Skip to main content

Gujarat urban upsurge leads to absolute rise in poverty despite high growth rate

By Rajiv Shah 
Not that economists have not noticed urban poverty in Gujarat; but they have focused on urban Gujarat in passing. For instance, there is a calculation that the percentage of urban poverty in Gujarat during the second half of the decade ending 2010 has gone down by 2.2 per cent, from 20.1 per cent to 17.9 per cent. Which means, the annual poverty reduction in the state has been just about 0.44 per cent. Notably, this is lower than a dozen out of 20 major states, including Madhya Pradesh, which saw a whopping 12.2 per cent reduction in urban poverty, followed by Orissa (11.7), Rajasthan (9.8), Maharashtra (7.3), Tamil Nadu (6.9), Karnataka (6.3), Kerala (6.3), Andhra Pradesh (5.7), Chhattisgarh (4.6), Bihar (4.3), Uttar Pradesh (2.4) and West Bengal (2.4). The all-India average percentage in poverty reduction is 4.6. Obviously, huge investments and a high growth rate have not helped Gujarat’s downtrodden sections, in any way.
In fact, one economist has calculated, in absolute terms, the number or urban poor in Gujarat has gone up 4.3 million in 2004-05 and 4.5 million in 2009-10. This should be worrisome for Gujarat, which is already the fastest urbanizing state of India. According to the latest Census of India data, Gujarat experienced a whopping 35.83 per cent rate of growth in urban population between 2001 and 2011. Currently, 42.6 per cent of the state’s population lives in urban areas, next to Tamil Nadu and Maharashtra. Yet, there has been little or no analysis on the impact of the drastic change in the state’s urban demography on overall social, economic and cultural scenario. Not that the Gujarat government is not aware of it. A government document, presented at the Chintan Shibir, a bureaucratic conclave, in early 2011, “records” the following as a fact: “While nutrition indicators appear worse in rural areas (48 per cent) compared to urban areas (39 per cent), the urban poor are at an equivalent disadvantage compared to rural populace and much worse than their affluent urban neighbours… Among urban poor, under-five under-nutrition is 56 per cent against 36 per cent among urban non-poor.”
Even then, National Sample Survey (NSS) data, released in September-October 2012, provide some indication of the status of different social groups in urban areas in Gujarat – scheduled tribes (STs), scheduled castes (SCs), other backward classes (OBCs) and others (mainly upper castes) – as to where things stand for each of them. NSS data (which are the most authoritative figures in the absence of Census of India figures) suggest that 75.7 per cent of urban ST households, 79.6 per cent SC households, 51.5 OBC households and 51.7 “other” households depend either on wages/ salaries or casual labour for their survival. As many as 19.7 per cent ST households, 18.2 per cent SC households, 44 per cent OBC households and 41.3 per cent “other” households are found to be“self-employed”. From available indications, this is not very different than most other states. However, when it comes to purchasing power in the urban areas, calculated as monthly per capita expenditure (MPCE), one gets a totally different story.
The picture that one gets is quite interesting picture, suggesting, that it is the SC households whose MPCE in urban Gujarat is worse than any other category. The SC households’ MPCE is Rs 1,292 as against the ST households’ Rs 1,624, OBCs households’ Rs 1,457, and “other’” households’ Rs 2,343. The average MPCE in urban Gujarat for all social groups is found to be Rs 1,909, which is lower than the national average of Rs 1,984. Gujarat’s average MPCE is worse than most major states, including Andhra Pradesh (Rs 2,238), Haryana (Rs 2,321), Himachal Pradesh (Rs 2,654), Karnataka (Rs 2,053), Kerala (Rs 2,413), Punjab (Rs 2,109), Tamil Nadu (Rs 1,948), Maharashtra (Rs 2,437), and West Bengal (Rs 1,965). But when it comes to SC households, the situation vis-vis other states is even worse. SCs’ MPCE (at Rs 1,292) is worse than Andhra Pradesh (Rs 1,757), Chhattisgarh (1,376), Haryana (Rs 1,429), Himachal Pradesh (Rs 1,553), Jammu & Kashmir (Rs 1,781), Karnataka (Rs 1,637), Kerala (Rs 1,709), Maharashtra (Rs 1,709), Punajb (Rs 1,462), Rajasthan (Rs 1,229) , Uttarakhand (Rs 1,371), and West Bengal (Rs 1,296). The national average for SC households is Rs 1,444. What is equally interesting is that, for the other three category of social groups, too, Gujarat’s MPCE is worse than the national average. Urban Gujarat’s ST households’ MPCE is Rs 1,624, as against the national average of Rs 1,797; it is Rs 1,457 for OBC households, as against the national average of Rs 1,679. And for “others”, as against Gujarat’s Rs 2343, the national average is Rs 2467.
The MPCE of SC wage/salary earning households is found to be Rs 1,437, but of casual workers (who account for 27 per cent of the total SC households) it is extremely low, Rs 1,036. The MPCE of casual workers among ST households (forming 21 per cent of total ST households) is found to be Rs 1,132. The OBCs’ MPCE among the casual workers is worse than all, at Rs 1006. As for “others”, their MPCE is Rs 1,222. In fact, figures suggest that there is enough reason for Gujarat’s casual workers to have less purchasing power than most other states. Here, NSS figures provide a very clear picture. Out of a total of 20 major states, casual labour in Gujarat earns on an average Rs 106, which is worse than as many as 14 other state. It is Rs 106 per day for Gujarat’s urban casual labour, as against Andhra Pradesh’s Rs 138, Chhattisarh’s Rs 111, Haryana’s Rs 143, Himachal Pradesh’s Rs 152, J&K’s Rs 150, Karnataka’s Rs 109, Kerala’s Rs 218, Maharashtra’s Rs 110, Punjab’s Rs 139, Rajasthan’s Rs 142, Tamil Nadu’s Rs 138, Uttarakhand’s Rs 136 and Uttar Pradesh’s Rs 107. The all-India average is Rs 121.
These facts are important, particularly if seen in the context of the fact that well-known international agencies are already predicting that Gujarat will be the most urbanized state of India. An authoritative report prepared by McKinsey Global Institute (MGI) two years ago, for instance, predicted that by the year 2030, a whopping 66 per cent of Gujarat’s population will start living in urban areas as against 42 per cent reflected in the 2011 Census. While this will make Gujarat as the second most urbanized state, fast catching up with Tamil Nadu, the report suggests that this will happen because the rate of growth of urbanization in Gujarat in the next two decades will be higher than any other state.
Called “India’s Urban Awakening: Building Inclusive Cities, sustaining economic growth”, the MGI report says that the states that exhibit higher gross domestic product (GDP) rates also will experience higher urbanization rates in the next two decades. The top consultants say, there is enough reason to conjecture as to why the rate of urbanization will be so high, indeed higher than any other state. In the last two decades Gujarat’s GDP grew at the compound annual growth of 7.5-8 per cent, in 2010-2030, it predicts, it will increase to 8- 8.5 per cent, higher than any major state.
An analysis of how major cities of India will develop over the next two decades, the MGI report states, Ahmedabad, which will have a population of 8.4 million in 2030, will also be one of the richest Indian cities, having per capita GDP of 8,100 dollars, next only to Delhi (11,400 dollars), Bangalore (12,600 dollars) and – interestingly – Vadodara (8,500 dollars). Counted at 2008 prices, all other major cities, including Mumbai, Kolkata, Chennai, Hyderabad and Pune will have lower per capita GDP. AT the same time, the report believes that Gujarat’s cities would need massive investments, more than most other cities, to upgrade their infrastructure to meet city needs. At 2008 prices, by 2030, Ahmedabad would need 246 dollars per capita investment, Surat 235 dollars and Vadodara 263 dollars. This is against 124 dollars per capita needed for the country. “More than half of the capital expenditure is necessary to erase infrastructure backlog and the rest to fund cities’ future needs”, the report underlines.

