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6) The Gujarat model which focuses on megaprojects at the expense of SMEs is not the solution for India. Critically analyze.(250 words)

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Topic-  Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

6) The Gujarat model which focuses on megaprojects at the expense of SMEs is not the solution for India. Critically analyze.(250 words)

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Why this question

The plan to introduce reservation in jobs for economically weaker sections of the upper castes in India points out the growing concerns about employment growth in India. In this context it is important to analyze the Gujarat model of development and see whether it offers the required solutions.

Directive word

Critically analyze-  here we have to examine methodically the structure or nature of the topic by separating it into component parts, and present them as a whole in a summary. based on our discussion we have to form a concluding opinion on the issue.

Key demand of the question.

The question wants us to dig deep into the Gujarat model of development and bring forth its positive as well as negative points. Based on our discussion we have to form an opinion on whether this model should be emulated across India, given the present pressing concerns of the economy.

Structure of the answer

Introduction– write a few introductory lines about the  Gujarat model of development. E.g mention what exactly it refers to- which period of Gujarat story it relates to and mention that it is being hailed as role model for other states to emulate.

Body-

  1. Discuss the positive points of Gujarat model. E.g It ensured a high growth rate and attracted foreign investment; It led to substantial economic growth of the state and created a positive business friendly image among the investors; It made governance simpler and business easy to be done; A large number of industries were exempted from obtaining No-Objection Certificate (NOC) from the Pollution Control Board. They were allowed relatively easy and quick possession of land through the ‘urgency’ clause, as well as a simplification of the administrative processes to release agricultural land for industrial use etc.
  2. Discuss the flaws in such model. E.g  it was more about business-friendliness than market-friendliness, as evident from the non-market prices some companies paid for their land. While market-friendly economies minimize interventions by the state, in business-friendly economies, politicians (and “their” bureaucracies) intervene in favour of the companies they seek to favour; by focusing on “mega-projects”, 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 etc.
  3. Discuss the importance of job creation for India and link it with people’s agitations, recent reservation plans for economically weaker higher castes etc.

Conclusion– based on your discussion, form a fair and a balanced conclusion on the given issue.