Thread by @thinkschoolbot

Gujarat was every investor's NIGHTMARE in 2002.

• Slow & CORRUPTED Gov. clearances.
• Poor & Broken Infrastructure
• Energy & Water Shortage
• Social Unrest

But then... Gujarat grew by a whopping 15% for 20 YEARS!

Here's how Gujarat cracked the code for development ↓ 🧵

Zoom back to 2002.

Gujarat was facing one of its worst times in history:

• People didn't have water to drink.
• They were afraid to go out (2002 riots).
• Massive earthquake in Bhuj in 2001 killed 13,000+ people.

And not just that,

Economically speaking, Gujarat was one of the WORST Places to do business in.

• Frequent Power Outages,
• Poor Infrastructure
• Water Shortage

And slow and corrupt government procedures made businesses wary of Gujarat.

But then, they implemented a strategy to genius, that today Gujarat boasts of:

• 77% of our petroleum exports
• 33% of our pharma capabilities
• Being India's TOP EXPORTER
• 23x rise in GDP

So how did this change happen?

It was due to 3 key changes:

• Solving Power and Energy Crisis
• Ease of Doing Business
• Megaprojects

Read on for more knowledge ↓

1/ Solving Power and Energy Crisis

The Gujarat water crisis roots from the following problem -

It has just ONE MAJOR river - Narmada.

This meant all other parts of the state were facing a SEVERE drought.

So how did they solve the water crisis?

By Canals.

Investing heavily into canals, they ensured Narmada's water reached even the remotest areas of Kachchh.

The result?

Agricultural output grew by 70% in just 5 years! (FY07-FY12)

To solve the Power problem,

They replaced the power lines with newer, more efficient ones, and built many power plants, resulting in

• 15% reduction in Transmission Loss.
• From being Energy deficit to being energy SURPLUS!
• Profits!

After fixing the basic problems, they↓

2/ Improving Ease of doing business.

To boost the ease of doing business, the Gujarat implemented 2 key systems:

• Single Window Clearance:

Instead of waiting months for approvals, businesses now had a one-stop online solution for clearances - saving time and money.

• Land Banking System:

Here, the Gov. acquired huge tracks of land in advance, making it readily available for businesses.

This saved the businesses YEARS of their time negotiating with small landowners.

Then, Using the "Vibrant Gujarat Summit" as a platform,

Gujarat showcased its remarkable development, seamless business environment, and the success of existing industries (like Tata's Nano Plant) to attract companies to invest in Gujarat.

And it worked.

3/ Mega Projects

Gujarat didn't just focus on the present, it built for the future.

Megaprojects like GIFT City, and Dholera, were a literal 'gift' for the Indian business intuitions.

Being an IFSC, GIFT City helps companies save money while transacting globally.

And, Dholera is a blueprint for a global manufacturing and trading hub.

It boasts world-class infrastructure and a strategic location for seamless exporting.

But... this is not the end of Gujarat's development.

In the Human Development Index, Gujarat is among the worst states.

And in terms of literacy, there is a whopping 16% disparity among literacy rates among men (85%) and women (69%)

This means - although Gujarat cracked the code for businesses, it still has a LOT to grow.

So to conclude, Gujarat grew because of -

• Focusing on Basic Facilities
• Implementing
- Single Window Clearance
- Land Banking System
• Vibrant India Summit
• Developing Mega Projects

Do you think other states can mimic Gujarat's growth strategy?

Comment ↓

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