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

Amit Shah 'wrong': Lack of transparency characterized bank frauds, NPAs, jobs data

Counterview Desk
India's senior RTI activists Nikhil Dey, Anjali Bhardwaj, Venktesh Nayak, Rakesh Reddy Dubbudu, Dr. Shaikh Ghulam Rasool, Pankti Jog and Pradip Pradhan, who are attached with the National Campaign for Peoples' Right to Information (NCPRI), have said that Union home minister Amit Shah's claim that the Government of India is committed to transparency stands in sharp contrast to its actual actions.

Untold story of Jammu: Business 'down', students fear lynching, teachers can't speak

By Rajiv Shah
A just-released report, seeking to debunk the view that people in Jammu, the second biggest city of Jammu and Kashmir (J&K) after Srinagar, people had gone “out celebrating” abrogation of Article 370 which took away the state’s special status, has reported what it calls “abominably high levels of fear” across all sections in the town.

132 Gujarat citizens, including IIM-A faculty, others declare solidarity with Kashmiris

Counterview Desk
A week after it was floated, 132 activists, academics, students, artists and other concerned citizens of Gujarat, backed by 118 living in different parts of India and the world, have signed a "solidarity letter" supporting the people of Jammu and Kashmir (J&K), who, it claims, have been silenced and held captive in their own land. The signatories include faculty members and scholars of the prestigious Indian Institute of Management-Ahmedabad (IIM-A).

Success of 'political' Hinduism: Kashmiris being depicted as antagonists of rest of India

By Anand K Sahay*
There are times in history when facts call attention to themselves; they assert their independence in all its amplitude and are in no need of the crutch of interpretation. Such a moment is visible in Kashmir now. Merely by being on the table, the facts there taunt the regime’s proclamations.

Kashmiris in a civil disobedience mode, are going against 'diktat' to open shops

Counterview Desk
A team of concerned citizens, including Ludhiana-based psychiatrist and writer Anirudh Kala, Mumbai-based activist and public health professional Brinelle Dsouza, Delhi-based journalist and writer Revati Laul, and social activist Shabnam Hashmi, travelled to Kashmir and Jammu to understand the impact of the abrogation of Article 370 and the subsequent security clampdown and communication blockade on the lives of the people of Jammu and Kashmir (J&K).

Gujarat's incomplete canals: Narmada dam filled up, yet benefits 'won't reach' farmers

By Our Representative
Even as the Gujarat government is making all out efforts to fill up the Sardar Sarovar dam on Narmada river up to the full reservoir level (FRL), a senior farmer rights leader has said the huge reservoir, as of today, remains a “mirage for the farmers of Gujarat”.
In a statement, Sagar Rabari of the Khedut Ekta Manch (KEM), has said that though the dam’s reservoir is being filled up, the canal network remains complete. Quoting latest government figures, he says, meanwhile, the command area of the dam has been reduced from 18,45,000 hectares (ha) to 17,92,000 ha.
“According to the website of the Sardar Sarovar Narmada Nigam Ltd, which was last updated on Friday, while the main canal, of 458 km long, has been completed, 144 km of ranch canals out of the proposed length of 2731 km remain incomplete.
Then, as against the targeted 4,569 km distributaries, 4,347 km have been constructed, suggesting work for 222 km is still pending. And of the 15,670 km of minor canal…

Ceramic worker dies: 20,000 workers in Thangadh, Gujarat, 'risk' deadly silicosis

By Our Representative
Even as the country was busy preparing for the Janmashtami festival on Saturday, Hareshbhai, a 46-year-old ceramic worker from suffering from the fatal lung disease silicosis, passed away. He worked in a ceramic unit in Thangadh in Surendranagar district of Gujarat from 2000 to 2016.
Hareshbhai was diagnosed with the disease by the GCS Medical College, Naroda Road, Ahmedabad in 2014. He was found to be suffering from progressive massive fibrosis. He is left behind by his wife Rekha sister and two sons Deepak (18) and Umesh (12),
The death of Hareshbhai, says Jagdish Patel of the health rights group Peoples Training and Research Centre (PTRC), suggests that silicosis, an occupational disease, can be prevented but not cured, and the Factory Act has sufficient provisions to prevent this.
According to Patel, the pottery industry in the industrial town of Thangadh has evolved for a long time and locals as well as migrant workers are employed here. There are abou…