Gujarat's USP lies in tatters after blasts
The serial blasts may not go beyond shaking the corporate world betting big on Gujarat, but have certainly attacked Gujarat government’s USP-a terror-free state for five years.
By Mitul Thakkar, ET Bureau |
AHMEDABAD: The serial blasts may not go beyond shaking the corporate world betting big on Gujarat, but have certainly attacked Gujarat government���s USP���a terror-free state for five years.
Time and again the Narendra Modi government has been highlighting the fact that there has been no major terror activity in the state while driving home the point that there was law and order in the state and the policies conducive to the growth of business in the state. The attacks have surely shattered the state���s confidence.
Though it may be premature to gauge the impact of the blasts that occurred in residential areas and hospitals on investor confidence, the issue is certainly crucial as too much is at stake for the state, which is eyeing the No. 1 position in the country.
Through its three much-hyped three global investors��� summits being organised since 2003, the state government has received investment proposals worth Rs 6,34,063 crore in around 1,000 projects committed in the state. Besides, the state is attracting considerable investments in some of its dream the projects like Gujarat International Finance Tec-City (Rs 63,000-crore), Delhi-Mumbai Industrial Corridor (Rs 1.20 lakh-crore for Gujarat stretch), Petroleum Chemical and Petrochemical Investment Region among others. The state government has also kickstarted number of projects in private participation with investors in the areas like infrastructure.
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All these projects are at stake if the state, which has barely wiped off the stains of 2002-riots, fails to offer peace and safety to the investors. The terrorists attacked when Gujarat chief minister Narendra Modi and state machinery had just begun work on organising the next edition of Vibrant Gujarat Global Investors��� Summit in second week of January next year. The state has all plans to make the event bigger than Vibrant Gujarat 2007 where investors inked 363 MoUs worth Rs 4,61,835 crore.
It may be recalled that the state received highest domestic investments worth Rs 4,52,983 crore much higher than Maharashtra���s Rs 3,89,190 crore between 1991 and 2007. Though, the state is lagging in FDI, it is certainly catching, with the state���s dream of setting up 100 SEZs and pursuing a port-led development policy.
Ahmedabad alone attracted 2.84% of India���s total FDI during April-November 2007. In this period, FDI inflow stood at Rs 45,098 crore in India. With increasing investment flow in the sensitive areas, the state that is being headed by BJP���s Hindu poster boy Narendra Modi is also becoming more vulnerable to the extremists. Majority of the investments, in Gujarat, is coming in the critical areas and infrastructure projects. For instance, the state is likely to attract investments in areas like over 50 SEZs (Rs 1,70,889 crore) and power (1,33,429 crore), among others.
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