Replicating that experience across a diverse country of 1.2 billion would be a tougher prospect for Narendra Modi, whose leadership of booming Gujarat state has led to his being touted as a potential candidate to become India's next prime minister.
While Modi wins praise even from critics for cutting red tape and making government more responsive and predictable, many ingredients for Gujarat's run of growth were in place well before he took office in 2001.
"It is like an icing on cake sort of thing. You have a nice cake and Modi has done a lot of good icing," said Rakesh Chaudhary, director of Pratibha Group, a textile manufacturer in Palsana on the outskirts of the Gujarat city of Surat. Industry in Gujarat is helped by a long coastline and plenty of barren land that is easy to turn over to factory use.
The power that comes from a long-standing and heavy majority for his Bharatiya Janata Party (BJP) in the state also gives Modi an advantage that he would not enjoy on a national stage marked by fractious coalition politics.
Despite a controversial past - Modi is accused by critics of not doing enough to stop or of even quietly encouraging religious riots in 2002 that saw as many as 2,000 killed, most of them Muslims - he has established a reputation as an economic reformer in part by building on the strengths of Gujarat and marketing them heavily. Modi's marketing savvy, aided by the Washington lobbying and public affairs firm APCO Worldwide, will be on display at the biennial "Vibrant Gujarat Summit" that begins on Friday.
Initiated by Modi in 2003 to attract investment after the violence and an earthquake in 2001, the event is attended by thousands of corporate officials who pledge billions in investment, although in reality only a fraction has seen the light of day. Of 12.4 trillion rupees ($225 billion) in investment proposed at the 2009 event, just 8.5 percent had been spent as of November 2011, according to state government data.
"Under Modi's regime, there has been significant improvement in infrastructure growth, significant improvement in industrialisation, as well as agriculture," said Jahangir Aziz, senior Asia economist at JPMorgan. "But what has been overplayed is initial conditions were actually pretty decent in Gujarat."
The stocky Modi, who favours traditional Indian attire and a clipped white beard, plays down any prime ministerial ambitions. But his popularity in Gujarat - the BJP won 115 of the state assembly's 182 seats in a December election - has fuelled speculation that he could lead his Hindu nationalist party in 2014 against India's ruling Congress party, which has been beset by corruption scandals and overseen a sharp economic slowdown.
"His economic record in Gujarat is obviously something which matters a lot to the middle classes. That, coupled with strong leadership," said Swapan Dasgupta, an analyst with links to the BJP who expects Modi to be the party standard-bearer in 2014.
Critics say that while Modi has indeed encouraged investment and helped bring reliable electricity and law and order, double-digit growth has not been shared broadly enough.
In the five years through March 2010, some states - including Tamil Nadu and Karnataka - did better at bringing down poverty levels. "Big business people get a lot from the government and scheduled caste people (minorities) get a lot, but people like us who are in between get nothing," said Bhupendra Thakkar, 50, who earns 6,000 rupees ($109) a month selling fruit near Surat's decrepit railway station.
FRIEND OF BUSINESS
Modi lured Tata Motors to the state in 2008 after the company's plans to build a factory for its low-cost Nano car were thwarted by farmers in West Bengal. Ford Motor Co and Maruti Suzuki are also building plants in the western state – high profile investments that carry the added benefit of acting as marketing tools.
In the seven years through March 2011, Gujarat's economy grew an annual 10.08 percent at constant prices, against 6.45 percent in the eight years through March 2002 (Modi took office in October 2001), which was still ahead of the all-India average of 6.16 percent. A handful of states, including Maharashtra and Tamil Nadu, clocked bigger gains over the same recent period.
By comparison, policy gridlock at the national level has contributed to a drop-off in corporate investment, putting India on track to record its slowest annual growth rate in a decade.
