Sources of economics growth and acceleration in Gujarat

Abstract

This article examines the growth experience of Gujarat in 17 sectors during the pre-reform period of 1980-92 and the reform period of 1991-2004, identifying strengths and weaknesses. It identifies episodes of high economic growth in each sector in the state over the last two decades and then derives the plausibly optimistic growth potential of the state. In order to examine the feasibility of such optimistic growth targets, a preliminary attempt is made to estimate traditional sources of economic growth in Gujarat in the neoclassical growth accounting framework for the primary and non-primary sectors in the two sub-periods. The article also offers a strategy and policy changes necessary to ensure that higher growth in Gujarat does not take place at the cost of other states, but benefits the nation as a whole.