M for Modi…M for Money?

A conclusive Modi victory has certainly created an upheaval within his party. The average BJP voter is certain to demand that he assume a larger national responsibility. The RSS believes Modi’s approach is too personalised and will contribute to a personality cult-based politics. Yet, even the RSS knows it can’t resist the tide for too long. For the moment, he is likely to resist enlarging his political sphere but in the long run, Modi’s transition to the national stage may well be inevitable.

Seldom has a state assembly election in India generated as much interest among the Indian Americans (NRG- Non Resident Gujarati) as the Gujarat polls have this time. Many of the Modi-supporters and members of pro-Hindutva groups in the US had gone to Gujarat to campaign for the BJP this time, while a group of NRIs had launched a pro-Modi campaign from the US by sending mass emails, booking full-page advertisements in newspapers and making mass telephone calls to their friends and relatives in Gujarat. The NRGs are ready to adopt villages and give funds to the state government, but they demand voting rights in parliamentary and assembly elections and they believe Modi will fight for them. Commercial capital is wary to enter a state governed by a man ‘seemingly’ prone to create social instability for political and ideological gain. Gujarat is desperate for this source of capital inflow, banking on positive feelings of NRGs on the fronts of good governance and development. Many NRGs realise this and did expect a change in Government based on anti-incumbency, but these were very few in number. It is this urge of the government to project itself as Business friendly, investor friendly, that gave rise to the Vibrant Gujarat summits concluded in 2003, 2005 and 2007.

Mr Modi, hailed as “Vikas Purush” has a few cards in his kitty to attract NRGs and investors for a long time.

• The new agriculture policy is designated to be innovative and modern.
• The 11 new ports expected to come up during the Eleventh Five-Year Plan period are expected to boost the economy further.
• The power plants in the pipeline will make Gujarat self-sufficient in this sector.
• The Modi Government’s steps like annual summer campaigns to enrol girl children to school, and a drive against female foeticide, besides the budgetary provisions to open employment exchanges exclusively for women.
• The Modi Government’s steps like annual summer campaigns to enrol girl children to school, and a drive against female foeticide, besides the budgetary provisions to open employment exchanges exclusively for women.
• Mr Modi organised nearly 20 women’s conventions across the State and a series of “Krishi Mahotsavas” (Agro-Festivals).
• He also initiated special English coaching facilities to make the Gujarati educated youth employable.

So we see that Modi is playing his cards well. Both for the resident Gujarati and the NRG.
Although Gujarat has always been business-friendly State, it was during the Modi regime that the fruits of the policies of economic liberalisation and globalisation became visible. Top companies such as Reliance, Adani and Essar have set up base in the state. Allowing corporate houses to set up projects even before clearing paper work has worked wonders. A recent RBI report said Gujarat ranked first in India with the proposed investments of $17.8 billion in 86 projects, comprising 25.8 per cent of the total investments of $69 billion received during 2007. More investments are likely to pour into the state if one considers the report prepared by Deutsche Bank recently that stated Gujarat offers the best investment potential among all the states and union territories in the country.

The gross domestic product growth in the state is 10.33 per cent, compared with 9 per cent for India as whole.
Industrial growth in India is a mere 11 per cent, while Gujarat has galloped ahead to 15 per cent.
Unlike growth rate of agriculture in other States at three to four per cent, Gujarat had a growth rate of more than 10 per cent in this sector.

As the most industrialized state Gujarat accounts for 20 per cent of the industrial output, 25 per cent of its textile production, 40 per cent of its pharmaceutical production and 47 per cent of its petrochemical production and 21 per cent of India's exports.
With these laurels to his side there are many down-sides to Modi’s mode of governance. Apart from the constant criticism he receives for being a mass murderer and communalist, there are flaws drawn out in the developmental model of Gujarat.

Gujarat's Total Debt is 24 BILLION dollars which is about 3 times the state's annual tax receipts. The annual interest on these debts alone is 25 % of the state's annual revenue. In the last 5 years the debt accrued is equal to what was accrued in the previous 50 years.
Narendrabhai Modi’s victory will be comforting news for the SEZ chapter as he plans to make Gujarat the SEZ capital of India and ensure that the state maintains a steady 12 per cent growth rate for the next five years. Farmers' protest against Reliance Special Economic Zones, have been tactically suppressed making the road smoother for 33 of the SEZ proposals in the state.
For the business-minded Gujarati M for Modi might be M for Money but we sure hope it does not turn into M for Menace and Misery!