Comments

TRENDING

Crucial to revisit roots, embrace core Hindu principles: love, compassion, harmony

A note on religious leaders'  Satya Dharam Samvad in Haridwar: *** In a groundbreaking gathering, more than 25 religious leaders including Swamis, Acharyas, Pujaris, Gurus, and Sadhvis from all over India convened to discuss the tenets of Hinduism on September 16th, 2023, in Haridwar, to discuss and discern the current trajectory of Hinduism. This brand new initiative, the Satya Dharam Samvad, was inspired to organize its first assembly in response to the December 2021 Dharma Sansad, where hate speech and calls for violence against the Muslim community contravened the essential principles of Hinduism. Religion is being used to incite riots among Hindus, Muslims, Christians, Buddhists, Jains, etc. In the face of such hatred, Swami Raghavendra felt that something meaningful should be done in the present climate. 

Maoist tendency of mechanically adhering to Chinese path ignores Indian conditions

By Harsh Thakor  The C.P.I. (Maoist) formed in 2004 with merger of the C.P.I. (M.L) Peoples War and the Maoist Communist Centre has demonstrated courage in intensity compared to any great revolutionary struggle in the history of the world. It leads the largest armed movement of a Peoples Guerrilla Army in the world today and proved themselves as the true torch bearers of the Indian Communist movement.

