By Subrata Majumder
According to a NITI Aayog survey report, Gujarat is failing in reduction of poverty despite emerging as the fastest growing state in industrialization. The ranking of Gujarat in poverty alleviation is even lower than West Bengal – one of the poorest states in the country. Gujarat ranked 16withpopulation living below Multidimensional Poverty Index (MPI) in 2019-21. West Bengal was above Gujarat, ranking 15th. In Gujarat, population below MPI was 9.03 percent and in West Bengal, it was 8.60 percent.
Argument and counterargument continued over Gujarat failing in poverty reduction and trailing behind West Bengal. Modi model of development followed in Gujarat has been questioned by the opposition parties.
Why has Gujarat failed to reduce poverty, while it is leading in industrialization. Faster growth in industrialization should have opened up more scope for employment opportunities in the state. In the recently held Global Summit, foreign and domestic investors crowded to invest in Gujarat. It was focused as only the state for potential growth in India and better livelihood in the state.
The fallacy lies with geographical landscape of Gujarat. It is desert prone area. Nearly, 52 percent of the land in Gujarat is covered by desert. This demonstrates disadvantage for Gujarat to generate agricultural employment. Giving India agro based economy and larger part of people living in agriculture, livelihood in Gujarat should have been generated mainly from agriculture.
But, Gujarat was deprived of the scope for generation of agriculture employment and livelihood for the agriculture poor because of its geographical characteristics. This imparted a cascading impact on agricultural income in the state and potential to reduce poverty alleviation.
Gujarat is restricted by scarce fertile land and irrigation facilities due to widespread desert in the state. These restricted agrarian employment opportunities. As a result, it also restricted development of agro-based economy.
In contrast, West Bengal is indebted with plain and fertile land, giving enough scope for agricultural employment. This led substantial support to agriculture farmers for their growth in income and push farmers above the poverty in West Bengal.
Food grain is the main part of agricultural income in India. Gujarat is no different. Gujarat trailed much behind of West Bengal, Haryana and Punjab in food grain production due to desert. It’s share in total food grain production of the country lagged at 3.19 percent, against 6.6 percent in West Bengal and 6.49 percent in Punjab in 2021-22.
Land covered under food grain production in Gujarat is half of West Bengal and lower than of all India average. Land under irrigation is less than all-India average. It is 34.4 percent against all-India average of 51 percent.
The main agriculture products in Gujarat are cotton and oilseeds like groundnut and sesame. The only income from desert is salt production. Rann of Kutch is the largest desert in Gujarat. Salt production is the only means of livelihood for people in Kutch. But, the employment is seasonal. It is from October to June.
Given the land conundrum due to geographical characteristics, Gujarat should focus on development of non-agriculture sectors to alleviate poverty. Gujarat emerged a new face of industrialization in the country. From automobile to hi-tech industries, Gujarat is posing a big challenge in industrial transformation in the country. But there is no concerted move to help the people living in the desert areas.
Gujarat has emerged a new hub for EV (Electric Vehicle) industry with Maruti to set up the biggest EV plant in the state. The State’s automobile sector is valued at US$ 3 billion and has become a major exporter of automobile and auto parts.
Gujarat vowed to have the country’s first semiconductor devise manufacturing facility. Tata group will set up semiconductor fab manufacturing facility in the state. Micron, USA has already started construction of plant for assembly, testing and packaging.
The manufacturing growth by big houses in Gujarat, both by domestic and foreign, will unleash greater opportunities for unemployed farmers, stemmed from murky agriculture characteristics, to earn livelihood and abate poverty in the state The state government has to work on innovative developmental programme to bring the poorer people of desert are as above the poverty line. (IPA Service)
