Why Have BJP's Welfare Measures Been Only Partly Successful In Gujarat?

For the first time since 2002, the BJP’s supporters, including the Patels, have criticised the party’s rule in Gujarat because of its economic performance. Resentment among the urban youth has been increasing due to the large number of educated unemployed. Recent data indicate that the number of educated unemployed stood at around 6.12 lakhs in 2016. Additionally, the farmers argue that their daily income, which was ₹264 in 2016, is ₹77 less than the national average.

- G.C. Dutt

The situation has worsened after demonetisation and the implementation of the Goods and Services Tax (GST). However, such resentment must be linked to the corporate friendly policies, dating back to the early days of BJP rule in the state. The industrial policy of 2003 is a case in point. A large number of industries were exempted from obtaining no objection certificates from the state’s pollution control board and the release of agricultural land for industrial use was made easier. In 2004, the state assembly passed the Gujarat Special Economic Zones Act that made land acquisition easier and labour laws less stringent. Five years later, the Gujarat Special Investment Region Act was passed to promote mega projects. Gujarat’s Industrial Policy of 2009 was designed to promote the state as one of the most attractive investment destinations.