Accustomed to getting his way, Modi, 62, could struggle to negotiate the coalition politics that have become the norm at the national level and have hindered attempts at reform by Prime Minister Manmohan Singh's Congress-led administration. "Policymaking has benefited from the fact that the BJP has had absolute majority in the state legislature - an advantage it certainly will not enjoy in the federal parliament," said
Anjalika Bardalai, an analyst with the Eurasia Group in London. Modi has also been able to leverage the business acumen of Gujaratis, a group that has long been known for trading and entrepreneurship and includes a prosperous global diaspora as well as billionaires such as Adani Group chief Gautam Adani and Mukesh Ambani, who controls Reliance Industries, India's most valuable company.
"Modi might not be as successful as he has been here because the business mentality is unique to Gujarat," said Chandrakant Sanghavi, chairman of Sanghavi Exports International, a diamond trader and processor. "It could be prevalent in other states but the ratio may be less."
not only to say vibrant gujrat,we should also embellish narender modi with the tilte vibrant modi thus judging his willforce to act for the benefit of our country.Persons who are accusing him a communal,either being biased by dirty minded politicians,or dishonoring the dignity of our highest judiciary,the supreme court of India. Did our number of dirty politicians even ever think to create half the number of employment opportunities that provided by modi? of course,modi never bypassed regulations of our constitution,unlike a few selfish politicians,for allowing reservation on religious basis.Mind it, Mr. Narendra Modi is the only person who can show an widest path for our future generation.
It is an excellent, interesting and factual article. There is a valid point in the article "whatever is applicable for a state is not necessary for a population of 1.2 billion". It is also true that "Gujarat's run of growth were in place well before Modi took office in 2001". Modi is accused by critics of not doing enough to stop or of even quietly encouraging religious riots in 2002 that saw as many as 2,000 killed,
WHY PUTTING WHEEL BEFORE CART? MORE COULD BE EXPECTED FROM IE, AS MOTILAL VORA IS PAYING OUT TOO MUCH !!
Fist they wrote idiotic news with head and brain apart; now they come with even more gloriously stupid article. Read it yourself the dork who wrote it and see .... it actually proves Mr Modi has done not just great but incredible. IE is not far from becoming INDIA TV of print media.... they will soon be reporting current baba and ailens who abducted Himesh. I really wish google stop showcasing IE news on the news page.
This is article is preparation of election 2014. Now series of such articles will appear criticizing Shri Narendra Modi. About Vibrant Gujarat's investment figures since 2003 till date and direct investment actually came in Gujarat needs reality check. The actual investments rose from 34,686 crore in 2003 to 53,932 crore in 2005 to 1,63,866 crore in 2007 to 1,87,089 crore in 2009. Are these numbers a small feat? Now if we add up the direct investments received outside Vibrant Summits and that under implementation, the figure that we get is a staggering 12,21,468 Crore. The Vibrant Gujarat Summit 2013 appears set to break all records in terms of MOUs, investments, ideas, innovations and entrepreneurship! Media is not reporting events happening at Vibrant Summit now on at Gujarat even 1 %. Actually media should run several stories of happenings there so that let other States and Central Government learn few lessons in Good Governance from the State of Gujarat.
WHAT A SHAME U DONT EVEN HAVE UR ARTICLE U JUST COPIED IT FROM IN.REUTERS.COM....
That CM Narendra Modi has done a competent job of attracting investments into Gujarat is beyond any doubt. The cribbing is basically on the point whether Mr Modi can replicate this model across India. Why not? What have the other worthies including the PM who is a renowned economist done in this regard? Why doubt Mr Modi%u2019s ability before they have been put to a test? This only goes to show that there is a concerted effort to create a perception in the minds of the Indian citizens without a credible basis. One often wonders why the media print and electronic have not highlighted the excellent work being done by Mr Modi which can set a similar example for other States, in fact a good idea would be to create a competitive streak amongst other States. After all it will only benefit India. What is surprising is that The Indian Express website has gone overboard by posting the Reuters report analysing CM Narendra Modi%u2019s development plans at three places. (i) under Business, (ii) under India News and (iii) in the City News under Ahmedabad. It is as if your esteemed paper is trying to impress upon all its readers that come what may Mr Modi must not be allowed to succeed in his mission to bring all inclusive development. One fully understands the electronic media and select print media which has unleashed a vicious campaign against Mr Modi, but hardly expected from one of the few sane voices The Indian Express.
