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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Kerala-Gujarat Models: A Comparative Study With Respect To Socio-Economic Environment

Muhammed Salim. A.P Assistant Professor of Economics M.E.S. Mampad College (Autonomous), Malappuram Dist., ,

Abstract: Kerala-Gujarat Models of development mixed. Thompson (2010) observes that a common were lauded and animadverted on approach to economic development used by state accomplishments and impairments in varying and local governments across the country and in sectors. This study exhumes the distinction of New England is to provide a variety of financial Gujarat Model in economic sectors shown by high incentives and subsidies with the goal of increasing per capita income, better and constant share of employment and investment. This development agriculture and industry, and giant and diversified approach in US involves both social and economic energy sector. Kerala’s peerless and enviable considerations. Lynch (2004) argues that by outcomes in health and education have really made stimulating growth, generating jobs, and providing the Kerala Model distinguished all over the world. direct benefits to residents, improvements in state While Gujarat Model is weak on education-health and local public services can be one of the most standards even though improving, Kerala Model effective strategies to advance the quality of life of made the globally comparable outcomes in it at the citizens. This approach as stated by Lynch is to backing of poor economic standards. At that, enhance the production sectors and conserve the Kerala which is blessed with top standard social interests of the commons in tandem in US. Since indicators trails by high crime rate against women most countries have embraced democracy in more and children and suicide rate. Biggest paradox in or less manner, all such governments should have these models of development is highest mitigate the issues of the commons while striving unemployment rate in Kerala with lowest poverty for economic growth. ratio and lowest unemployment rate in Gujarat with higher poverty ratio. Even though these two 1.2 Sen-Bhagwathi debate: Amartya Sen, Nobel transverse models lead or trail in transverse Laureate in Economics and renowned economist indicators of development, lead the national and Jean Dreze, Sen’s co-author in his major works average mostly. are the magnates who admired and supported Kerala Model of Development. While, Jagdish Key words: Gujarat Model, Kerala Model, Bhagwati, Indian-born American economist and economic sectors, social sectors Professor at Columbian University and Aravind Panagariya, Bhagwathi’s colleague in Columbian 1. Introduction University and present Vice Chairman of NITI Ayog are the principal economists who preferred The famed Kerala Model and Gujarat Gujarat Model of Development. None of them Model are the two different development models refuses achievements made by both models of which are being acquired some acclamations and development. But the debate is over how subjected to some criticisms. Both the models are development can be appropriated and what entirely dissimilar in terms of approach to approach to be followed by the whole nation. Sen development. Kerala Model focused on marching believes that investment in capability enhancing to economic development through desirable social sectors clearly stating social infrastructure will changes while Gujarat Model tries to bag desirable surely bring economic development. Bhagwathi social changes through sound economic anchor. thinks that this model of development is not Both models have many accomplishments and sustainable as it has no resource base. Thus the impairments. The discussions are on which model capability approach visualized by Sen is absolutely of development that India should follow. As far as rejected by Bhagwathi. He argues that a national economy is concerned, it is important to achievements in social infrastructure can be derive and prioritize the good aspects of the two possible only at the support of economic models. infrastructure and growth. At the same time rejecting Bhagwathi’s view Sen noted that without 1.1 Integration of global approaches to the investment in social infrastructure inequality development: The approaches to development will widen and the growth process itself will falter. being followed across the world is more or less At that, Bhagwati argues that growth may raise

