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

Countrywide protest by gig workers puts spotlight on algorithmic exploitation

By A Representative A nationwide protest led largely by women gig and platform workers was held across several states on February 3, with the Gig & Platform Service Workers Union (GIPSWU) claiming the mobilisation as a success and a strong assertion of workers’ rights against what it described as widespread exploitation by digital platform companies. Demonstrations took place in Delhi, Rajasthan, Karnataka, Maharashtra and other states, covering major cities including New Delhi, Jaipur, Bengaluru and Mumbai, along with multiple districts across the country.

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.

CFA flags ‘welfare retreat’ in Union Budget 2026–27, alleges corporate bias

By Jag Jivan The advocacy group Centre for Financial Accountability (CFA) has sharply criticised the Union Budget 2026–27 , calling it a “budget sans kartavya” that weakens public welfare while favouring private corporations, even as inequality, climate risks and social distress deepen across the country.

From water scarcity to sustainable livelihoods: The turnaround of Salaiya Maaf

By Bharat Dogra We were sitting at a central place in Salaiya Maaf village, located in Mahoba district of Uttar Pradesh, for a group discussion when an elderly woman said in an emotional voice, “It is so good that you people came. Land on which nothing grew can now produce good crops.”

Paper guarantees, real hardship: How budget 2026–27 abandons rural India

By Vikas Meshram In the history of Indian democracy, the Union government’s annual budget has always carried great significance. However, the 2026–27 budget raises several alarming concerns for rural India. In particular, the vague provisions of the VBG–Ram Ji scheme and major changes to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) have put the future of rural workers at risk. A deeper reading of the budget reveals that these changes are not merely administrative but are closely tied to political and economic priorities that will have far-reaching consequences for millions of rural households.

When free trade meets unequal fields: The India–US agriculture question

By Vikas Meshram The proposed trade agreement between India and the United States has triggered intense debate across the country. This agreement is not merely an attempt to expand bilateral trade; it is directly linked to Indian agriculture, the rural economy, democratic processes, and global geopolitics. Free trade agreements (FTAs) may appear attractive on the surface, but the political economy and social consequences behind them are often unequal and controversial. Once again, a fundamental question has surfaced: who will benefit from this agreement, and who will pay its price?

Penpa Tsering’s leadership and record under scrutiny amidst Tibetan exile elections

By Tseten Lhundup* Within the Tibetan exile community, Penpa Tsering is often described as having risen through grassroots engagement. Born in 1967, he comes from an ordinary Tibetan family, pursued higher education at Delhi University in India, and went on to serve as Speaker of the Tibetan Parliament-in-Exile from 2008 to 2016. In 2021, he was elected Sikyong of the Central Tibetan Administration (CTA), becoming the second democratically elected political leader of the administration after Lobsang Sangay.

'Gandhi Talks': Cinema that dares to be quiet, where music, image and silence speak

By Vikas Meshram In today’s digital age, where reels and short videos dominate attention spans, watching a silent film for over two hours feels almost like an act of resistance. Directed by Kishor Pandurang Belekar, “Gandhi Talks” is a bold cinematic experiment that turns silence into language and wordlessness into a powerful storytelling device. The film is not mere entertainment; it is an experience that pushes the viewer inward, compelling reflection on life, values, and society.

Frugal funds, fading promises: Budget 2026 exposes shrinking space for minority welfare

By Syed Ali Mujtaba* The Ministry of Minority Affairs was established in 2006 during the tenure of Prime Minister Manmohan Singh, following the findings of the Sachar Committee, which documented that Muslims were among the most educationally and economically disadvantaged communities in India. The ministry was conceived as a corrective institutional response to deep structural inequalities faced by religious minorities, particularly Muslims, through focused policy interventions.

Search This Blog