Skip to main content

Industrial investment in Gujarat: Chief minister "contradicts" Narendra Modi's claims

By Satyakam Mehta
Latest Government of Gujarat figures, released in the state assembly by none other the state’s chief minister, Anandiben Patel, go a long way to show that there is something fundamentally wrong with huge claims of a mind-boggling Rs 76 lakh crore during the biennial Vibrant Gujarat business investment summits, starting with 2003.
During the last summit alone, in January 2015, the state government claimed a whopping Rs 25 lakh crore as proposed investment, though no breakup has yet been provided on who invested where. At the earlier summit in 2013, when an investment of Rs 10 lakh crore was announced, the officialdom again refrained from giving detailed figures of who all wishes to invest in Gujarat.
While Prime Minister Narendra Modi called the 2015 summit “Davos in action”, and United Nations secretary-general Ban Ki-moon supported him by saying, "Vibrant Gujarat made the whole world vibrate with dynamism", others too following suit by showering accolades in their own way .
But clearly, as many critics say, statistics are adequate enough to make one sit up and think. Already, many critics have suggested that the cumulative foreign direct investment (FDI) of the entire country through April 2000 to March 2013 added up to Rs 8,96,000 crore, according to figures from the Department of Industrial Policy and Promotion (DIPP).
However, now the Gujarat chief minister herself has let the cat out of the bag. The number thrown up by her as the state's full-time industries minister in an answer to a written question to the just-ended Gujarat assembly session offers a very different picture.
If Patel is to be believed, Gujarat attracted investments of worth Rs 17,100 crore during the financial year 2013-14, which is down by 20 per cent over the previous year’s Rs 21,500 crore.
In fact, official Gujarat figures put together by this correspondent suggest that the cumulative investment over the last five financial years, between 2009-10 and 2013-14, was just Rs 1,03,864 crore. Interesting though it may seem, this investment includes those made by large companies in Gujarat as also micro, small and medium enterprises (MSMEs).
There is nothing to suggest that the investment rose by geometrical proportions. In fact, the figures suggest that there was only a marginal increase in investment in the MSME sector over the years. At the same time, they suggest, there was a sharp fall in investment by large industries. This happened despite huge claims of Gujarat being the most industry-friendly state. In fact, none other than Modi has flagged Gujarat as “the country’s growth engine.”
The chief minister’s figures show that the large units attracted an investment of Rs 4,146 crore in 2013-14 m which was nearly 50 per cent less than 2012-13, when the investment figures were to the tune of Rs 9,165 crore.
A simultaneous perusal of the data released by the DIPP further suggests that the number of investment proposal figures have gone down over the years. Thus, the number of industrial entrepreneur memorandums (IEMs) and letters of intent (LoIs) of Gujarat went down from 544 in 2011 to 354 in 2013, which is a whopping decline to the tune of 35 per cent.
As for the proposed investment in value terms, they came dewn from Rs 1,42,000 crore in 2012 to Rs 94,259 crore.
The DIPP figures also reveal that the trend has been continuing: According to figures available up to July 2014 vis-à-vis the same period in 2013,the investment proposals declined from 223 to 205, and in value terms, the decline was from Rs 61,842 crore to Rs 21,979 crore (64 per cent).

Comments

TRENDING

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

"Misleading" satellite images being shared on Balakot surgical strike on Jaish camp

By Dr Vinay Kate*
With every passing day more questions are being raised about the surgical strike India did in Balakot as a response to Pulwama attacks. So far the Indian media has claimed mass casulaty of 300+ terrorists of Jaish-e-Mohammad in this surgical strike, but there is hardly any report from foreign media about the same.

Extreme repression, corporate loot, cultural genocide "characterise" India's tribal belt

Counterview Desk
As Lok Sabha polls approach, there is considerable ferment in one section of the population -- India's Adivasis, forming about 8.6 per cent of India's population. Things became particularly critical following the February 14, 2019 Supreme Court order, allegedly seeking to evict lakhs of tribals from their forest lands.

Industry in India "barely growing", export growth 0%, whither moral anchors?

Counterview Desk
In a sharp critique of the Modi government, the Indian Institute of Management-Ahmedabad (IIM-A), one of world renowned economist Prof Kaushik Basu, who is Professor of Economics and Carl Marks Professor of International Studies at Cornell University, has told students at the IIM-A’s 54th Annual Convocation on March 16, 2019 that they have a “special responsibility” on their shoulders, “the responsibility to reject narrow sectarianism, uphold scientific thinking, openness to new ideas, and freedom of speech.”

Gujarat model? Industrial effluents "invade" borewells, discharge coloured water in farms

By Rajiv Shah
In a major embarrassment for Gujarat model, of the 21 samples taken by officials of the state government's environmental watchdog Gujarat Pollution Control Board (GPCB) in two villages of Vadodara district and analyzed by its laboratory in Gandhinagar, the state capital, to find out pollution level in groundwater, 16 were assessed as highly contaminated – these were, in fact, found to be discharging reddish, brownish, reddish, or yellowish water.

Refugees as criminals? US govt report blames Amit Shah for calling Bangladeshis termites

Counterview Desk
The chapter “Freedom of Movement” of the US State Department’s “India 2018 Human Rights Report”, released recently, has criticized BJP chief Amit Shah for terming alleged Bangladeshis who may be in Assam as “termites”, because their names were struck down from the list of National Register of Citizens, under preparation in the state.
Pointing out that four million residents were excluded from Assam’s final draft list, leading to “uncertainty over the status of these individuals, many of whose families had lived in the state for several generations”, the report regrets, the Indian law does not even contain the term “refugee,” treating refugees like Rohingiyas as “any other foreigners.”
“Undocumented physical presence in the country is a criminal offense. Persons without documentation were vulnerable to forced returns and abuse”, the report says.
Text of the Freedom of Movement chapter: The law provides for freedom of internal movement, foreign travel, emigration, a…

Congress would win just 9 of 26 Lok Sabha seats: Gujarat Assembly segment-wise analysis

By Rajiv Shah
Even as the Congress plans its first working committee meet in Gujarat on February 28 after an almost 58 year gap, there is reason to wonder what is in store for India’s grand old party in a state which has been long been a BJP bastion – in fact ever since mid-1990s. Ahead of the then assembly polls in late 2012, talking with me, a senior Gujarat Congress leader, currently Rajya Sabha MP, frankly said he saw no reason why Congress would win.

"Pro-corporate" Supreme Court order on FRA would further marginalize Adivasis

By VS Roy David, JP Raju*
For millions of Adivasis and other traditional forest dwellers February 13, 2019 will go down in history as the day of apocalypse. This is like the proverbial Black Friday where millions of most marginalized people of India were ordered by malicious anti-people draconian Supreme Court order depriving them the life and livelihood by evicting them from their habitats.

Financial inclusion? Not micro-loans; India's poor "need" investment in health, education

By Moin Qazi*
India has grown into a global powerhouse. Its economy is soaring but the picture on the ground is still quite arid. The green shoots that you see are only a patch of its landscape. Most Indians are hapless victims of inequity. India is one country where intense poverty abounds in the shadow of immense wealth.

India, Pakistan told to eliminate nuclear weapons: N-war "would kill" 2 billion

Counterview Desk
The International Physicians for the Prevention of Nuclear War (IPPNW), a non-partisan federation of national medical organizations in 64 countries, representing tens of thousands of doctors, medical students, other health workers, and concerned citizens, claiming to share the common goal of creating a more peaceful and secure world freed from the threat of nuclear annihilation, has warned that “an unprecedented global catastrophe” awaits the globe against the backdrop of warmongering in India and Pakistan.