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Gujarat's economy: India's Guangdong | The Economist http://www.economist.com/node/18929279/print

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Gujarat's economy Gujarat's economy: India'sIndia's Guangdong |Guangdong The Economist http://www.economist.com/node/18929279/print A north-western state offers a glimpse of a possible industrial future for India Jul 7th 2011 | AHMEDABAD | from the print edition Like 3K 0

Gujarat's economy: India's Guangdong | The Economist http://www.economist.com/node/18929279/print

World politics Business & finance Economics Science & technology Culture Blogs Debate & discuss Multimedia

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World politics Business & finance Economics Science & technology Culture Blogs Debate & discuss Multimedia Gujarat'sPrint edition economy India'sUnited States Britain Europe GuangdongAsia Americas Middle East & Africa Gujarat's economy AIndia's north-western Guangdong state offers a glimpse of a possible industrial future for India JulA north-western 7th 2011 | AHMEDABAD state offers | froma glimpse the print of a edition possible industrial future for India Like 3K 0 Jul 7th 2011 | AHMEDABAD | from the print edition Like 3K 0 SO MANY things work properly in Gujarat that it hardly feels like India. In a factory packed with kit from Germany and China, slabs of rubber and bags of carbon black are turned into tyres. After being X-rayed for imperfections, they will be distributed across India or sent for export within three days. Sandeep Bhatia, a manager for CEAT, the firm that owns the project, says it took only 24 months to complete, including the normally fraught process of buying land. There is constant electricity, gas and abundant water. The state government, he says, kept red tape to a minimum, did not ask for bribes, and does not interfere much now.

