Gujarat govt blames self for poor GSDP growth: 'Data wing didn't capture 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

NYT: RSS 'infiltrates' institutions, 'drives' religious divide under Modi's leadership

By Jag Jivan A comprehensive New York Times investigation published on December 26, 2025, chronicles the rise of the Rashtriya Swayamsevak Sangh (RSS) — characterized as a far-right Hindu nationalist organization — from a shadowy group founded in 1925 to the world's largest right-wing force, marking its centenary in 2025 with unprecedented influence and mainstream acceptance. Prime Minister Narendra Modi , who joined the RSS as a young boy and later became a full-time campaigner before being deputized to its political wing in the 1980s, delivered his strongest public tribute to the group in his August 2025 Independence Day address. Speaking from the Red Fort , he called the RSS a "giant river" with dozens of streams touching every aspect of Indian life, praising its "service, dedication, organization, and unmatched discipline." The report describes how the RSS has deeply infiltrated India's institutions — government, courts, police, media, and academia — ...

From colonial mercantilism to Hindutva: New book on the making of power in Gujarat

By Rajiv Shah Professor Ghanshyam Shah ’s latest book, “ Caste-Class Hegemony and State Power: A Study of Gujarat Politics ”, published by Routledge , is penned by one of Gujarat ’s most respected chroniclers, drawing on decades of fieldwork in the state. It seeks to dissect how caste and class factors overlap to perpetuate the hegemony of upper strata in an ostensibly democratic polity. The book probes the dominance of two main political parties in Gujarat—the Indian National Congress and the BJP—arguing that both have sustained capitalist growth while reinforcing Brahmanic hierarchies.

ArcelorMittal faces global scrutiny for retreat from green steel, job cuts, and environmental violations

By Jag Jivan ArcelorMittal is facing mounting criticism after cancelling or delaying nearly all of its major green steel projects across Europe, citing an “unsupportive policy environment” from the European Union . The company has shelved projects in Germany , Belgium , and France , while leaving the future of its Spanish decarbonisation plan uncertain. The decision comes as global unions warn that more than 5,500 jobs are at risk across its operations, including 4,000 in South Africa , 1,400 in Europe, and 160 in Canada .

Domestic vote-bank politics 'behind official solidarity' with Bangladeshi Hindus

By Sandeep Pandey, Faisal Khan The Indian government has registered a protest with Bangladesh over the mob lynching of two Hindus—Deepu Chandra Das in Mymensingh and Amrit Mandal in Rajbari. In its communication, the government cited a report by the Association of Hindus, Buddhists and Christian Unity Council, which claims that more than 2,900 incidents of killings, arson, and land encroachments targeting minorities have taken place since the interim government assumed power in Bangladesh.

Dalit woman student’s death sparks allegations of institutional neglect in Himachal college

By A Representative A Dalit rights organisation has alleged severe caste- and gender-based institutional violence leading to the death of a 19-year-old Dalit woman student at Government Degree College, Dharamshala, Himachal Pradesh, and has demanded arrests, resignations, and an independent inquiry into the case.

2025 was not just a bad year—it was a moral failure, it normalised crisis

By Atanu Roy* The clock has struck midnight. 2025 has passed, and 2026 has arrived. Firecrackers were already bursting in celebration. If this is merely a ritual, like Deepavali, there is little to comment on. Otherwise, I find 2025 to have been a dismal year, weighed down by relentless odds—perhaps the worst year I have personally witnessed.

Gig workers’ strike halts platforms, union submits demands to Labour Ministry

By A Representative India’s gig economy witnessed an partial disruption on December 31, 2025, as a large number of delivery workers, app-based service providers, and freelancers across the country participated in a nationwide strike called by the Gig & Platform Service Workers Union (GIPSWU). The strike, which followed days of coordinated protests, shut down major platforms including Zomato , Swiggy , Blinkit , Zepto , Flipkart , and BigBasket in several areas.

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

The instrument of oppression and liberation: A new look at the flute in Hindi poetry

By Ravi Ranjan* The intellectual revolution brought about by structuralism in the mid-twentieth century fundamentally altered the way scholars approached literature, language, anthropology, and culture. At its core lay the conviction that all human expressions—whether linguistic, mythic, or literary—are organized by deep, underlying structures that reflect universal patterns of the human mind.

Search This Blog