 496. In 2011, these further increased to 541. However, in 2012, the numbers went down to the lowest ever since 2002 – 372. The top consultants give no explanation on say why this has happened, only saying, “Over the last five years, the state has witnessed over Rs 1 lakh crore of investments proposed per year.”
At the same time, KPMG also found a wide regional variation in investment, suggesting, efforts by the Gujarat government to uplift backward regions has not succeeded. It has said, “Analysis of regional distribution of investments in Gujarat indicates that the industrial development is concentrated around few districts of Kutch, Bharuch, Surat, Vadodara, Bhavnagar, Banaskantha, Rajkot, Jamnagar while other regions including the Dangs, Narmada, Dahod, Navsari remain backward in terms of industrial development.” In 2002-12, Kutch attracted an investment of Rs 5.24 lakh crore, while Ahmedabad received an investment of just Rs 15,801 crore.

Comments

TRENDING

Nobel laureates join international figures, seek release of Bhima Koregaon accused activists

Nobel laureates Olga Tokarczuk,  Wole Soyinka Counterview Desk  As many as 57 top international personalities, including Nobel laureates, academics, human rights defenders, lawyers cultural personalities, and members of Parliament of European countries, have urged the Prime Minister and the Chief Justice of India to ensure immediate release of human rights defenders in India “into safe conditions”.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Buddhist shrines massively destroyed by Brahmanical rulers in "pre-Islamic" era: Historian DN Jha's survey

Nalanda mahavihara By Our Representative 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".

Top ex-Gujarat babu tells Modi: Not yoga but solar system is our biggest source of energy

By Rajiv Shah  An email alert to Counterview from a top ex-IAS bureaucrat, termed as Gujarat’s turnaround man for revamping loss-making state public sector undertakings (PSUs), has sought to take a dig at Prime Minister Narendra Modi’s remark on the Yoga day – that the ancient Indian exercise provides an “infinite solutions” within ourselves, offering “the biggest source of energy in the universe.”

Hunger, lack of food security behind India's 'slip' in UN's sustainable development rank

By Dr Gian Singh*  According to a report released by the United Nations on June 6, 2021, India's ranking of achieving Sustainable Development based on the 17 Social Development Goals (SDGs) set by the 193 countries in the 2003 agenda, which was 115th last year, has slipped to 117th position this year. India ranks not only the lowest among the BRICS countries -- Brazil, the Russian Federation, India, China, and South Africa but also below the four South Asian countries -- Bhutan, Sri Lanka, Nepal, and Bangladesh.

Collapse of healthcare system? Why 90% of Covid patients treated at home survived

By Bobby Ramakant, Sandeep Pandey* Well known Hindustani classical singer Padma Vibhu shan Channulal Mishra, chosen as one of the proposers of Narendra Modi in Lok Sabha elections, lost his wife and elder daughter to Covid in private hospitals in Varanasi. Younger daughter has accused Medwin Hospital of charging Rs 1.5 lakh for treatement of her sister and not being able to explain the cause of death. Pandit Channulal Mishra has asked for a probe into his daughter’s death from the Chief Minister. The family has also asked for the CCTV footage of the ward where deceased daughter was admitted for a week.

Rooted in mistrust? Covid-19’s march into rural India is a very different ball game

By Sudhir Katiyar* As the Covid-19 virus penetrates rural India, the rural communities are responding very differently from their urban counterparts who rushed to the hospitals. The rural communities are avoiding the public health facilities and any mention of the disease. The note argues that this supposedly irrational response is based on a deep-seated mistrust of the state by the rural communities. It can not be resolved with routine Information, Education and Communication (IEC) measures suggested in the Government of India SOP for tackling Covid-19 in rural areas.

Courageous, in-depth attempt to confirm common spiritual values of Christ, Buddha

By RB Sreekumar, IPS*  All religions, both theistic and atheistic designed conceptual and practical architecture, for holistic and comprehensive elevation and enlightenment of humanity. PK Vijayan, in his novel “Nirvana of Jesus Christ” (Notion Press, 2020) through creative imagination portrayed personality evolution of the two progenitors of God-centric and sagaciously logical major religions – Jesus Christ of Christianity and Gautama Buddha of Buddhism.

Why hasn't Govt of India responded to US critique of freedom of religion under Modi?

By Fr Cedric Prakash SJ* About two weeks ago, on May 12, 2021, the US Secretary of State Antony J Blinken released in Washington the ‘2020 International Religious Freedom Report.’ This official annual report of the US Government details the status of religious freedom in nearly 200 foreign countries and territories and describes US actions to support religious freedom worldwide. Mandated by the International Religious Freedom Act of 1998, this report highlights the fact that ‘religious freedom is both a core American value and a universal human right’.

Covid fear? Cremation rituals gone upside down, Dalits asked to do Brahminical rituals

By Abhay Jain, Sandeep Pandey*  As Covid consumes human life in a very conspicuous way we are confronted with additional problem of disposing of human corpses. Cremation grounds are lit with continuous pyres, graveyards are running out of land and now Ganga has become a mass grave potentially polluting its water.