Chief Minister Anandiben Patel will be under increased pressure after the rankings for state growth were out for 2014-15. In 2014-15, Gujarat has recorded one of the lowest ever growth rate in terms of Gross State Domestic Product (GSDP) at 7.7%. Gujarat, which used to come among the top 5 states in the country in terms of GSDP, has dropped to 10th position in 2014-15, according to recently released data by Ministry of Planning.

Nitish Kumar’s Bihar grabs top spot

Surprisingly, Nitish Kumar’s Bihar the top position in terms of GSDP growth in 2014-15 having a growth rate of 15.6%. During Chief Minister Narendra Modi’s rule in 2012-13, Gujarat held the second rank with a growth rate of 10.8%, reported the Times of India.

Faltering numbers

According to estimates based on constant prices, the GSDP growth of Gujarat in 2015-16 stood at mere 6.7%, lowest in last 10 years. It was 7.7% in 2014-15; 8.3% in 2013-14; and 10.8% in 2012-13, according to the data of ministry of planning. The size of the state GSDP in 2015-16 (according to advance estimates) is expected to be Rs 9,84,971 crore.

City-based sociologist and economist Ghanshyam Shah told Times of India,

“The kind of industrial policy has been adopted in Gujarat which only promoted big industries can be one of the factors behind the slow-paced growth. Because, those industries, which first promised to give employment to locals, but did not fulfill it later, only proved to be capital intensive industries rather than a labour-centric industries.”

He also blamed land agitations that have been taking place for the last two years are having a negative impact on investment.