[Reader-list] Gujarat -Why No 1 state in India ?

[Rakesh Iyer]

My response:

Link:
http://www.thehindubusinessline.com/2009/02/26/stories/2009022650711900.htm
*
Gujarat economy sustains growth; human development index falls *

*Our Bureau *

Ahmedabad, Feb. 25

The economy of Gujarat is sustaining an overall growth rate of eight
percentage points, but the incidence of rural poverty declined at the annual
rate of 0.23 per cent, which is the worst Human Development Index (HDI)
improvement record among all states.

“The economy is growing at a rapid pace but the Human Development Index of
the state is falling. It means that there is a mismatch somewhere,” said
Professor Indira Hirway, Director and Professor of Economics at the Center
for Development Alternatives. She was speaking at the Gujarat Annual Day
event organised by Confederation of Indian Industry.

According to the Planning Commission, incidence of rural poverty in Gujarat
declined by 2.8 per cent during 1993 to 2005 as against 8.5 per cent in
India during the same period. Meanwhile, the incidence of poverty in tribal
areas in Gujarat increased during the same period. The rural per capita
income in the State is half of the urban income.

Urban poverty declined at an annual rate of 1.58 per cent, but it only
reflects calorie consumption and not the poor quality of life rapidly
increasing in the urban slums, which is reflected in the HDI, said Prof
Hirway.

>From 1996 to 2006, Gujarat slipped one rank each in education and health
indices to eight and tenth positions, respectively, as compared to 20 other
states. In improvement in Infant Mortality Rate, it ranked 13th. The state
ranked 14th in Child Mortality Rate, 13th in TMR, 17th in stunted children
and ninth in underweight children.
 Unemployment

Though Gujarat employs 6.4 per cent of the total employable workforce of
India, the rate of unemployment is high. Growth of employment has happened
in the unorganised sector, which is unprotected in a quickly globalising
scenario where it is open to volatility of the fluctuating global market.

“Exports are good, but globalisation for the sake of globalisation is
harmful. It should be done in a way to create more employment opportunities.
This shows that the growth in the State is primarily a capital intensive one
and not employment generative,” she said.