I dont see the point here. The article is dismissive of modi based on the author's assumption that the gujarat model is what will be replicated across India. All the limitations listed for Modi will be applicable to anybody who will become PM. The point about Modi is that he uses the mandate to do good for people while tapping the potential of his voters. Instead of appreciating that the article seeks to denounce Modi and argues how he cannot do good for India. Myopic is the one word i could think of after reading this article.
Dear IE, It is frustrating to see this article. You must end your sinister campaign against Mr. Modi and his government. You always talk about the entrepreneurship of Gujaratis but never give any credit to Mr. Modi who created a healthy business environment to attract companies. And with companies came thousands of jobs that brought money to homes as well as peace to society. People from all over India are getting jobs there according to their skills and interests but don%u2019t you see what is happening in other states like Uttar Pradesh, Rajasthan, and Bengal. Time will tell whether Mr. Modi will become Prime Minister or not but if his efforts are making Gujarat prosperous and financially healthy I think it is high time to end your grudge against Mr. Modi.
Cost of buying one paid article nowadays is one Johny Walker Black Label and one girl for a night
I have been going to gujarat on a business for many years. Pre modi everything was messy.Roads were horrible, pollution was terrible and there was no water. Now a see a big difference. I can tell you for sure it is because of Modi/Modi & Modi. Shame on the journalisum,who writes article based on how much they get paid!! This way we Indians will never make progress & will always be third class country. Please donot sell your moral,journalistic fairness for few bottles of whisky and few lakhs rupees in your pocket!! Your future generation will not forgive you !!!
A decisive leader with political will can achieve wonders. He has done it and will continue to do it. Weather India elects him as a PM or not, only future will tell. But I can predict with 100% confidence that his rule has laid a strong foundation for Gujarat's growth. Growth can never be exclusive, it spread like wildfire. And it will reduce poverty substantially in future.
Modis magic works on india or not but it has certainly works on english media.I throughly enjoy the frustation of so called secularists.Keep it up as your doubts are providing tonic to modi.
This is the best model suitable for all India but the fact of the matter is that you jurno along with congress are not ready to make India grow as far as your claim that Gujarat was already a growing economy since 2001 then why there is change of leadership and second it is very difficult to give growth to the economy whichn is on high trajectory rather than to those who are underdeveloped.
Its like giving a gold medal to grand father of a winner, stating the winner gained those winning attributes and traits from his grand father.( That would make a great joke?) Seems Newspapers and people go all way discrediting the success, and all these happen for small monetary gains?. Its really disgusting to hear all these arguments. Newspapers are supposed to give news alone. Nowadays Views are more than News.
In spite of enormous bashing from the commentators for his/its Anti-Modi bias unjust attitude which is in fact killing the journalism in India,this Media-House and its Editor(Both seem to be purchased by Congress) are not interested to stop their venomous Anti-Gujarat and Anti-Hindu Communal publishing as a news-trader.It seems their intention is to widen the rift between the two communities to serve Congress-interest.It is high time Indians do not fall a prey to this politically motivated poison and boycott its purchase.It is shameful and even Namakharami to try to widen the rift among Gujaratis even though earning bread thro' its own publication in Gujarat.It's a betrayal to hammer 2002 riots with a try to shelter one-sided riots of 1984 and Bhopal-tragedy business of Congress as if it is done in its collaboration with Congress.
Enterpranuers have always been there in Gujarat, then why did they not suceed in the past? The idea is not if Modi's policy would work if he was a PM. The question should be is there anyone better than Modi to be the PM?
OK; so ask the people not to support him for PM; is this what you want to convey? Go ahead IE.