Digvijay Singh takes on Narendra Modi, but is he right?

Diggy Raja, as his close associates popularly know him, has always had a way with his words. Known to kindle many a political fire Congress leader Digvijaya Singh challenges NarendraModi to bare out facts instead of basking in the “aura created by public relation companies”.


In an exclusive interaction with ET, Singh, who is also a Congress general secretary, claims that Gujarat is way below, at 17th, on the human development index (HDI) to prove that Modi’s economic bravado is more fiction than fact. Latest data from the HDI, however, pegs Gujarat at 11th in 2011.

“Modi talks of the Lijjat Papad of Gujarat which actually started in Mumbai; or the Gujarati bhindis whereas Andhra Pradesh produces the maximum volume of the crop,” Singh says describing Modi as hype without substance. A questionnaire sent to Modi’s office was not replied to at the time of writing.

Attacking the development plank and model which has been Modi’s trump card, Singh challenged his claims of investment and growth in the state.

“While Modi may have signed scores of memoranda of understanding at the Vibrant Gujarat shows held over the years, only 10-12% of those have converted into real-time projects that have taken off,” Singh alleges.

Records shared by the state government at the end of the 2012 summit show investments worth Rs 39.6 lakh crore promised in the five Vibrant Gujarat summits; however, there are no records on the total number of projects or investments that have taken shape over the past few years.

Growth Gaps

Questioning the record growth figures that Modi has used in almost all his public speeches to showcase his development model, Singh alleges that Gujarat has often shown growth rates higher than the national average. Singh points out that Gujarat has seen double-digit growth even before the Modi era. It has always been a developed state with a 2-3% higher growth rate than the national average, contends Singh.

The growth rates now are the same or lower than what were recorded during Keshubhai Patel’s time, Singh adds. “The growth rate has not jumped twice or thrice under Modi for it to be celebrated as an achievement.” According to the Industrial Extension Bureau of Gujarat, the state has clocked an average annual growth rate of 10.4% in the past five years, a figure that is higher than that of the “Asian Tigers”. Gujarat contributes to 16% of the industrial production of the country and has also mobilised the highest share (12.7%) of the investments through lEMs [Industrial Entrepreneurs Memoranda] in the country,” according to the bureau.

Official records of the Reserve Bank of India (RBI) show Gujarat to have shown spurts of growth the ’90s. While there were some spells of marginal growth, the state also recorded a growth rate of 20% in 1994-95 and 15% in 1996-97.

Debt Dangers

Singh, a former chief minister of Madhya Pradesh, one of the backward states for 10 years, also questioned Gujarat’s economic fundamentals given the high debt exposure in the state. “He has the audacity to say, “Maine Gujarat ka karza utar diya ab mujhe desh ka karza utarna hai” [I have repaid Gujarat’s debts now, I need to do that for the country]. The per capita debt for the people in Gujarat is the highest.”

To be sure, as of 2012, Gujarat’s per capita debt was the highest, at a little over Rs 23,000, followed by West Bengal (Rs 21,029) and Uttar Pradesh (Rs 7,936). However, if you look at total debt exposure, Gujarat at Rs 1,38,978 crore is No. 3 after West Bengal (Rs 1,92,100 crore) and Uttar Pradesh (Rs 1,58,400 crore).

Manufacturing Myths

Refuting claims that Gujarat is the hub of manufacturing in the country, Singh says that Gujarat manages to only rank fourth in the manufacturing index after states like Maharashtra, Tamil Nadu and Karnataka based on the investments made in the manufacturing sector annually. Gujarat is not on the top even in the case of foreign direct investments, Singh adds.

The number of people below the poverty line has increased under Modi’s regime, he goes on, and investments in health and education have decreased. “It is clear that he is only feeding the rich. What has he done for the poor? It’s the only state that does not have a Lokayukta [a public grievance body] in the past 15 years.”

Singh suggests that the Gujarat chief minister needs to recheck his facts. But Singh may do well to check a few of his own, too. For instance, West Bengal and Tamil Nadu along with the Northeastern states do not have a Lokayukta, too.