"Close relations between a robust business community and the state politicians, as well as the bureaucracy, crystallized at an early date in Gujarat," wrote Prof C Jaffrelot. "Modi's economic policy in 2000s gave a new dimension to this business friendliness. What has been publicized by the longest-serving chief minister (2001-14) as the 'Gujarat model' benefited first the large corporate houses." "It targeted not only the 'prestigious units' (Rs 3 billion and more since 1991), but even more the 'megaprojects' that implied Rs 10 billion and more investment in projects, and direct employment of two thousand persons -- hence a ratio of Rs 500,000 per job." So, how successful was this model? In 2017, only 53.8% of households had a TV, only 8.8% of people had a computer, 44.6% of children under 5 were suffering from malnutrition and a poor sex ratio of 886 girls to 1000 boys at birth, wrote R Nair. "Gujarat spends less than 2% of its income on education (the norm is 5-6%) with the result that 45% workers in Gujarat are illiterate or studied up to the fifth standard with the quality of education very poor. The quality of higher education is also resulting in the rising number of unemployed engineers and science graduates," wrote Prof I Hirway. High level of rural poverty was confirmed when the present Chief Minister waived Rs 6.25 billion of electricity bills of rural users. Modi organized 'Vibrant Gujarat' meetings to draw investment to the state. "While Modi had not attracted many foreign investors (only 4.5% of FDI went to the state from 2000 to 2012, as against 32.8% in Maharashtra, 19% in Delhi, 5.6% in Karnataka, 5.2% in Tamil Nadu, and 4% Andhra Pradesh), he has been very popular among Indian businessmen." Because he allotted land, forcibly acquired from farmers, for industries at throwaway prices. Those who benefited from his friendship became billionaires, and were naturally grateful. Concentrating on mega projects drew funds away from micro, small, and medium enterprises (MSMEs) with the result that "Between 2004 and 2014, 60,000 MSMEs shut down in Gujarat." "According to the report of the National Sample Survey of 2011, Gujarat has some of the lowest average daily wages for casual labourers in the urban area." Modi's policies have brought the 'Gujarat Model' to the nation. Although the economy is growing at over 7% India is not creating enough jobs, said former Governor of the Reserve Bank Raghuram Rajan. Modi's desperation to win general elections in May is going to prove too costly for the country, wrote M Sharma. Prescient, because the RBI is to pay a ransom of Rs 400 billion to spend on handouts to the vote bank. The Gujarat Model is a one way ticket to bankruptcy.
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