— Narendra Modi,
Chief Minister of Gujarat
Mr. Modi, India Inc. prefers
you as CEO of Gujarat
rather than as Chief Minister
of the state. How do
you react to this corporate tag?
I do not consider myself as the
'CEO' of any state. People have
been using this corporate tag for me
but I feel that any 'CEO' just has to
look after his company's good.
However, I don't look only at my
government's good. I look after the
welfare of the people of my state.
I dream of a Gujarat which works
for the upliftment of the common
man, builds a strong platform for
good governance, ushers in
innovation, involves ordinary
people in decision making, and
bridges the divide between the
developed nations and us. This
has been my prime motivation
and I have spent every day to
turn this dream into a reality.
And obviously, I am more
accountable than any CEO. My
office has been certified with an
ISO 9001:2008 which justifies the
efforts we put in continuously providing
transparent, efficient, effective
and good governance as per
the expectations and aspirations of
the citizens, bringing about an
exemplary work culture.
Gujarat has registered over 10
per cent growth on average in the
past five years. What do you
attribute this growth to?
Political stability, good governance,
sound infrastructure and
labour peace are the primary reasons
behind Gujarat's consistent
high growth. Today, Gujarat is the
industrial and corporate face of
the country. You would have seen
the amount of interest we have
been generating from all over the
world. This has not happened
overnight; this is the result of a
decade of hard work and longterm
planning. However, there
isn't one simple reason for our
success: a number of factors are
behind it.
In Gujarat, strong economic
credentials are supported by an
accelerated reforms process. We
have in the last decade focused
on infrastructural development,
proactive governance, building
quality manpower and creating
an innovative platform to do
business. Anyone who comes to
Gujarat is impressed not only by
our world-class roads but also by
many other feats like non-stop
quality electricity in each and
every village in the state. Eyes of
my colleagues from other countries
widen when I tell them we
have recorded an average annual
growth rate of 10.4 per cent in the
last five years. Our contribution
alone in India's exports is close to
22 per cent and overall contribution
to India's manufacturing
sector is around 27 per cent.
We are determined to provide a
business-friendly regulatory
environment. That includes simplification
of procedures, the creation
of online investor support
software, a rigorous investment
monitoring system and a land
bank. No wonder then Gujarat
tops the nation as the most preferred
investment destination as
per a recent Assocham study.
Strong fundamentals: The truth
is Gujarat's fundamentals are
strong. They are strong not in a particular
sector but across all the economic
sectors. People are a part of
the everyday progress. Governance
in the state has been marked by a
professional approach. And it is
also supported by an effective
grievance redressal system. Officers
who are involved in bringing
investment to the state also bring a
great sense of accountability to
their work.
Gujarat is a place where infrastructure
development has kept
pace with economic growth.
Gujarat is a place where rural
development has kept pace with
urban growth. The satisfaction of
workers has kept pace with industrial
growth. For the past one
decade, Gujarat has dreamt and
Gujarat has delivered.
What lessons can other states
learn from Gujarat's experience?
There is no magical secret behind
Gujarat's success. There is dedication.
There is commitment.
There is hard work and inspiration.
There is strong political will,
futuristic vision, robust infrastructure,
quick decision-making,
industrial peace and progressive
government policies. We in
the Government of Gujarat are
committed to make our vision a
reality - to make Gujarat a globally
preferred place to live in and to
do business through accelerated
yet balanced, inclusive and sustainable
growth underpinned by a
robust social, industrial and physical
infrastructure.
We have made a very simple
promise to all who wish to invest in
Gujarat. We promise an environment
that minimises red tape and
enables business. We promise a
land where an investor comes with
a dream, sows an idea, and witnesses
the idea growing into a
flourishing business in record time.
It is this promise that brought Tata
Nano to Gujarat and we gave them
a clearance within three days. Our
quick decision-making has time
and again paid us rich dividends
and in this case propelled us to
becoming India's Auto Hub.
Foremost in infrastructure:
Today, Gujarat ranks foremost in
infrastructure and is also the petrochemicals
capital of the country. If
other states can level up their basic
infrastructure for investors, I am
sure the investments will come to
each and every Indian state.
