Modi's Gujarat is No. 1 in economic freedom, MP fastest growing

Gujarat leads economic freedom index: West Bengal, Jharkhand and Bihar at the bottom

trithesh

Trithesh Nandan | January 9, 2013


Gujarat chief minister Narendra Modi
Gujarat chief minister Narendra Modi

Accolades for Gujarat chief minister Narendra Modi, who last month won third consecutive assembly elections, keep pouring in. The state has been ranked topper in the economic freedom index, according to a new report.

“Gujarat’s freedom index score has been rising fast, and at 0.64 it is now far ahead of second-placed Tamil Nadu (0.56),” notes the report, ‘Economic Freedom of the States of India 2012’, authored by Ashok Gulati, Bibek Debroy, Laveesh Bhandari, and Swaminathan S Anklesaria Aiyar.

The analysis of 20 states on the parameter of freedom index was released by former RBI governor and Rajya Sabha member Bimal Jalan in New Delhi on Tuesday. It states that other states have a long way go before they can catch up with Gujarat on this parameter. The index is based on the size of government, legal structure and regulation of labour and business.

“Gujarat serves as an example to other states in India which is lagging far behind. The agriculture growth is close to ten percent. It is a global success story. You don’t hear such story,” said Gulati, chairman, commission for agriculture costs & prices, ministry of agriculture.

According to the report, Gujarat has seen significant improvement in its regulation of labour and business index values and has retained its preeminent position. “The success is based on achievements in agriculture, social welfare programmers and water resource management,” the report notes.

Among other states

Meanwhile, Madhya Pradesh has registered the biggest jump, improving its rank from sixth to third position. Tamil Nadu, ranked number one in the 2009 freedom index, is now ranked in the second position.

Bihar’s impressive economic growth in the last four years has not helped it climb the freedom ranking. The state has maintained its last rank (20) since 2005 when the first economic freedom ratings were released. However the report appreciates that, “Despite its 20th rank in the current freedom index, Bihar has shown steady improvement in their index values and relative ranking – benefitted from economic growth without commensurate increase in the size of government.”

West Bengal, Jharkhand and Bihar are the bottom three in terms of economic freedom.

The report notes that Punjab is losing its economic leadership and steadily slipping behind other states. In the latest index, Punjab stands 12th, no change from the last time ranking in 2009. “Punjab’s relative decline can be traced to several factors, of which the most important is a serious fiscal crunch. This in turn is due mainly to the supply of free electricity to farmers. Other reasons include the agriculture plateau reached by the green revolution,” says the report.

The median score for economic freedom of all states, which had declined from 0.38 in 2005 to 0.36 in 2009, has improved substantially to 0.41 in 2011. States like Tamil Nadu, Chhattisgarh, Andhra Pradesh, Jharkhand, Maharashtra and Haryana have shown decline in index values compared to 2009. “This is worrisome as some of these states like Jharkhand and Maharashtra were among the poor performers in 2009 as well,” the report notes.   

Comments

 

Other News

An African salient

To counter Beijing’s aggressive agenda in the Indian Ocean, New Delhi is seeking to create strategic bastions in Mauritius, Seychelles and Madagascar. The immediate provocation was China’s inauguration of its first overseas military base in Djibouti, in the Horn of Africa.

Look who’s talking ethics in Karnataka?

 Just after the UP assembly election in 1996, I was among the scores of reporters waiting at Kalyan Singh’s residence, waiting to get the first inkling of the future course of the BJP. The party had secured the maximum seats – 174 out of 425 seats – but was short of the majority mark

Company secretaries are gatekeepers of corporate governance: SEBI Chairman

“Company Secretaries, once known as secretaries to the board and management, have transformed themselves into key managerial and governance professionals. Today they are recognised for their importance on corporate landscape and have become gatekeepers of corporate governance,” said Ajay Tyagi,

Will there be light at the end of the tunnel?

Any good news which promises to bring about qualitative improvement in the lives of people, especially in rural India, is always welcome. It was heartening indeed to learn that every single village in the country now has access to electricity, as announced by the prime minister on April 29. This is most ce

A dry run in Bundelkhand

The paved road, the few concrete houses and men on motorcycles – these are deceptive signs of development in Madralalpur village. Only a couple of weeks ago, Babu, a 47-year-old distressed farmer, had hanged himself from a babool tree. Villagers were gathered at his house as his wife, mother, sister-

Our jobs, their jobs

Statistics has come a long way from the time when British prime minister Benjamin Disraeli observed: “There are three kinds of lies: lies, damned lies, and statistics.” Statistics is now an accredited branch of applied mathematics; statistical methods are routinely used to prove or disprove the

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter