BBC News - Is Gujarat's red hot economy a myth?http://www.bbc.co.uk/news/world-asia-india-17919364[5/2/2012 4:12:52 PM]
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2 May 2012
Last updated at10:20 GMT
Is Gujarat's so-called red-hot economic growth a mythpeddled by the government of the controversial chiefminister Narendra Modi?
Mr Modi, who was blamed for not doing enough to stop thehorrific 2002 anti-Muslim riots in the state after the burningof a train carrying Hindu pilgrims, has modelled himself as ano-nonsense economic reformer leading one of India'sfastest-growing states.In March, a senior minister of his cabinet told me thatGujarat has been recording scorching double-digit growth,prompting even The Economist magazine to call it India'sGuangdong.
said Time magazinewhen it put him on the cover recently.But a raft of recent articles in the Indian media suggest thatthat Mr Modi's claims may be overblown.Examining data on the economic performance of Indianstates during a seven-year-period - 2004-11 - AK Bhattacharya, editor ofBusiness Standard, is
.He finds that its economy grew by 6.3% annually during this period, upfrom average growth every year of 3.6% - a relatively low base - in a 10-year period ending 2003.
More interestingly, states like Uttarkhand (13.2%), Bihar (10.9%),Maharashtra (10.7%), Tamil Nadu (10.4%) and Haryana (10.1%)recorded double-digit growth in the seven-year period under review.None of these states have the kind of hype associated with them as doesMr Modi's Gujarat, which is often called the most business friendly statein India.
Is Gujarat's red hot economy a myth?
Mr Modi has become synonymouswith Gujarat's growth