Gujarat's multifaceted growth and
excellence has been recognised not
only in the country but also in the
entire world. This is because we
work with people. We work holistically
and strengthen the entire
value chain. People's participation
is not simply a component of good governance but the main aspect of
democratic good governance.
Gujarat has understood this well
and this has been the driving force
behind its overall success.
Which critical sectors is your government
most likely to focus on in
coming months?
Gujarat's formula for balanced
economic success is to avoid
overdependence on any sector. We
have evolved a three-part development
model for Gujarat: one-third
industry, one-third services sector,
and one-third agriculture. If there
is a balanced development in all
three, the state economy can never
slow down. This has been our philosophy
for overall growth.
Keeping this in mind, we have
identified some critical sectors
to boost growth in the near
future. Manufacturing, which
includes engineering, auto,
gems and jewelry, textiles, pharmaceuticals
and chemicals will
receive strong attention.
Sustainable development: With
rising urbanisation, sustainable
development will form the backbone
of our growth strategy. Urban
development, infrastructure development,
healthcare, water recycling
and treatment, renewable
energy and technology will be some
of the key sectors. Gujarat's ports
will continue to be launch pads of
Indian enterprise and so ports,
shipbuilding and associated industries
will also be focused upon.
I strongly believe that the quality
of education today decides the
tomorrow of Gujarat. My dream is
to make Gujarat the knowledge hub
of India. Hence, knowledge sector
and innovation has been given
prime importance in our future
plans. In agriculture, we want to
create a post-harvest agriculture
infrastructure to ensure better
access to markets. Thus, agribusiness
and food processing will also
feature in our future plans.
Going forward, have you set
any higher targets for
industrial growth?
India's manufacturing sector's
contribution to GDP is 16 per
cent, of which Gujarat contributes
27 per cent to the manufacturing
sector and we have a
strong manufacturing base with
robust infrastructure facilities.
We have now set our sights on
achieving higher targets.
The state government has
planned to increase the manufacturing
sector's contribution and
we are coming up with a revised
state manufacturing policy that
will determine the road map for
achieving the higher industrial
growth target. Robust infrastructure,
progressive reforms, responsive
governance and an environment
that enables business have
been the key drivers behind
Gujarat's rapid industrial growth.
These will be an integral part of
our future plans too.
Significance of MSMEs: We
welcome not only the Tatas and
Ambanis but also micro, small
and medium industry. We recognise
the significance of MSMEs
which could be seen in the recent
Vibrant Gujarat Global Investor's
Summit 2011 where a lion's share
of MoUs (54 per cent) were
signed in the MSME segment, in
turn generating employment for
thousands of unskilled, semiskilled
and skilled workers.
Reforms like improving credit
flows, skills, access to raw materials
and markets and rationalising
regulations provide impetus to
MSMEs and manufacturing as a
whole. We will bring in further
reforms in this segment too.
My government is strongly committed
to the rapid industrial development
of Gujarat for the rapid
industrial growth of India.
Gujarat's share of urban population
is 37.36 per cent compared to
27.78 per cent nationwide. Higher
urban population poses challenges
to transportation, sewage
and water infrastructure.
Urban areas contribute significantly
to the state economy both
in manufacturing and services
sectors. Latest census results
show that the share of urban population
in Gujarat has augmented
from 37.36 per cent to 42.6 per
cent. Hence, urban planning is of
prime importance for my state.
We have made various interventions
to create better infrastructure
facilities in municipalities over the
last decade. In 2009, we launched
the Swarnim Jayanti Mukhya
Mantri Shehari Vikas Yojana for
inclusive development of municipalities
with an overall outlay of
7,000 crore. All major sectors such
as water supply, sewerage and
drainage, roads and bridges, solid
waste management, renovation of
heritage buildings, and conservation
of water bodies have been covered
under this holistic scheme.
Transport systems: With
increasing urbanisation, we
have also paid special attention
to building efficient transport
systems. The bus rapid transit
system in our cities is an excellent
example of this. This initiative
has already won the Global
Sustainable Transport Award in
2010 and has revolutionised
urban lives in Gujarat.
Work has also begun on the
Ahmedabad- Gandhinagar
metro project. Besides, we have
envisaged the replacement of
conventional fuels by CNG in all
buses and autorickshaws.