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in inequality initially but sustained growth will Development in both social and economic sectors eventually raise enough resources for the state to is required for the comprehensive development of redistribute and mitigate the effects of the initial the country. The development model without inequality. improvements in any of the sectors will be amateurish. 1.2.1. On Kerala Model & Gujarat Model: Bhagwathi and Panagariya (2012) argued that 4.1 Economic Sector Development achievements of so called Kerala Model was due to the growth oriented approach. They argued that Although Sen believed this would be the there is a clearly identifiable Kerala Model to outcome of capability, economists like Bhagwathi which Kerala’s superior education and health argued that this is the rock-bottom of social sector outcomes can be attributed is absent. Thus they development. The investments and incentives in note that Kerala Model has yielded superior economic sectors like industries and agriculture are outcomes at the blessing of reforms. At that Sen required for the development in economic sectors. (2013) argues that many successful examples can Trends, features and issues in the indicators such as be taken from Kerala Model. He blames Gujarat Net State Domestic Product (NSDP) and NSDP per Model on the ground of poor social infrastructure- capita, and sectors such as agriculture, industry, backward education and health standards and urbanization and infrastructure are brought under adverse roads. Supporting the Kerala Model, Sen this section. (2013) states that when Kerala went that way, it 4.1.1 State income of Kerala & Gujarat was one of the poorer states in India, but the basic policy of human capability formation through Gujarat state economy in terms of NSDP public efforts facilitated economic growth in at current price is been much larger than Kerala Kerala, and so eventually it became one of the economy for decades with about one time high. richer Indian States. Bhagwathi (2013) stated in The Gujarat economy which was lower than major interview with the Economic times ‘Kerala simply state economies such as , , started at very high levels of social indicators than West and in 1980s and the rest of the country and it has maintained that early 1990s and was at 7th or 8th rank among Indian lead. In 1951, literacy rate was 47% in Kerala states have been resurrected in outrunning compared with just 18% in India and 22% in the above state economies and became 4th largest Gujarat.’ economy in India ever since 2005-06 (Table 1). While the Kerala economy which was at 10th rank 2. Objectives in 1980-81 was not able improve its standing. 1) To unearth the features and issues of the states Moreover the rank gap between Kerala and Gujarat of Kerala and Gujarat in its socio-economic sectors economies has also been widened in favour of Gujarat. Thus it is clear from the table 1 that 2) To compare and contrast Kerala and Gujarat Gujarat has been transformed to be a major Models of development economic power in India in early 2000s and it is able to sustain its standing at 4th major state 3. Research Methods economy since 2005-06. Figure 1 also shows this This is a comparative study in which two unprecedented growth of Gujarat economy since sides or perfections and imperfections of the two 2005-06 well above Kerala economy. Dholakia models of development were brought in. Secondary (2007) observes that Gujarat has been a frontline data were reaped extensively from various state ever since the accelerated economic reforms governmental agencies such as National Sample began in India in 1991-92. He asserts that Gujarat Survey Organization, Ministry of Finance, Kerala by now has a very well diversified and dynamic State Planning Board, Department of Economics structure of the economy with a large and and Statistics, Gujarat and National Crime Records expanding industrial sector, a high degree of Bureau and less from non-governmental agencies. commercialized agriculture and allied activities, Total, percentage, ratio and ranking were employed and a relatively large degree of urbanization. The widely in the study and tables and diagrams were active private participation and emergence of plotted in the report. entrepreneurs have contributed for this phenomenal growth. Wherein the status of Kerala is entirely 4. Kerala-Gujarat Models of Development: different as it was never been a major economic Sector-wise Analysis power in India. Although Kerala’s NSDP at current price The accomplishments in various socio- is far below to Gujarat especially since economic economic sectors made by the states of Kerala and reforms initiated in nineties, Kerala is just below to Gujarat are brought under discussion here. Gujarat in the case of per capita NSDP at current

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in price. Gujarat was 6th in terms of per capita NSDP capita NSDP shows its inclusive nature of in 1980-81 with Rs. 2,089 while Kerala was at 7th development while that of Gujarat is more with a lower Rs. 1,835. With small fluctuations exclusive as its phenomenal economic growth in mid-way Gujarat finished at 6th itself in 2013-14 the current decades has never been accompanied by while Kerala at 7th. The betterment of Kerala in per respective growth of per capita NSDP. Table 1: Size of the state economies of Kerala and Gujarat and trend in GSDP and Per capita income NSDP at current price (In Rs crore) Per capita NSDP at current price (In Rs) Year Kerala Gujarat Kerala Gujarat 1980-81 4,631 (10) 7,076 (7) 1,835 (7) 2,089 (6) 1985-86 7,878 (10) 13,081(8) 2,918 (7) 3,468 (6) 1990-91 12,173 (11) 26,133 (7) 5,110 (10) 6,343 (5) 1995-96 35,330 (11) 62,017 (6) 11,469 (7) 13,665 (5) 2000-01 63,094 (10) 92,110 (6) 19,463 (6) 19,228 (7) 2005-06 120,269 (8) 206,440 (4) 36,958 (5) 37,780 (4) 2010-11 233,177 (9) 454,853 (4) 69,943 (8) 77,485 (6) 2013-14 351,245 (10) 651,916 (4) 103,820 (7) 106,831 (6) Source: Economic Survey published by Ministry of Finance (various years) & Author’s calculation Note: Figures in brackets are denoted as ranks among Indian states

700,000

600,000

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100,000

0 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2010-11 2013-14

NSDP of Kerala NSDP of Gujarat

Figure 1: NSDP at current price of Kerala and Gujarat (In Rs. crores) 4.1.2 Agricultural development: Gujarat’s Agriculture and allied sector plays an important sustained growth & Kerala’s declining share role in the State economy. Swain, Kalamkar and Kapadia (2012, pp. 4-5) state that ‘though Table 2 reveals that primary sector of contribution of agriculture in NSDP has gradually Kerala and Gujarat economies responded declined from around 50 per cent during 1970s to differently to economic reforms. Though Gujarat around 21.6 per cent in 2010-11, agriculture still was able to maintain a pretty balanced sector-wise considered as a backbone of Gujarat state development over a period of two decades with economy. More than half of the working about one-fourth of state income come from population in the state is still dependent on agriculture and allied sectors and one-third from agricultural activities for their livelihood and it industrial sector, Kerala agriculture witnessed forms resource base of agro-based industries in the significant breakup. Contribution of primary sector state’. Even though half of Kerala’s working of Kerala declined sharply from 33.1 per cent in population also resort to agriculture and allied 1993-94 to mere 12.9 per cent in 2013-14.

