Skip to main content

Gujarat govt blames self for poor GSDP growth, says data wing didn't capture Rs 19,792 crore industrial growth

By Rajiv Shah
Rattled by a relatively poor Gross State Domestic Product (GSDP) growth rate in recent years, two senior Gujarat government officials, ably assisted by an Indian Institute of Management-Ahmedabad (IIM-A) expert, ironically, have put – to quote them --“big question marks on the credibility of the state income estimation and hence on the Directorate of Economics and Statistics (DES) in the state”. They say this in their recent paper, “Measurement Issues in State Income from Registered Manufacturing Sector – Case of Gujarat”, published by IIM-A.
While the IIM-A expert is Prof Ravindra H Dholakia, known for his neo-liberal approach and strong support to the Gujarat “model” of development, the government officials whom he assisted in coming up with the argument, revealingly, are with the state’s powerful statistical wing, DES – Manish B Pandya and Payal M Pateria. Clearly, known to be an excellent economist, without Prof Dholakia’s assistance, the two officials would not have been able to arrive at the conclusions drawn in the paper.
Also laying blame on the state’s industries department for not doing enough to ensure that the contribution of Gujarat’s manufacturing sector to the state’s economic growth is properly calculated, the paper says, “the primary responsibility” of updating the census sector on industries “rests with the office of the Chief Inspector of Factories in the respective state governments, who provides it to the state based Field Operations Division of National Sample Survey Office” of the Government of India.
The paper suggests how the state government is particularly rattled when Gujarat’s poor growth rate in the media. It says, “A substantial revision in manufacturing income leads to major revision in aggregate GSDP and hence in annual growth rates. Such revisions, therefore, become the target of serious criticism by media and doubts are raised on the integrity of the estimation of GSDP as a whole.” Newspapers highlighted how Gujarat government claim of double digit rate despite recession had fallen flat, and single digit growth rate was becoming a norm.
Three of six years was single digit growth in Gujarat
Among discrepancies in data collection, the paper says, these include “inadequate and highly misleading for preparing the quick estimates of state income” in Gujarat, where “more than 1000 units remain uncovered by the ASI. They account for almost 23 per cent of the net value added (NVA) in the sector reported by the ASI. Thus, the official estimates seriously under-report the NVA from the registered manufacturing sector.” It advises “urgent need to correct this situation.”
The paper says, “There are about 3068 census sector factories as per the list of State Industrial Extension Bureau (INDEXTb) in Gujarat, while, as per the ASI frame of Census sector as used by the Industrial Statistical Wing of the Central Statistical Organisation (CSO), Kolkata, there are 1950 census sector factories surveyed during 2011-12. Thus, about 1118 factories consisting of nearly 780 large industries and 338 medium industries having more than 100 workers are left uncovered by the ASI in the state."
It elucidates, the data of 338 medium industries did not find a place in ASI classification, though it was “possible to identify” the industry groups. Of these, 187 “were chemical industries, textile industries, paper industries, gems & jewelry and metal industries”, and the “remaining 151 industries” were either as exports units or processors units. The value added per worker (CAPW) for these industries “worked out at Rs 4.55 lakh.”
“By multiplying Rs. 4.55 lakh of VAPW with the workforce of 36,377 in the 151 industries, the NVA is estimated at Rs 165515 lakh. Thus, in the aggregate, the NVA estimated from the uncovered factories on a conservative side amounts to Rs 19,792.70 crore and remains uncaptured for Gujarat under the present frame of ASI, Kolkata… The uncovered NVA works out to 23 per cent. Thus, proper reporting and estimation would raise the GSDP in the manufacturing sector by at least 23 per cent in Gujarat”, the paper concludes.

Comments

TRENDING

JP advised RSS to give up Hindu Rashtra, disband itself: Ex-IAS officer tells Modi

Counterview Desk
Major MG Devasahayam IAS (Retd), chairman, People-First, in an open letter to Prime Minister Narendra Modi on the occasion of Jayprakash Narain’s (JP’s) death anniversary (October 11) has wondered whether he remembers “a patriot called Jayaprakash Narayan”. Recalling what JP thought on issues such as communalism, freedom, democracy, Hindutva etc., Devasahayam says, Modi has been been doing “the very opposite of the principles and values for which JP lived and died.”

India's GDP down by 50%, not 23%, job loss 200 million not 122 million: Top economist

By Our Representative One of India’s topmost economists has estimated that India’s Gross Domestic Product (GDP) decline was around 50%, and not 23%, as claimed by the Government of India’s top data body, National Statistical Organization (NSO). Prof Arun Kumar, who is Malcolm S Adiseshiah chair professor, Institute of Social Sciences, New Delhi, said this was delivering a web policy speech, organised by the Impact and Policy Research Institute (IMPRI), New Delhi.

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

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".

UP chief secretary, DGP have 'surrendered' to political diktat: 92 retired IAS, IPS officials

Counterview Desk
In an open letter to Uttar Pradesh chief minister Yogi Adityanath, 92 retired IAS, IFS and IPS bureaucrats, commenting on “blatant violations of the rule law” following the Hathras incident, have blamed that the Chief Secretary and the Director General of Police for abjectly failing to exercise control over a “highly compromised” administration the state.

Hathras reflects Manu's mindset dominates: 'Women are false, it's in their nature to seduce'

By Parijat Ghosh, Dibyendu Chaudhuri*
The woman died and then we woke up to protest. She was alive for two weeks after the heinous incident. Many of us even didn’t notice what had happened at Hathras, how she fought during the next 15 days. Those who noticed, many of them were not sure what actually had happened. So much so, we as a nation were more busy in finding out who among the Bollywood actresses were taking drugs, who smoked weed, who had ‘inappropriate’ or more than one relationship, what kind of private conversations they had in their chat boxes and what not!

Gujarat literati flutter: State Akademi autonomy curb a Sahitya Parishad poll issue?

By Dankesh Oza*
The 115-year-old Gujarati Sahitya Parishad is in election mode. More than 3,000 life members of the Parishad are set to elect its 52nd president and 40 plus central working committee (CWC) members, which in turn will elect its executive and two vice presidents, six secretaries and a treasurer for the coming three years (from 2021 to 2023).

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.

Atrocities against Dalits: Why don't MPs, MLAs from the community ever speak up?

By Vidya Bhushan Rawat*
In Gujarat, a young Dalit activist lawyer Devji Maheshwari, belonging to the Backward and Minority Communities Employees Federation (BAMSCEF) was killed in Surat, allegedly by a goon who was warning him against his Facebook posts not to speak up against Brahmanism. Facts have come to light suggesting there are other issues also which led to the murder, mostly related to land disputes, many a time ignored by activists.

Delhi riots: Even British didn't accuse Bhagat Singh of reading Lenin, Jack London

By Vikash Narain Rai*
After the #BlackLifeMatters movement seriously tested the credibility of police across America, the Houston police chief Art Acevado talked of ending “lawful but awful” policing. No comparison, but in India, a citizens’ committee comprising former top judges and bureaucrats is now set to inquire into the role of the state machinery and media in handling the February 2020 Delhi violence, which followed protests against the Citizenship Amendment Act (CAA), “as the investigation by the Delhi Police has evoked extensive critical commentary in recent times.”