It is imperative to not ignore
the demands of rising urbanisation.
Hence, development
around the rivers Sabarmati and
Tapi has been undertaken to
revitalise the city and improve
existing infrastructure. Water
harvesting systems are also
being encouraged in order to
secure the needs of the future.
These are just a few of the concrete
steps that we have envisioned and
taken to keep Gujarat at pace with
rapid urbanisation.
Gujarat ranks third in total
installed power capacity in India
and offers uninterrupted power
supply. What are your future
plans in the power sector?
In 2001, when I came to power, the
state was facing a shortfall of nearly
2,000 MW. People used to come
and request that there should be
power supply at least during the
dinner time. The situation has
changed: from power deficit we
are a power surplus state today.
We currently have 4,000 MW of
excess power and within a year
or so we expect to have 7,000 MW
of surplus power that will help
eradicate the darkness in the
entire country.
Today, we have not just added
megawatts to our electric generation,
we have transformed lives in
our rural areas by providing uninterrupted
24x7 quality power to all
the households of Gujarat under
the Jyotigram Yojana. The smiles
are back on the farms too as eight
hours of dedicated quality power
is being provided to agriculture
consumers from dedicated agriculture
feeders. This has transformed
the villages and made life
comfortable and what is more
important ensured rapid development
of small and cottage industries,
agro processing industries.
Renewable energy: We have
recognised the adverse impact of
climate change due to global
warming and thus have formulated
an integrated energy policy
emphasising on green and clean
energy. I strongly believe renewable
energy is the energy of the
future and we are committed to
create a conducive environment
for setting up of renewable energy
based power projects.
Today, the installed capacity of
wind generation has reached to
2,560 MW and solar power has
reached to 600 MW. This capacity
is planned to be increased further
up to 5,000 MW for wind and
2,000 MW for solar by the end of
next five-year plan.
We are also planning for a manufacturing
policy for solar power
and other renewable energy
equipment in order to attract further
investments to the sector. My
government is committed to
establishing Gujarat as the
Renewable Energy Capital and
we will come out with the new
conducive policies from time to
time for maximum utilization of
renewable potential.
With the longest coastline in
India, what are your plans for
developing port and related
infrastructure?
Currently, about 95 per cent of
India's foreign trade (in volume)
and 70 per cent (in value) is carried
through sea routes. Billions of
rupees worth of infrastructure has
been created to cater to this industry
in India. Gujarat has been the
leader in this sector and we
already carry almost 35 per cent of
India's sea cargo.
Our vision is to achieve maritime
excellence by port-related
development of the entire coastline
of Gujarat. Over the last
decade, we built world-class port
facilities in the state like the country's
first dedicated chemical terminal
at Dahej in 2001, the first
PPP rail link in the country
(Pipavav, 2003), and first doublestack
container train (Pipavav,
2006). India's largest coal terminal
was established for ultra mega
power plant in 2010 at Mundra;
and the country's most advanced
vessel traffic management system
in 2010.
We intend to continue being the
frontrunner in port-led development
of the state. Early this year,
we laid the foundation for the Ro-
Ro service between Dahej and
Gogha. When completed, this will
be India's first world class ferry
service, and will reduce the traveling
distance between south
Gujarat and Saurashtra from 380
km by road to 31 km by sea, and be
environment friendly as well.
The Gujarat government is
developing new greenfield ports
at Chhara, Kachchigadh, Dahej,
Nargol and Mahuva in conjunction
with private developers.
Additionally, ports are also
planned at Vansi-Borsi, Modhwa
and Bedi. To showcase port-led
development, we have decided to
develop Mundra and Pipavav as
model port cities.
Shipbuilding: Another thrust
area for the government is development
of shipbuilding capabilities
in the state. Gujarat has a
share of 60 per cent in Indian shipbuilding
order book and Gujarat
intends to grow this share. For this
purpose, the Government of
Gujarat came out with the first
shipbuilding policy of the country
in 2010. Under the policy, Gujarat
will develop integrated clusters of
shipyards (MSPs). The MSPs will
provide common seaside as well
as shore-side infrastructure and
facilities. The government has
identified Dahej and Bhavnagar
in the initial phase and subsequently
at other new greenfield
locations like Adri, Dari, Khara,
Kaswa, Chachchi etc.