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in activities, Kerala agriculture suffers from serious operational holdings, shortage of farm labourers, drawbacks. It puts threat over sustainability of the high price of land and large-scale conversion of famed inclusive growth model of Kerala. As agricultural lands for other uses are some of the pointed out by Thomas (2004, p. 156), declining vital current problems that impair the state’s profitability of crops, uneconomic size of agricultural development.

Table 2: Contribution of primary and secondary sectors to GSDP at constant price (In percentage) Year Kerala Gujarat All India Primary Secondary Primary Secondary Primary Secondary 1993-94 33.1 24.73 25.5 35.8 28.0 25.3 2013-14 12.9 25.11 22.1 36.6 18.0 24.8 Source: Kerala Economic Review published by Kerala State Planning Board & Socio-economic Review published by Directorate of Economics and Statistics, Govt. of Gujarat (various years) 4.1.3 Industrial development: Gujarat’s success backwardness, even economic reforms have never story & Kerala’s painful experience helped the state to flourish investment and industrial production. Mani (2014, p. 174) states Gujarat is an industrially sound state that Kerala attracted very little industrial unlike Kerala with the large inflow of investment investments since the onset of economic reforms. and abundance of entrepreneurs. More than one- Mani (2014, p. 175) added that ‘foreign companies third of the state income of Gujarat come from too have shied away from the state and according industrial sector with 35.8 per cent in 1993-94 to recent data from the Secretariat of Industrial marginally increased to 36.6 per cent. It is an Assistance, Kerala has attracted only 981 million impressive contribution from this sector while both dollars of FDI equity inflows which works out to India and Kerala bag just one-fourth of the income about 0.5 per cent of FDI (cumulatively during over a period of years. Although the economic April 2000 to through March 2014), that has come reforms introduced in 1991 elevated the industrial to rest of India.’ production and GSDP growth, industries in Gujarat have had a strong base. Gujarat has registered an 4.1.4 Infrastructure development for sustained impressive industrial development since its growth formation as a separate state in 1960 (Institute of Small Enterprises and Development (ISED), 2013). The importance of infrastructure for ISED report (2013) observes that the initiatives sustained economic development is well such as judicious exploitation of natural resources recognized (KSPB, 2016). ‘Direct investment on like oil and gas, minerals, agriculture and animal infrastructure creates (i) production facilities and wealth, establishment of strong institutional stimulates economic activities; (ii) reduces network, creation of infrastructure required for transaction costs and trade costs improving industries and offering of incentive schemes by the competitiveness and (iii) provide employment government have helped Gujarat to emerge as a opportunities to the poor. In contrast, lack of highly industrialized state in India. Moreover the infrastructure creates bottlenecks for sustained state of Gujarat has obtained the label as one of the growth and poverty reduction’. (Sahoo, Dash & best states to do business and make investment. Nataraj, 2010). This confirms the need for World (2015) report shows that Gujarat tops infrastructure for growth. Moreover, Albert the list of Indian states and union territories on the Hirschman in his ‘unbalanced growth model’ basis of implementation of reform policies for argues that deliberate unbalancing through making easing the business and investment with 71.14 per investment in social overhead capital will follow cent. At-once Kerala with the implementation rate private investment in direct production activities. of mere 22.87 per cent is far behind Gujarat and many other major states in purveying facilities for 4.1.4.1 Power sector: Gujarat is clearly the power business and corroborating economic growth. This house of India with 16 per cent of India’s installed strengthens the ambiguity over the sustainability of capacity while that of Kerala is nominal with mere Kerala Model. The state of Gujarat is one of the one per cent in 2015. The Kerala power sector is highly industrialized states in India with its being congested presently by some serious hurdles reputation of being a highly investor-friendly state such as inadequate production, over dependence on (Directorate of Economics & Statistics (DES), hydro power still and less dependence on 2015). On the other side, though Kerala economy renewable resources. At the same time, Gujarat was struggled hard to recover from its chronic industrial able to be at first in India with highest electricity

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in generation capacity relying heavily on thermal power was generated from hydel projects. Gujarat power (75.25%). Kerala’s excessive dependence on with the commendable share of 11.34 per cent was hydel power (73.41%) evinces its necessitude of able to diversify its power generation capacity to depending traditional sources of energy heavily. the renewable resources such as wind, tidal and Declining monsoon, and humane and solar energy while mere 1.24 per cent of Kerala’s environmental problems attributed to reservoirs installed capacity was from it. (Table 3). Shortage outface crisis in power generation from hydro- of power is the prime obstacle in starting new projects in Kerala and other states. Its incidence industrial units in Kerala (KSPB, 2016). will be heavily on Kerala where three-fourth of the