Significant step towards empowering and particularly engaging with informal workers

ActionAid note on drive to empower informal sector workers Odisha with the support of District Labour Department: *** The Odisha Unorganised Workers Social Security Board (OUWSSB) facilitated an Unorganized Workers Awareness Camp at the Red Cross Bhawan in Bhubaneswar, Odisha. The event took place in collaboration with the District Labour Department at Khordha, Centre for Child and Women Development and ActionAid Association. This informative event aimed at empowering informal sector workers by disseminating crucial information regarding their eligibility for various social security schemes provided by the Government of Odisha.

We need to resurrect Neruda, give birth to poets of his kind amidst neofascist rampage

By Harsh Thakor  On 23rd September we commemorate the 50th death anniversary of Pablo Neruda, whose contribution to revolutionary poetry was path breaking. Pablo Neruda’s poetry manifested the spiritual essence of revolutionary poetry and how poetry was a weapon for a revolutionary struggle. The story of his life illustrated the spiritual transformation undergone a human being to transform him into a revolutionary and how environment shapes the lie of revolutionary.

Grassroots NGO enlightens people of Kupwara with intricacies of Right to Information

J&K RTI Foundation and Founder Civil Rights Movement Kupwara note on how RTI Pend is empowering Kupwara with insights on Right to Information Act: *** RTI Pend, the grassroots initiative aimed at democratizing access to information, hosted its 2nd event in Kupwara. On the request of the Civil Rights Movement Kupwara, this event was tailored to enlighten the people of Kupwara with the intricacies of the Right to Information Act, presented in their local language and dialects. The event successfully bridged both offline and online participation, addressing queries on the spot and offering applicants practical solutions.

Dev Anand ably acted as westernised, urban educated, modern hero, as also anti-hero

By Harsh Thakor  On September 26th we celebrated the birth centenary of legendary actor Dev Anand. Dev Saab carved out a new epoch or made a path breaking contribution in portraying romanticism and action in Bollywood cinema, giving his style or mannerisms a new colour. Arguably no Bollywood star manifested glamour in such a dignified or serene manner or struck the core of an audience’s soul in romantic melodies. Possibly we missed this evergreen star being cast in a Hollywood film. Dev Anand is like an inextinguishable soul of Bollywood. Although not as artistic or intense as Dilip Kumar, Raj Kapoor or Ashok Kumar ,Dev Anand surpassed them all for liveliness or flamboyance, with his performances radiating g energy on the screen, in realms rarely transcended. In his own right, Dev Saab, was a craftsman, like his classical contemporaries, with a characteristic composure. Perhaps never was a Bollywood star so suave, bubbling or charming as Dev Anand, who often looked like an Indian versi

Abrogation of Art 370: Increasing alienation, relentless repression, simmering conflict

One year after the abrogation by the Central Government of Art. 370 in Kashmir, what is the situation in the Valley. Have the promises of peace, normalcy and development been realised? What is the current status in the Valley? Here is a detailed note by the People’s Union for Civil Liberties , “Jammu & Kashmir: One Year after Abrogation of Art. 370: Increasing Alienation, Relentless Repression, Simmering Conflict”:

Agro-biodiversity through seed identification, conservation, replication, crop selection

By Kuntal Mukherjee, Basant Yadav, Shivnath Yadav* This article is mainly based on a journey of the three of us since 2010 based on field experience, study of different articles, reflective journeys with local community based organisations, villagers and practitioners in Chhattisgarh. The slow growth of Agriculture in India with near stagnation in productivity since mid ‘80s in contrast to the remarkable growth during the green revolution period has come to the front as a great concern. In post WTO era Indian Agriculture has been witnessing structural changes, uncontrolled influx of agriculture goods and commodities from foreign countries due to open market nature. The gradual reduction in subsidies from internal production leads to increasing cost of production of agriculture produces at the farm gate. It causes gradual decrease in internal production as well as productivity and posing threats to small farm and stakeholders. 

Indian youth can choose political career which offers tremendous opportunities

By Sudhansu R Das  The Indian political sector is growing faster than any other sector in the world. This sector has been fully liberalised. Political career in India is open to any age group starting from 25 plus to 90 plus; people with any educational background, even an illiterate person can contest election in India. An old man or woman with multiple organ failure can become leader of a political party; they can control party workers from the hospital bed also. Social status, physical and mental ability seldom stand in the way of a political leader. Advanced age is not an issue which can be reversed with effortless ease. 

Commodification of road accident deaths: The hidden health hazard of motonormativity

By Chandra Vikash*  Jahnavi Kandula, an Indian student from Andhra Pradesh, studying in America was killed in a road accident by a police motor car in January 2023. Now, 8 months after the accident, a bodycam video of Daniel Orderer, who is the vice president of the Seattle Police Officers Guild, has gone viral on social media. He was laughing at her death and saying that “she was 26 years old, anyway… she had limited value… just give her $11,000 (ie Rs 9.13 lakh)”.