At the same time, we have
encouraged integrated coastal
development particularly of the
coastal communities. We have
launched an ambitious programme
called SagarkheduYojna
for all round development of our
coastal belts.
Investments in world-class railroad
pipeline infrastructure linking
the coastline have helped
Gujarat's ports dominate India's
maritime scenario. But the development
of the communities in the
coastal regions is the key to the
peace and prosperity of Gujarat's
port-based transactions.
Gujarat ranks No.1 in terms of
total area under SEZ. What is the
impact of these SEZs on overall
development of the state?
SEZs are engines of growth and
Gujarat is a leading SEZ state
with the highest geographical
area of 29,424 hectares under SEZ
development. We are also the first
state to formulate an SEZ policy
that includes flexible labour laws
and exit options for investors. The
recent Vibrant Gujarat Global
Investors' Summit witnessed massive
investments in these SEZs
and since most of these SEZs are
manufacturing driven, they offer
tremendous employment generation
potential.
We will soon have many more
fully operational SEZs. The sectors
covered include IT/ITeS,
engineering, power, textiles and
apparels, multi-product and nonconventional
energy. In 2009-
2010, SEZs in the state contributed
a massive
99,481 crore
($19,896 million) worth of physical
export.
What measures have you taken
on the environment front?
I firmly believe that today environmental
issues cannot be neglected.
For a growing economy
like Gujarat, development is a
given. But dedicated efforts
need to be taken to ensure sustainable
development. Gujarat
has taken a number of pioneering
initiatives to combat the rising
environmental concerns. We
are India's first and the world's
fourth government to have started
a separate department for climate
change and are the highest
carbon credit earning state in
the country.
Green energy: We have also
emerged as a leader of India's
future energy programme with
green energy becoming one of
our focus sectors. We are the first
state in the country to possess an
independent policy on solar
energy (Surya UrjaNeeti) and
wind energy (PawanUrjaNeeti).
Asia's largest solar park in
Banaskantha is set to change the
face of North Gujarat. Gujarat is
surely set to be the solar capital
of the world and such initiatives
will go a long way in meeting the
energy demands of the future.
Wind energy has been another
focus area where Gujarat has
powered ahead with a a record
capacity of 2,176 MW generated
as against recorded capacity of
1,725 MW, 1,525 MW, 191 MW
and 35 MW produced by Karnataka,
Rajasthan, Andhra Pradesh
and Kerala, respectively.
Gujarat's upcoming smart cities
are taking the eco-friendly route
too. For example, Gujarat International
Finance Tech (GIFT) City
will use the energy-efficient district
cooling system instead of airconditioning.
It will also use an
automated waste collection system
that sucks away garbage from
buildings at high speed. Automated
waste collection can be combined
with biomass energy generation
systems, so GIFT will burn
waste to generate energy. Isn't this
a fine specimen of sustainable
infrastructural development?
One person alone cannot plant
the seeds for a greener planet. It is
our collective responsibility to
fight for a greener, safer and a
more sustainable future.
Over 7 lakh students graduate in
Gujarat every year. What are the
initiatives for providing job-oriented
training, especially in ITIs
and vocational courses?
If India has to emerge as 'Vishwa
Guru' and emerge as a global
superpower, then effectively utilisation
of its young demographic
dividend is a must. By invigorating
our talent pool, in one decade
Gujarat's youth will be the engine
of growth not just for India, but
also for the world.
We have already begun well.
Gujarat is the leading state in the
country for the seventh consecutive
year in providing employment.
We have specially focused
on providing skill-specific vocational
educational facilities to
meet the requirement of industry
in a specific area, thus generating
employment opportunities in
local areas.
Over the last decade, my government
has taken a number of
initiatives from skill building to
improving higher education to
providing right education and
improving the employability of
our youth. Just 10 years ago, in
2001 we had only 11 universities.
Today, we have 41 universities.
I am happy to tell you that,
while Gujarat provides nearly 72
per cent of the total employment,
all the other states put together
provide only 28 per cent. But we
are aware that the flow of investment
in Gujarat and global competition
would require more
skilled people in future.