Table 3: Total installed electricity capacity in Kerala & Gujarat as on 31.03.2015 (In percentage) Fuel Percentage Kerala (2836 MW) Gujarat (40950 MW) India (278734 MW) Thermal 25.35 75.25 69.6 Hydro 73.41 11.68 15.2 Nuclear 0 1.73 2.1 Renewable resources 1.24 11.34 13.1 Total 100 100 100 Source: Kerala economic review 2015 & Socio-economic review of Gujarat Note: Figures in brackets show total production capacity in mega watt

4.1.4.2 Status of public road network: Bhagwathi advantage in case of national highways with the per and Panagariya (2012) agree that the need for capita availability of 5.4 cm while it is 4.56 in building multilane highways and all-weather rural Kerala. The length of state highways in Gujarat is roads is well recognized in the twenty first century. clearly in front of Kerala with per capita Kerala has a huge road network of 243,374 availability of 30.65 cm while it is even lower than kilometers with per capita availability of 7,300 half of it in Kerala. The situation drifts as moved to centimeters or 73 meters road length (KSPB, major district roads where Kerala had clearly 2014). While the total road length in Gujarat in advantage with the per capita availability of 822.73 2012-13 except non-plan, community, urban and cm length while it was mere 338.93 in Gujarat. project roads is 78,558 km with the per capita (Table 4). All these evince that Kerala which has availability of mere 1,230 cm or 12.3 m (DES, huge rural road network is really in front of 2015). As different from this, Gujarat has a little Gujarat. Table 4: Distribution of major road networks (as on 31-03-2013) State NHs SHs Major District Roads Km Ratio* Km Ratio* Km Ratio* Gujarat 3,262 5.4 18,506 30.65 20,466 338.93 Kerala 1,524 4.56 4,342 13 27,469 822.73 Source: Kerala State Public Works Department & Socio-economic review of Gujarat Note: NHs= National highways, SHs= State highways, Km= kilometers * Per capita availability of road network in centimeters (Road in km/population x 1,000,000) Urban, other district, village and other roads are exempted due to lack of uniformity in both state 4.2 Social Sector Development economic growth is more or less an automatic process, development is definitely not. A primary Kerala-Gujarat Models were also being conclusion in development economics is that discussed on social development where Kerala has development which is a broad concept will be generally an edge. ‘Kerala’s development and followed by growth only which is measured by achievements on social front has been lauded in output only and development without growth is both national and international circles. The impossible. This has been duly questioned in progress made in the realm of education, health and Kerala development paradox where so called gender development have been noteworthy’ economic growth of Kerala economy was argued to (KSPB, 2016, p. 203). Social sector development attain at the backing of capabilities generated in the which cannot be completely measured by digits population through a set of freedoms. But the need some deliberate policy efforts. Though

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in above conclusion has been clarified by Bhagwati in and Panagariya who use to criticize Sen who case of Gujarat where large investment in praises this gender equity of Kerala are silent on production sectors is bringing desirable changes in less gender gap in Kerala and excessive gap in its social sectors. Under this section, we examine Gujarat. It is not mere owing to the historical the standings of the two states in education and advantage of Kerala in literacy as prescribed by health sectors, women, child and old age care, Bhagwathi and Sen. The table 5 reveals that though crime rate, and mental strength in the states of there was 20 per cent gap in the literacy of men and Kerala and Gujarat. women in 1961, Kerala managed to lower it to 4.2.1 Education mere 4 per cent in 2011. At the same time Gujarat with 28 per cent excess of male literacy lowered to 4.2.1.1 Literacy: Desirable and phenomenal mere 16.5 per cent. educational outcomes played key role in molding well known Kerala Model. Table 5 shows that 4.2.1.2 Dropout ratio: Kerala has achieved the Kerala has advantage in all major education distinction of having the lowest dropout rate of indicators such as literacy, dropout and schooling. school students among the Indian states (KSPB, While Kerala is at first among Indian states and 2016). As shown in table 5, in the year 2013-14, union territories in adult literacy with 93.91 per dropout ratio among school students in Kerala was cent, Gujarat is far behind at 18th with 79.31 per 0.27% while that of Gujarat is 6.91. cent but well above the national average of 74 per 4.2.1.3 Schooling years: Mohanty and Dehuri cent. At that Bhagwathi and Panagariya (2012, (2012) in their joint study for International Institute p.86) reminded that ‘Kerala began with a huge for Population Studies (IIPS), calculated advantage in literacy over the rest of the country at the average and expected years of schooling for the independence. Since then it is hard to find anything Indian states. They found that Kerala is on top with spectacular or unique in outcomes in Kerala’. 2nd place in mean and expected years of schooling. Although some statistics justify this argument, the While Kerala is at 2nd just after in mean years spectacular outcomes appropriated by Kerala in of schooling with 7.64 years and 2nd after Himachal literacy cannot be undermined or neglected. It is Pradesh in expected years of schooling with 11.74 clear from the table 5 that both Kerala and Gujarat years in 2005-06, Gujarat is far behind at 12th and gained 40 per cent rise in adult literacy in 50 years 18th in India respectively with 5.34 mean years and from 1961 to 2011. While literacy ratio rose from 9.14 expected years of schooling. (Table 5). 55.08 per cent in 1961 to 93.91 in 2011, Gujarat 4.2.1.4 Presence of top universities: Although managed to elevate the ratio from 39.33 per cent to achievements made by Kerala in higher education 79.31 per cent. In fact growth of these two states in is not appreciable unlike in primary level literacy in the same period are less to India which education, 7 universities or university level has managed to lift the ratio from mere 12.95 per institutions were able to find place among cent to 74.04 by gaining 61 per cent. Nonetheless, Webometrics ranking of top 100 Indian universities Kerala achieved the status of first state or union with relatively smaller higher education system territory to attain total literacy. According as, while Gujarat with larger education system was just gender gap in literacy is minimum in Kerala with managed to get 6 higher education institutions in mere four per cent in 2011 while it is 16.5 per cent the list (Table 5). in Gujarat and 17.70 per cent in India. Bhagwathi