The tyre plant is not the only sign of prosperity in Gujarat. A nearby village may have fodder strewn all over its alleys and mice scuttling across shampoo sachets in the local store, but it also has satellite dishes poking up from the roofs and power metres on the wall of every house. Most of the men, the villagers say, work for small industrial firms for a wage about 50% higher than they would get in the fields. The road to Ahmedabad, Gujarat's main city, is privately operated and SO MANY things work properly in Gujarat that it hardly feels like India. In a factory packed with boastskit from Germanyfour lanes. and China, It passes slabs of rubberthrough and bagsa countryside of carbon black that are turned is visibly into tyres. industrialising. After being X-rayed for imperfections, they will be distributed across India or sent for export within Withthree days. a long Sandeep coastline Bhatia, aand manager too forlittle CEAT, rain the firmfor thatdecent owns thefarming, project, saysGujarat it took only has24 months always to complete, been famous including forthe normallyits traders. fraught Whenprocess itof buyingwas hived land. There off fromis constant SOelectricity, MANY gas things and abundant work water. properly The state in government,Gujarat that he says, it hardly kept red feelstape to like a minimum, India. In a factory packed with Bombaydid not ask forto bribes,form anda separate does not interfere state muchin 1960, now. "the question was how Gujaratkit from would Germany survive," and China, says Narendraslabs of rubber Modi, whoand bagshas been of carbon chief black are turned into tyres. After The tyre plant is not the only sign of prosperity in Gujarat. A nearby village may have fodder ministerbeingstrewn all X-rayed over since its alleys 2001.for imperfections,and These mice scuttling days across Gujaratthey shampoo will accounts be sachets distributed infor the 5% local across of store, India's butIndia it also or sent for export within populationthreehas satellite days. dishes but Sandeep poking16% upof Bhatia, from its theindustrial roofsa manager and outputpower for metres andCEAT, on 22% the the wall of firm ofits every exports.that house. owns Most the of project, says it took only 24the men,months the villagers to complete, say, work for including small industrial the firmsnormally for a wage fraught about 50%process higher ofthan buying they land. There is constant Itswould growth get in the has fields. outpaced The road toIndia's Ahmedabad, (see Gujarat's chart) main and city, it winsis privately accolades operated and fromelectricity,boasts businessfour lanes. gas It people. passesand abundant through A recent a countryside water. comparison The that isstate visibly of government,Indian industrialising. states heby says, kept red tape to a minimum, McKinsey,didWith nota long ask coastline a forconsultancy, bribes, and too little and waxedrain does for decent lyricalnot interferefarming, about Gujarat Gujarat.much now. It might yet playhas always the beenrole famousof industrial for its traders. locomotive When it was for hived the off country, from as TheBombay tyre to formplant a separate is not statethe inonly 1960, sign "the questionof prosperity was how in Gujarat. A nearby village may have fodder Guangdong province did for China in the 1990s. There is lots of Gujarat's economy: India'sstrewnGujarat Guangdong would all oversurvive," | itsThe says alleys Economist Narendra and Modi, mice who scuttling has been chiefacross shampoo sachets in the localhttp://www.economist.com/node/18929279/prin store, but it also t excitedhasminister satellite since talk 2001. about dishes These exporters pokingdays Gujarat up switching accountsfrom the for from 5%roofs of India'sChina and powerto India. metres Sanjay on the wall of every house. Most of Lalbhai,population butthe 16% chairman of its industrial of Arvind, output and a textiles22% of its makerexports. and clothing retailer based in Ahmedabad, says theIts growth men, has the outpaced villagers India's say, (see chart)work and for it smallwins accolades industrial firms for a wage about 50% higher than they wouldfromsuch business a getmove inpeople. theis "imminent" Afields. recent comparison The roadin his of to Indianindustry. Ahmedabad, states by Gujarat's main city, is privately operated and boastsMcKinsey, foura consultancy, lanes. waxedIt passes lyrical throughabout Gujarat. a countryside It might yet that is visibly industrialising. play the role of industrial locomotive for the country, as GuangdongChinese-style, province big-ticketdid for China inprojects the 1990s. are There part is lots of of Gujarat's formula, including refineries and ports, but 1 of 2 With a long coastline and too little rain for decent farming, Gujarat 8/3/2011 2:32 PM excitedso are talk networks about exporters of smaller switching firmsfrom China and to foreignIndia. Sanjay companies which have now achieved critical mass in hasLalbhai,industries always the chairman such been asof famous Arvind, cars anda fortextiles pharmaceuticals.its makertraders. and clothing When retailer Theit was statebased hived ingovernment Ahmedabad, off from says uses the usual tricks to try to Bombayjump-start to formgrowth, a separate including state special in 1960, economic "the question zones. But was more how important, it has provided the Gujarat would survive," says Narendra Modi, who has been chief 1 of 2 bog-standard things that businesses pray for across India but often do not8/3/2011 get—less 2:32 P Monerous minister since 2001. These days Gujarat accounts for 5% of India's labour laws, passable roads, reliable electricity and effective bureaucracy. population but 16% of its industrial output and 22% of its exports. ItsAgainst growth the has charge outpaced that someIndia's people (see chart) have beenand it left wins behind, accolades Gujarat can point to reasonable fromgrowth business in agriculture, people. Ahelped recent by comparison irrigation schemes.of Indian statesBut the by state has a black spot, which dates McKinsey,back to 2002 a consultancy, and an outbreak waxed of lyrical sectarian about violence. Gujarat. AsIt mightmany asyet 2,000 people (the official toll is playlower) the were role killedof industrial in a month locomotive of riots, for most the country,of them asMuslims. Some say Mr Modi and the state Guangdonggovernment province were complicit did for Chinain the inviolence the 1990s. or could There at is least lots haveof done more to stop it. excited talk about exporters switching from China to India. Sanjay Might prosperity help heal the wounds? In Juhapura, a district on Lalbhai, the chairman of Arvind, a textiles maker and clothing retailer based in Ahmedabad, says the outskirts of Ahmedabad dominated by the Muslim minority, a young mason grows angry when asked if he feels lucky to make 250-300 rupees a day ($6-7), saying he only gets work for 15 days 1 of 2 a month. Others are more content. A bearded man down the road 8/3/2011 2:32 PM says his party-decoration business is booming. Behind the till of a shop selling top-ups for mobile phones and stationery for the Compare the population and GDP nearby school, a man in a skull cap says life has undoubtedly of Indian states to those of entire improved, although his 82-year-old father, sitting in a deckchair, countries using our interactive map complains that everything went to the dogs when the British left.

