India’s jobs crisis & flaws in Gujarat model of development
Live MintClose relations between a robust business community and the state politicians, as well as the bureaucracy, crystallized at an early date in Gujarat. Years before Narendra Modi took over, the Gujarati economy was pushed forward very much by deliberate state interventions that resemble the interventions of the developmental state of East Asia, which means that Gujarat’s rapid economic growth was propelled by a close working alliance between the region’s political and economic elite. What has been publicized by the longest-serving chief minister as the “Gujarat model” benefitted first the large corporate houses. In the last page of his book Gujarat: Governance for Growth and Development, Bibek Debroy summarized the state’s economic policy as follows: “What is the Gujarat model then? Quest for good jobs However, by focusing on “megaprojects”, the “Gujarat model” has relied on big companies that have boosted the growth rate but have not created many good jobs, not only because the rules pertaining to job creation have been relaxed, as mentioned above, but also because big companies are very capital intensive.
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How well has the ‘Gujarat model of development’ fared?
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