Table 5: Education indicators Education Indicators Kerala Gujarat India

I II I II I II

Adult literacy 55.08 93.91(1) 39.33 79.31(18) 12.95 74.04 Female literacy 45.56 91.98(1) 24.73 70.73(20) 5.05 65.46 Male literacy 64.89 96.02(2) 53.00 87.23(15) 19.75 82.14 Dropout ratio - 0.27 - 6.91 - - Schooling* - 7.64(2) - 5.34(12) - 4.83 Schooling** - 11.74(2) - 9.14(18) - 9.00 Top universities*** - 7 - 6 - - Source: Census India, Kerala economic review, Socio-economic review of Gujarat, IIIPS Working paper 2012 & Webo metrics ranking of universities

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Note: Literacy is given as per Census 1961 & 2011, dropout ratio in 2013-14, schooling years in 2005-06 Literacy & dropout ratio are denoted in percentages * Mean years of schooling, ** Expected years of schooling, *** No. of top 100 universities/university level institutions in India Figures in bracket show ranking among states & union territories Some columns are left blank as the data was not available

4.2.2 Health scenario Kerala, lies little above the national average in all major health indicators. Kerala managed to be at Achievements in health sector played a first with mere 12 infant deaths per 1000 live births major role in molding Kerala Model. The data in 2013 while it is 36 and 40 in Gujarat and India shows that Kerala is first in all major health respectively. At that Gujarat was able to minimize indicators. As argued by Panagariya and Bhagwathi the infant mortality from 69/1000 to 36/1000 in 23 (2012), Kerala which made tremendous outcomes years. Regional disparity in health sector can be in health and education sectors had historical seen clearly in maternal mortality rate. With high advantage in all these indicators. Kerala ranks first class medical care Kerala subsided it to 81 per lakh in India in all major health indicators such as life live births in 2013 while it is larger 148 in Gujarat expectancy at birth (total, male and female), infant and 212 in India. The thing accords Gujarat the mortality rate, maternal mortality rate, fertility rate consolation even in this stage of health and birth rate. Life expectancy of Kerala which is backwardness is the reduction in rate of maternal 74.8 years in 2013 is much better than that of mortality. Gujarat reducing 241 maternal deaths per Gujarat and India where it is 68.2 and 67.5 lakh live births managed to bring down maternal respectively and very much comparable to that of mortality rate from 389 to 148. As far as Kerala is US which is 77. Though female life expectancy has concerned, it also reached a level of maturity in all an edge over the male commonly, Kerala has major health indicators. Fertility rate in Kerala clearly an edge in it with 6 years. Better maternal though not ranked first is also lower i.e. 1.8 in 2013 care reflected in lowest maternal mortality rate i.e while it is higher in Gujarat with 2.3 similar to 81 per lakh live births and tremendous health national rate. Family planning campaign, high infrastructure both at public and private sectors literacy and high health awareness have really put have brought female life expectancy to 77.8 while down the fertility rate. According as, birth rate is it is 70.5 in Gujarat and 69.3 in all India level. lowest in Kerala with 14.7 per 1000 population in Within a period of 23 years from 1991 to 2013, 2013 while it is pretty higher in Gujarat and India female life expectancy of Kerala improved by 5.8 with 20.8 and 21.4 respectively. Although fertility years while male life expectancy increased by mere rate is lowest in , , Punjab 2.8 years. Similarly, female life expectancy of and , birth rate of these states are Gujarat climbed by 5.9 years in 23 years while little higher than Kerala. Nonetheless death rate of male life expectancy climbed by 3.6 years. Even Kerala is little higher than Gujarat i.e. 6.9 per 1000 though this was a little high of Kerala, the fact is population in 2013 increased from 5.8 in 1991 that it also Kerala has already got through the while that of Gujarat and India 6.5 in 2013 twilight of maturity while Gujarat and other Indian subsided from 8.5 in 1991 and 21.4 in 2013 states are struggling to clutch this stage of exalted subsided from 30.5 in 1991 respectively. (Table 6). standard. Gujarat though lies extremely below

