Gujarat model
Economic Reforms and Development Strategy in Gujarat
-Ravindra H. Dholakia
Abstract
[The paper examines the development strategy followed by Gujarat state government during the nineties. It has followed the strategy focussed on industrialisation and urbanisation with an open door policy eversince its inception in 1960. Economic reform measures at the Centre with an explicit emphasis on trade and industry considerably benefited Gujarat making its economic performance outstanding. The state government only facilitated the growth of private enterprise since its strategy was already consistent with the changes in the policy reforms at the Centre. Since mid-nineties, however, when the reform process at the Centre slowed down, the state government in Gujarat started taking major initiative to liberalise and reform its policies further. In this process, the focus of the development strategy seems to have shifted away from the organised manufacturing to the unorganised sectors and giving protection to the
SMEs. It is argued that Gujarat 's performance would again pick up as the national reform process gets back on the track.]
I.
Introduction:
In a multilevel federal democracy a state often represents a middle level between the central government and the local bodies. Gujarat had all these 3 layers of government efficiently functioning ever since its inception in 1960. The constitution of India provides reasonably clear division of the rights and duties of different layers of the governments for achieving overall development of the country. Within this broad constraints, different state governments in India have been following their own specific development strategies (see Dholakia, 1994).
During the process of economic policy reforms and liberalisation, the constraints and regulation on economic activities by the centre in different segments of the economy got relaxed. The states found more freedom and flexibility to pursue their own
-Ravindra H. Dholakia
Abstract
[The paper examines the development strategy followed by Gujarat state government during the nineties. It has followed the strategy focussed on industrialisation and urbanisation with an open door policy eversince its inception in 1960. Economic reform measures at the Centre with an explicit emphasis on trade and industry considerably benefited Gujarat making its economic performance outstanding. The state government only facilitated the growth of private enterprise since its strategy was already consistent with the changes in the policy reforms at the Centre. Since mid-nineties, however, when the reform process at the Centre slowed down, the state government in Gujarat started taking major initiative to liberalise and reform its policies further. In this process, the focus of the development strategy seems to have shifted away from the organised manufacturing to the unorganised sectors and giving protection to the
SMEs. It is argued that Gujarat 's performance would again pick up as the national reform process gets back on the track.]
I.
Introduction:
In a multilevel federal democracy a state often represents a middle level between the central government and the local bodies. Gujarat had all these 3 layers of government efficiently functioning ever since its inception in 1960. The constitution of India provides reasonably clear division of the rights and duties of different layers of the governments for achieving overall development of the country. Within this broad constraints, different state governments in India have been following their own specific development strategies (see Dholakia, 1994).
During the process of economic policy reforms and liberalisation, the constraints and regulation on economic activities by the centre in different segments of the economy got relaxed. The states found more freedom and flexibility to pursue their own
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