The Truth About Gujarat's Growth Numbers

The Truth About Gujarat's Growth Numbers Sun, 23 Mar 2014

The Truth About Gujarat's Growth Numbers

The Gujarat Government tried to hide it but the truth is out for all to see. The state grew at 9.25% in 2011-12 at current prices while the country grew at 13.52%. At least 14 other major Indian states grew faster than Gujarat during 2012-13.

The Gujarat government, famous for its financial jugglery, stands exposed with a little bit of research. Put two and two together and you get the full picture.

The Gujarat Finance Minister Shri Nitin Bhai Patel tried to hide these facts when he made his interim budget for 2013-14 when he said: '€œThe GSDP of Gujarat (at current prices) which was Rs 1,11,139 crore in the year 2000-2001 has increased to Rs 6,70,016 crore in the year 2012-13.'€

(Source: http://financedepartment.gujarat.gov.in/budget14_15_pdf/FM_Speech_English_Part_A_Final.pdf, page 1)

Why would a state government give a decade'€™s perspective and not talk about the growth in the last financial year? Because the numbers were really bad.

Time to bring the second piece of the jigsaw puzzle.

The Planning Commission, which releases the data provided by the state governments, states that total GSDP of Gujarat at current prices for the '€˜previous'€™ financial year (2011-12) was Rs 6,11,767 crore. (Source: http://planningcommission.nic.in/data/datatable/1203/table_162.pdf)

Now here is the simple math.

Rs 6,70,016 crore (GSDP 2012-13, as provided by Shri Nitin Bhai Patel) '€“ Rs 6,11,767 crore (as provided by Planning Commission) = Rs 58,249 crore (increase in GSDP current price) Gujarat'€™s GDSP Growth Rate (at current prices)= 58,249/6,11,767= 9.52%

You are welcome to check the sources and do the math yourself.

Now let'€™s take a closer look at the data provided by the Planning Commission.

Here is what the growth rate rankings look like for major Indian states. Finding Gujarat would be a little difficult.

 

Hope this settles all discussions on growth and fake claims about it.

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