Table 6: Health indicators Health indicator Kerala Gujarat India

1991 2013 1991 2013 2013 Life expectancy 70.6 74.8 n.a 68.2 67.5 Life expectancy (female) 72 77.8 64.4 70.5 69.3 Life expectancy (male) 69 71.8 62.4 66.0 65.8 Infant mortality/1000 live births 17 12 69 36 40 Maternal mortality/lakh live births 133 81 389 148 212 Fertility rate n.a 1.8 3.1 2.3 2.3 Birth rate (per 1000 population) 19.8 14.7 27.5 20.8 21.4 Death rate (per 1000 population) 5.8 6.9 8.5 6.5 7.0 Source: Economic Survey 2015, Kerala economic review, Socio-economic review of Gujarat

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

4.2.3 PQLI of Kerala & Gujarat: Physical quality Pradesh ranked 4th are the states with decent per of life index (PQLI) of Kerala which measures only capita income in the country. Similarly the states major social development indicators such as such as Madhya Pradesh, , , literacy, life expectancy and infant mortality is Bihar, and Assam lie at the bottom of the highest in India with 92.64 in 2013 while it is mere list of states ranked by PQLI are with lower per 77.1 in Gujarat. At the same time India’s national capita income in the country. Thus the income has index is 73.88 even lower than Gujarat. It is clear more or less impact on improving the life quality from the table 7 that high income states like despite of the argument of Bhagwathi and , Tamil Nadu and Punjab came in top 5 Panagariya (2012) that these social outcomes are states. At that the Gujarat shared 7th rank with the result of high income realized. . Kerala ranked first and Himachal Table 7: Physical quality of life index* of major states (in 2013) Rank State Index 1 Kerala 92.64 2 Maharashtra 83.39 3 Tamil Nadu 82.29 4 Himachal Pradesh 80.99 5 Punjab 80.62 6 West Bengal 78.67 7 Gujarat 77.1 7 Karnataka 77.1 9 Jammu & Kashmir 76.28 10 74.82 11 Andhra Pradesh 72.1 12 70.74 13 Rajasthan 69.78 14 Bihar 69.56 15 Assam 66.57 16 Uttar Pradesh 66.36 17 Madhya Pradesh 66.05 All India 73.88 Source: Author’s calculation Note: * PQLI= Literacy rate + Indexed infant mortality rate + Indexed life expectancy/ 3 INDEXED Infant Mortality Rate = (166 - infant mortality) × 0.625 INDEXED Life Expectancy = (Life expectancy - 42) × 2.7 4.2.4 Women & child care down in ensuring safety to its mother community. Crime rate against women in Kerala is 62.43 in The statistics released by National Crime 2013 while that of Gujarat is lower i.e. 42.63. Records Bureau (NCRB) shows that encroachment While crime rate in Kerala is clearly above the and incursion on women is common in India. national rate 52.24, Gujarat’s crime rate is clearly Kerala Model praised on women centered below that. Kerala blessed with its top level social development shown by female dominated sex ratio, outcomes stands at deplorable 22 among Indian enrolment in higher education and life expectancy states. Gujarat’s status is little better in it with 15th comparable to developed countries is entirely set rank. Table 8: Crime against women during 2013 Category Kerala Gujarat All states All India Crime rate 62.43 42.63 50.86 52.24 Rank 22 15 - - Source: Author’s calculation from National Crime Records Bureau report ‘ 2013’ Note: Crime rate against women= Incidences of crime against women/Female population x 100,000 Rank is measured as per lower number of incidence-higher rank basis

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Figure 1 (A & B) shows the incidences of crime cruelty by husband or his relatives in Gujarat. against women in Kerala and Gujarat. Total of Second largest crime against women in Gujarat was 11,216 incidences were reported in Kerala during kidnapping and abduction of which 2230 2013 of which 4820 and 4362 (82%) were cruelty incidences were reported (18%) while it was mere by husband or his relatives and assault on women 185 incidences (1.6%) in Kerala. Though assault on to outrage her modesty respectively. Rape with women to outrage her modesty was the second 1221 incidences constitute more than 10 per cent of largest crime in Kerala with 4362 incidences total crimes against women. At the same time, 64 (39%), it was the third largest in Gujarat with 10 per cent of total crimes against women (7812) were per cent.

