Column : In the driver’s seat

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: such sector specific advantages, the relocated car project also stands to benefit from the giant strides being made by the state as it marches far ahead of its peers by more than doubling its SDP growth to 10.6% during the Tenth Plan. The project will also reap agglomeration gains as the state pushes up its industrial growth to 14% to attain the 11.2% SDP growth target of the Eleventh Plan.

Gujarat’s record in building infrastructure has also helped new investors, including the Tatas, to hold it in good stead. Developing as many as 42 ports in the last few years, with most of the funds coming from the private sector, and achieving a 13-strong airport network are major achievements in this sphere. Similarly, the statewide gas grid of 2,200 kilometres and the 53 special economic zones under various stages are feats that other states find hard to match. In fact the Eleventh Finance Commission report ranks the state’s infrastructure among the top five.

However, one area where Gujarat has lagged its peers is in its human resource development strategies. Despite the giant strides in the production sphere, the literacy levels in the state are still closer to the fag end of the line. Though Gujarat has tried to improve its education network in recent years, it will take the state considerable time and resources to match other states in this respect. But it is to the credit of the state that it has also sought to supplement its limited human resources with conducive policies that are rather friendly to immigrants from outside the state, a claim that some of the more developed states will find difficult to make.