27 January, 2021

Who Moved The Rotten Cheese?

An old economy favourite till yesterday, Gujarat has suddenly become an investor's nightmare

Who Moved The Rotten Cheese?
outlookindia.com
-0001-11-30T00:00:00+05:53
Till two months ago, it was one of India’s fastest growing states with the distinction of attracting the largest and best investments from Indian and multinational firms, of having the finest business environment. Not any more, not since February 27.

Today, business is far from usual, production at an unbelievable low, employee turnout at factories thin and business sentiments extremely negative. The February 27 Godhra atrocity and the consequent rioting have dealt a body blow that trade and industry in the state may take years to recover from.

Going by even conservative estimates, Gujarat lost business at Rs 500 crore a day. With industry at a standstill for four days, the loss amounts to Rs 2,000 crore. Add to that the losses due to lack of transportation for products, and new orders, and the figure goes beyond any reasonable calculation. And the impact will be felt across India because in many ways, the performance of industry in Gujarat affects the nation’s overall economic performance.

Even though the state has only 5 per cent of the country’s...

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