Figure 1 (A) Figure 1 (B) Figure 1 (A): Incidence of crimes against women in Kerala during 2013 Figure 1 (B): Incidence of crimes against women in Gujarat during 2013 Source: Author’s calculation from National Crime Records Bureau report ‘Crime in India 2013’ 4.2.4.1 Crime against children: NCRB report 9). While kidnapping and abduction was the major compels the refined people of Kerala to hang their crime against children in Gujarat, rape was head. Kerala with 20.22 crime rate against children reported to be the largest crime in Kerala (NCRB, stands at 24th rank among Indian states in 2013 2014). Thus it is clear that kidnapping and while that of Gujarat was at 13rd with just 10.16 abduction was reported to be an important crime in even lower than the national rate of 13.23 (Table Gujarat both against women and children. Table 9: Crime against children during 2013 Category Kerala Gujarat All states All India Crime rate 20.22 10.16 11.69 13.23 Rank 24 13 - - Source: Author’s calculation from National Crime Records Bureau report ‘Crime in India 2013’ Note: Crime rate against children= Incidences of crime against children/child population x 100,000 Rank is measured as per lower number of incidence-higher rank basis

4.2.5 Mental strength education standards was at 27th among the Indian states and 32nd among states/union territories with Mental strength better judged by suicide the suicide rate of 23.9 during 2014 while Gujarat rate shows the strength of development models with the suicide rate of 11.7 little above the also. Kerala blessed with top level health and national average of 10.6 was at 15th among states.

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Table 10: Suicidal deaths during 2014 Category Kerala Gujarat All India Suicide rate* 23.9 11.7 10.6 Rank 27 15 - Source: NCRB report ‘Crime in India 2014’ Note: * Suicide rate: = Number of suicidal death/lakh population Rank is measured as per lower rate of incidence-higher rank basis

4.3 Major development issues: Poverty & argument that Kerala achieved superior outcomes unemployment with respect to poverty, health and education with low per capita income and poor growth 4.3.1 Poverty performance. They (p. 89) state that ‘high Poverty is reckoned as the most achievements of Kerala in poverty alleviation, commonly accepted indicator of health and education are associated with high, not underdevelopment. It is a global phenomenon low, per capita incomes and expenditures. Though Kerala ranked first in case of low poverty ratio, which has many faces and dimensions. The lowest th poverty ratio of 7.05 per cent in 2011-12 is a Gujarat is at 14 among Indian states with a higher golden feather in the beautiful Kerala Model. 16.63 per cent but lower than the national ratio of Bhagwathi and Panagariya (2012) contradict the 21.92 per cent as per Tendulkar Methodology. (Table 11). Table 11: Poverty & unemployment (In 2011-12) Category Kerala Gujarat All India Poverty Rate 7.05 16.63 21.92 Rank 1 14 - Unempt Rate* 98 (41, 232) 7 (6,7) 29 (26,39) Rank 26 1 - Source: National Sample Survey Office 68th Round & Planning Commission 2013 Note: * Unemployment rate per 1000 (male-female unemployment in brackets)

4.3.2 Unemployment 5. Ranking of Kerala and Gujarat in various socio-economic indicators at a glance The biggest paradox in the Kerala-Gujarat Models can be seen in unemployment and poverty. The data codified in the table 12 shows the While Kerala is the state with lowest poverty ratio paradoxes in the Kerala-Gujarat development in the country, it is amongst the states with highest models. It reveals that no ‘Model’ has advantage in unemployment rate of 98 per 1000. Similarly, all socio-economic indicators. While Kerala has Gujarat is the state with lowest unemployment in some advantage in some indicators, Gujarat has in the country, it ranked mere 14th among the states in others. Though Kerala has advantage in health and 2011-12. This is not the most notable issue in the education indicators, it lies at the bottom in the paradox of Kerala Model. The NSSO 68th round ranking on unemployment, crime rate against both shows that Kerala has highest gender disparity in women and children and suicide rate while Gujarat unemployment with 232 females per 1000 are has advantage in these indicators. Nevertheless unemployed as per usual status in 2011-12 while Kerala is at top in the ranking on poverty, literacy, 41 males are also unemployed. In Gujarat, both life expectancy, infant mortality, schooling years gender disparity in unemployment and and fertility. Achievements of Gujarat in unemployment rate are minimum in the country. agricultural and industrial sectors on which it has clearly an advantage could not be included due to the complexity in accessing data.