Gujarat could be a vision of India's future, in which manufacturing flourishes, soaking up rural labour. Its economy is expected to grow by double digits, even as India's rate slows to 7-8% this year. The state may also be a springboard for Mr Modi, who may contest the national leadership of the opposition Bharatiya Janata Party, perhaps after state elections due in 2012. Mr Modi is enigmatic on this subject. He has yet to shed his polarising image, but he has at least built up an enviable record on the economy.

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2 of 2 8/3/2011 2:32 PM (Gujarati, 13.1%); Mahratta (Marathi-Konkani, 10.8%); Brahmin (Hindi, 6.6%); Shaikh (Bengali, Goa 4.8%); Halwakki Wakkal (Kannada, 3.1%); Bania (Rajasthan, 2.1%); Bhansala (Marathi-Konkani, 2.0%); Sonar (Hindi, 1.7%); Giddikki (Marathi- Konkani, 1.6%). Area 3,700 sq km. Portuguese colony 1510- 1961. Full statehood in 1987. Population 1,727,494; 432 people/sq km. Hindu 65.8%; Christian 26.7% (41.5%), almost entirely Catholic; Muslim 6.8%; Other 0.2%. People groups 290. Ten largest: Goan Catholic (Marathi-Konkani, 24.8% of state pop); Kunbi

Goa is a beautiful, bio-diverse area that attracts many tourists from India and the q world each year. But with this come structures of sin, such as drug trafficking and child prostitution. Pray for a government that will act decisively to end these evils; pray for those caught up in them to be delivered into new life. Traditional Catholicism is the legacy of Portuguese rule. Hindu beliefs and customs w are interwoven with Christianity. New life in Christ and a clear understanding of biblical Christianity are great needs; pray for both. There is a significant Catholic charismatic presence, but Protestants are only around 1,300 in number and churches are very few. Workers able to communicate in Konkani (the language of most Christians and many e others) are a great need. Labourers to reach nominal Catholics, Hindus or Muslims are few but growing (GFA, Mustard Seed Ministries). Praise God for the recent completion of a new I Konkani Bible – after 18 years of translation work. Other literature is needed to supplement this, for both evangelism and for discipling nominal Christians.

Gujarat People groups 631. Ten largest: Koli (Gujarati, 13.4% of state pop); Kunbi (Gujarati, 13.3%); Mahratta Kunbi (Gujarati, 7.3%); Bhil (Bhil, 6.6%); Rajput (Hindi, 4.3%); Bania (Rajasthan, 4.0%); Brahmin (Hindi, Area 196,000 sq km. Coastal state adjoining 3.6%); Mahyavanshi (Gujarati, 3.1%); Shaikh (Bengali, Pakistan. Desert in NW, fertile in SW; wealth 2.9%); Dhangar (Gujarati, 2.5%). through oil, industry and agriculture. Languages 17. Gujarati 90.0%; several other Population 59,855,330; 305 people/sq km. languages. Hindi often used as a second language. Capital Gandhinagar 235,000. Other major cities Ahmedabad 5.7m; Surat 4.2m; Vadodara 1.9m; Rajkot 1.4m. Hindu 89.1%; Muslim 9.1%; Jain 1.0%; Christian 0.6% (1.2%).

