Gujarat gives us a classic example how growth and development are two very different concepts. While it is beyond doubt to claim that violence and conflict of any sort reduces the overall welfare of a society, growth may not necessarily reflect increasing well-being. Gujarat, a predominantly Hindu state, after the 2002 riots, in which the Muslim minority was targeted by the Hindu majority, allegedly with active state support, has been identified with religious extremism. But when we look at the economics of Gujarat, post Godhra (incident that preceded the riots), we find that Gujarat has done extremely well in terms economic indicators. In the 2000s, Indian economy entered its high growth phase, and Gujarat with its large industrial, financial and infrastructure base, access to sea, and a large skilled workforce was highly suited to benefit from these opportunities. Apart from these, Gujarat has also been known to have a relatively efficient bureaucracy. The
combination of base conditions, an efficient bureaucracy, and a CM willing to circumvent standard rules, regulations and procedures paid dividends rather quickly. Within a year or so, Gujarat’s GDP growth took off, to higher than national GDP growth. Investments took off, the speed with which approvals were received accelerated, the delays that typically characterize large investments reduced dramatically. And this was sustained for the following years. There are many stories in the informal circuit on how the government aggressively wooed the investors, circumvented procedures, pressured antagonistic pressure groups, to ensure rapid investments. Economic Growth is only one story. After Narendra Modi came to power, post riots, Gujarat has seen growth in Agriculture too, especially in cotton production
By all accounts, elections are not won or lost due to improvements in the social sector. But here as well the Modi government came up with a simple yet powerful innovation. Many women and children in Gujarat (as in other states) are highly under- nourished. The Central government adopted the mid-day meal scheme in primary schools and implemented it at the all-India level. But the mid-day meal typically consists of nutrients rich in carbohydrates and to a lesser extent proteins. A large part of the under- nutrition in children is however due to the lack of micronutrients in their diet, and women and children not in the school-going age do not benefit from the mid-day meal. Consequently wheat flour supplied through the PDS is fortified with iron and folic acid. Moreover vitamins are mixed in edible oils. As a result, reportedly, the number of women and children suffering from anaemia has reduced considerably in less than two years of the scheme’s operation, and reduced night blindness and other malnutrition-related diseases.
We see that Narendra Modi not only worked where he could attract votes, but also in other areas of development. One theory is that, post riots, it was a conscious effort on the part of the Govt. to perform its basic functions efficiently so that when the elections come next, Modi gets more points as a reformer than brickbats as a mass- murderer. So Religion again plays a political role here. Whether the riots were staged for electoral goals is still a speculation, but its economic effects are undoubtedly positive.