Gujarat's consumer expenditure "not commensurate" with the state's growth rate

By Jag Jivan
Latest information from a well-placed Gujarat official source has revealed that Gujarat’s private consumer expenditure is not commensurate with the overall growth the state has been experiencing. Suggesting dormant capacity of private consumers as compared to many other states, the data – as found reflected in a top document yet to be made public – suggest that in 2011-12 Gujarat’s gross state domestic product (GSDP) at current prices was 611,767 crore, but the private consumer expenditure formed Rs 287,661 crore, or just about 47 per cent of the GSDP. If the data are any indication, this was the lowest percentage spent by an individual state in proportion to its GSDP.

Rs crore at current prices

According to a World Bank definition, “Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households.” Government officials admit, this suggests that while Gujarat’s growth rate may be “robust”, but when it comes to actual consumer spending, things are not as rosy as they seem on the surface. “Either Gujaratis are not good spenders, or they do not have enough purchasing power compared to at least richer comparable states”, a senior official told Counterview on condition of anonymity.

As percentage of GSDP, Gujarat’s private consumer expenditure was below than such comparable states having good GSDP growth like Andhra Pradesh (66 per cent), Haryana (48 per cent), Karnataka (61 per cent), Kerala (68 per cent), Maharashtra (50 per cent), Punjab 63 per cent), Tamil Nadu (59 per cent), and so on. Significantly, Gujarat’s GSDP was 6.79 per cent of the all-India gross state domestic product (Rs 9,009,722 crore), while private consumer expenditure was 5.6 per cent of the country’s, which was Rs 5,141,896 crore in 2011-12).

The document admits, in the long term a fall in the “share of private consumption expenditure to GDP at market prices” suggests lack of buoyancy, adding, there is a need to increase the “share of private consumption expenditure to GDP.” The poor “share of final consumption expenditure”, in fact, also reflects, according to the document, poor share of services in “the final consumption expenditure.” Suggesting the problem is universal for all progressive states, the document suggests, poor development of the service sector is responsible for this. It would adversely affect on taxes proposed to be levied on goods and services in the form of goods and services tax (GST).

While officials do not admit it in so many words, actually, the data are a reflection of poor spending capacity of Gujarat’s population. In the rural areas, the monthly per capita expenditure (MPCE) of Gujarat was Rs 1,536, which is lower than eight major Indian states out of 1s7 states selected for analysis by the National Sample Survey (NSS), India’s premier statistics gathering organization. The all-India average MPCE is Rs 1,430 for the rural areas. Similarly, in the urban areas, while Gujarat’s MPCE at Rs 2,581 is lower than eight other states, what is particularly shocking is, the all-India average MPCE is higher than that of Gujarat , at Rs 2,630.

Comments

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman* The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat* The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor* Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

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...

Proposals for Babri Masjid, Ram Temple spark fears of polarisation before West Bengal polls

By A Representative A political debate has emerged in West Bengal following recent announcements about plans for new religious structures in Murshidabad district, including a proposed mosque to be named Babri Masjid and a separate announcement by a BJP leader regarding the construction of a Ram temple in another location within Behrampur.

Global LNG boom 'threatens climate goals': Banks urged to end financing

By A Representative The world is on the brink of an unprecedented surge in Liquefied Natural Gas (LNG) development, with 279 new projects planned globally, threatening to derail international climate goals and causing severe local impacts. This stark warning comes from a coalition of organizations—including Reclaim Finance, Rainforest Action Network, BankTrack, and others—that today launched the " Exit LNG " website, a new mapping project exposing the extent of the expansion, the companies involved, and their bank financiers.

Search This Blog