Gujarat remains a focal point for religious tensions and persecution. Hindu q extremist groups, with the support of the local BJP government, the police and the administration, have pursued a long-term strategy of intimidation, slander and harassment of Muslims and Christians in Dalit and tribal groups. An anti-conversion law was passed in 2003 that makes evangelism and church planting very difficult to do legally, but no such constraints are placed on aggressive Hinduization of tribal Christian groups such as the Dang. Pray for a government that will promote intercommunal harmony and true freedom of religion. Gujarat was Gandhi’s birthplace – may the peace and tolerance he promoted become reality here. The Christian Church is predominantly Catholic, Church of North India and Methodist. w Many other smaller evangelical denominations are also present, including recently planted indigenous churches. The oppressive religious context has prevented outreach, sapped spiritual vitality, fomented division and, in some sections, seen the Church compromise with Hinduism. Yet persecution has also often triggered new life and revival. Pray for the Holy Spirit to do a powerful new work in the churches of Gujarat. 424 There is significant churchIndia growth in fiveOperation districts. The World impact of the Methodist e Church, the Salvation Army and new Indian missionary efforts among tribals contrasts the earlier decline in the state, with rapid church growth in the southeastern Dangs district. Many Bhil, Kukna, Gamit, Chaudhri, Garasia, Koli, Dhodia and others have come to Christ, slightly increasing the percentage of Christians in the state. Pray that this turning to God may continue unchecked by external opposition or internal failures. The unreached – while some tribal peoples are responding to the gospel, much need r remains. There are nine districts and 128 subdistricts that are less than 0.1% Christian. There are also 19 peoples, each with populations over 100,000, who are unreached and as yet unengaged by Christian ministry. Pray for labourers to: a) Saurashtra, the western peninsula reaching in to the Arabian Sea, with 12 million people including over 1 million Jains; only 0.07% are Christian. This area was the worst affected by the 2001 earthquake. b) Muslims, who number 5.4 million and are the largest and least-reached segment of the population. There are 76 distinct people groups among them – mostly in the west, north and in Ahmadabad and Baruch districts in the east. c) Unreached caste groups. Dalit groups – Bhangi, Nadia and Pasi – are urbanized and becoming responsive, with over 3% Christian. d) The 20 tribal peoples with little outreach – the larger being Bhil, Dubia, Dhodia and Rathawa. e) Parsees – they are an ancient community of well-educated, wealthy people of Persian origin who follow the Zoroastrian religion. There are only a few dozen known believers in the whole world among the 4.5 million Parsees. Pray for the beginnings of ministry among them and for the translation of the Bible into their language. I f) The Jain religion – an ancient Indian religion with a strong emphasis on moral purity and non-violence. Gujarat has over 700,000 Jains of India’s total of 5 million. Ahmadabad is a major Jain centre with over 100 temples. Jains are often wealthy and control much trade and industry in the state. Little has ever been done to evangelize them. Large Gujarati communities have grown up in east and central Africa and in Britain. t Most have become wealthy traders but, although surrounded by Christians, there has been little success in evangelism.

Haryana People groups 375. Ten largest: Jat Hindu (Jat, 15.9% of state pop); Chamar (Hindi, 9.9%); Arora Hindu (Hindi, 7.8%); Rajput (Hindi, 7.2%); Brahmin (Hindi, 7.1%); Chuhra (Punjabi, 3.8%); Area 44,200 sq km. Between Delhi and Punjab Bania (Rajasthan, 3.3%); Jat Sikh (Jat, 3.1%); in India’s northwest. Shaikh (Bengali, 3.0%); Teli (Hindi, 2.9%). Population 25,224,807; 566 people/sq km. Languages Haryanvi and Hindi dominate; also Capital Chandigarh 1.0m (shared with Punjab Punjabi 6.0%; Urdu 2.0%. and is a Union Territory). Other major city Faridabad 1.5m. Hindu 88.2%; Sikh 5.5%; Muslim 5.8%; Jain 0.3%; Christian 0.1% (0.3%).

Haryana is one of India’s least-evangelized states. Only 32,000 identify themselves q as Christian. There were only 650 churches and prayer cells, occupying less than one-half of the state’s 449 Pincode areas. The Church is weak, small and routinely under threat from Hinduists. With the economic advancement Haryana enjoys, there is a large influx of peoples from other states, bringing in peoples both evangelized and unevangelized.

India June 19 - July 4 425