Gandhinagar: The PM-EAC (Economic Advisory Council to the Prime Minister) has released a working paper titled ‘Relative Economic Performance of Indian States: 1960-61 to 2023-24’. The paper analyzes the rise and fall of the GDP of states as a percentage of the national GDP and the relative per capita income of the states.

Here are some interesting politico-economic insights drawn from the report:

Gujarat’s Monumental Economic Rise Since Narendra Modi

Gujarat’s relative per capita income actually declined during the 1970s and remained relatively flat until 2000-01, hovering just around 100%.

From 2000-01 onwards, due to the after PM Modi came to power in the state, Gujarat’s relative per capita income surged significantly crossing and eventually surpassing 162%.

Gujarat’s share in national GDP was practically flat around 6.4%-6.7% from the 1970s till 2000. But since Narendra Modi took office, Gujarat’s share in national GDP has skyrocketed from 6.4% to 8.1% seeing an unprecedented rise in state’s wealth.

Study in Contrast: Modi Under Gujarat and West Bengal Under Mamata Banerjee and Left Governments

In 2000, there was just a 10 % gap between the relative per capita income of West Bengal and Gujarat.

But the good governance and massive economic development under Narendra Modi spurred Gujarat to increase its relative per capita income from 108% to 162.9% by 2023. This is an increase of 54.9% in relative per capita income of Gujarat in 2 decades.

On the other hand, the continued goondagiri and economic mismanagement of Left and Mamata Banerjee’s TMC left West Bengal economy in shambles leading to their relative per capita income massively shrinking from 97.5 to 82.6. This is an almost 14% reduction in 2 decades.

From being close to the relative per capita income of Gujarat, West Bengal is now just half of Gujarat’s relative per capita income.

West Bengal’s share of National GDP was actually 40% higher than Gujarat’s share of National GDP in 2000. In the next 20 years, role reversal happened and now Gujarat has a 40% higher share of national GDP compared to West Bengal.

This is the result of 20 years of sustained good governance in Gujarat and 20 years of Goondagiri and misgovernance by the Left and TMC governments