Abstract

This paper analyses key economic management characteristics exhibited by the Government of Gujarat and its initiatives to sustain broad-based growth. A growth diagnostics framework of Rodrik (2010), modified to suit India's federal context in which states will play an increasingly prominent role, focusing on addressing demand-supply gaps for a particular sector in investments, skill-sets, livelihoods, knowledge application and productivity, is used in the paper to analyse Gujarat's economic management. The paper finds that Gujarat's overall economic management and design and implementation of three programmes - Jyotigram Yojana (JY) for improving rural and agricultural power supply; Chiranjeevi Yojana (CY) for reducing maternal and infant mortality; and rapid agricultural development in the Saurashtra region - are broadly consistent with the modified growth diagnostics framework. Gujarat's economic management is characterised by issue- and sector-specific initiatives to obtain desired outcomes rather than by an adoption of a pre-conceived growth model applied across sectors. Gujarat has relied on developing growth nodes across a variety of sectors designed to enhance resiliency of the economy while generating growth.

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