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Table 12: Ranking in various indicators (In 2013) Sl No. Indicator Kerala Gujarat 1 Per capita NSDP at current price 7 6 2 Poverty ratio* 1 14 3 Unemployment rate* 26 1 4 Literacy rate 1 18 5 Life expectancy 1 9 6 Infant mortality rate 1 8 7 Mean years of schooling** 2 12 8 Expected years of schooling** 2 18 9 Death rate 5 3 10 Fertility rate 3 7 11 Crime rate (against women) 22 15 12 Crime rate (against children) 24 13 13 Suicide rate*** 27 15 Source: From earlier tables & Economic Survey 2015 Note: Ranking among Indian states * As per data in 2011-12, ** as per data in 2005-06, *** as per data in 2014

6. Concluding Remarks women and children and suicide rate in Gujarat are lower too. Although Kerala Model and Gujarat Model are contradictory to each other, both are States of Kerala and Gujarat are more or inevitable models of the country. While Kerala has less ahead of national average in various socio- advantage in some sectors, Gujarat has advantage economic indicators of development. It depicts in some other sectors. Obviously both models are obviously the real picture of under-developed India different approaches to development. Gujarat, a which consists of BIMARU states which are high income state in the country is a step ahead to flagrant for deplorable performance in many Kerala in income per capita. Gujarat’s process and indicators. However Gujarat and Kerala are even progress in agricultural and industrial sectors have below the national average in some indicators. really erected it to the top income generating states. While Kerala and Gujarat are above the national Decent and constant share of these sectors to NSDP rate in case of suicide rate, it’s only Kerala which of Gujarat economy demarcated it from Kerala. But stands behind India in cases of unemployment rate Kerala has really done well in improving its per and, crime rate against women and children. capita NSDP. Unlike Gujarat, Kerala economy Starting with decent figures Kerala gets at the stage really suffered from diminishing share of of exquisite maturity in health and education while agriculture and stagnant share of industries. Gujarat starts from a lower level and pass by better standards of health and education. However, commonly accepted fact is that superior education and health outcomes have really References distinguished the Kerala Model from Gujarat Model. Kerala happened to be the real ‘model’ for 1. Bhagwathi, J. (2013, Jan 2). Gujarat all states and showed its humanistic face of promises continued, accelerated and all- development with its incredible performance in round development. Retrieved-from- health and education indicators which are reflected http://articles.economictimes.indiatimes.c as lowest poverty ratio, infant mortality rate, om/2013-01 02/news/36111596_1_kerala- maternal mortality rate and drop out ratio, and model-gujarat-model-social-indicators highest literacy, life expectancy, sex ratio, women- 2. Bhagwathi, J. & Panagariya, A. (2012). enrolment ratio in higher education and schooling India’s tryst with destiny: Debunking years. At the same time, Kerala which has been myths that undermine progress and praised on its enviable accomplishment in social addressing new challenges. Noida, India: sector is subjected to severe criticism owing to Collins Business. ascended crime against women and children, and 3. Dholakia, R.H. (2007). Sources of suicide. Gujarat with high income and power economic growth and acceleration in generation capacity shows its strength and Gujarat. Economic and Political Weekly, advantage over Kerala economy. Crime rate against 770-779. 4. Directorate of Economics and Statistics. (2015). Socio-economic review 2014-

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2015 Gujarat state. , India: DES. 5. Institute of Small Enterprises and Development. (2013). Gujarat micro, small & medium enterprises report 2013. Cochin, India: ISED. 6. Kerala State Planning Board. (2016). Economic review 2015. Thiruvananthapuram, India: KSPB. 7. Mani, S. (2014). Industrial investments in Kerala, trends, constraints and future prospects. The Journal of Industrial Statistics, 3(2), 169-178. 8. Ministry of Finance. (2016). Economic survey 2015-16. New Delhi, India: MoF. 9. Mohanty, S.K & Dehuri, B. (2012). Human development indices: Old and new. International Institute for Population Studies working paper. Mumbai, India: IIPS. 10. National Crime Records Bureau. (2014). Crime in India 2013. New Delhi, India: NCRB. 11. National Sample Survey Organization. (2013). Key indicators of employment and unemployment in India, NSS 68th round. New Delhi, India: NSSO. 12. Planning Commission. (2013). Press notes on poverty estimates, 2011-12. Retrieved from http://planningcommission.nic.in/news/pre ss_pov2307.pdf 13. Sen, A. (2013, July 22). Gujarat growth model (Video file). Retrieved from https://www.youtube.com/watch?v=9kzL mw2EPBQ 14. Swain, M., Kalamkar, S.S. & Kapadia, K.M. (2012). State of Gujarat agriculture 2011-12. Agro-Economic Research Centre (AERC) Report: , Vallabh Vidyanagarm India. 15. Thomas, P.M. (2004). Agricultural Performance in Kerala. In B.A. Prakash (Ed.), Kerala’s economic development: Performance and problems in the post- liberalization period. (pp. 141-164). New Delhi, India: Sage Publications. 16. Thompson, J. (2010). Prioritizing approaches to development in New England: Skills, infrastructure, and tax incentives. Political Economy Research Institute, University of Massachusetts, Amherst.

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