Gujarat hopes to achieve a growth rate of 15% by 2013 - A 'vibrant' approach

Galaxy

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With its "Vibrant Gujarat" campaign and an aggressive industrial policy, the State hopes to achieve a growth rate of 15 per cent by 2013.


Volume 29 - Issue 06 :: Mar. 24-Apr. 06, 2012



Nano cars outside the Tata Motors plant in Sanand.

GUJARAT has had for some time the extremely focussed goal of achieving high growth in the industrial and infrastructure sectors. There are of course both long- and short-term targets, but the ultimate goal is to become the top investment destination for the private sector. Although traditionally Gujarat has been at the forefront of industrial and business growth driven by a culture of entrepreneurship, in the recent past it has made a concerted effort to take its ambitions to the next level.

At several conferences and summits on business, State officials have declared that they aspire not only to make the State number one in the country but also a competitive player on the global stage.

The State has extended an open invitation to corporates looking for an investment destination and is doing whatever it can to ensure that they make it their first choice for setting up manufacturing or service units. The government has, among other things, reworked policies and vastly upgraded infrastructure.

Gujarat is believed to have one of the fastest-growing economies in India. It is also one of the most industrialised States, with 38 per cent of its gross domestic product contributed by the secondary sector (finished manufactured goods). Its per capita GDP is almost twice the national average.

When the Gujarat government released its industrial policy for 2009-13, the stated aim was an ambitious 15 per cent growth in that period. Last year it registered a growth rate of 11.05 per cent and looks to be on course to achieve its target.


AT A TEXTILE mill at Jhagadia village in western Gujarat.

Key drivers

A good industrial and manufacturing foundation, adequate investment and infrastructure and sound policies are some of the factors that have driven growth in the State over the years, and these are now being exploited to their utmost capacity.

According to a report by the Confederation of Indian Industry, titled "Accelerating Growth in Gujarat", the State occupies a distinctive position in the country's economy. Sixteen per cent of India's industrial production is in Gujarat and the State's main strengths lie in petroleum, drugs and pharmaceuticals, and the diamond industry.

Since it has a robust foundation in industry, it has been able to attract significant investment, including foreign direct investment (FDI).

Gujarat is one of the most urbanised States in the country, with nearly 40 per cent of the population residing in urban areas. Therefore, the State's demographics have had a positive influence on industrial growth and is one of its most valuable assets. Besides, competitive labour costs add to the State's overall productivity.

The State has five of the country's top postgraduate institutes and has emerged as a key educational hub. The government has been vocal about the need for public-private partnerships in education. The knowledge industry is an area it is keen on improving.

These key drivers were clearly defined in the "Vibrant Gujarat" campaign launched in 2009 to showcase the State. The campaign seeks to make Gujarat a global power by 2015. The government has come out with an aggressive action plan that offers industry-specific advantages in a slew of sectors.

The campaign also outlines the advantages of Gujarat's strategic location on the west coast. Connectivity is easy with major ports in the United Kingdom, Australia, and those of the West Asian and East Asian economies.

Gujarat has 41 ports and offers numerous opportunities for port-based industries. According to the government, ports in Gujarat handled 205 million metric tons of cargo traffic in 2009-10, and this is expected to increase to over 500 MMT in two to three years. Around 22 per cent of Indian exports are contributed by Gujarat, says the State government.

Gujarat's contributions to various sectors are as follows: close to 80 per cent in salt processing and diamond processing, 35 per cent in pharmaceuticals, 50 per cent in chemicals, 62 per cent in petrochemicals and 65 per cent in plastic industry. Gujarat, more specifically Surat, can easily be called the diamond processing capital of India.

Excellent infrastructure

The State attracts investment because of its excellent infrastructure: a 1,37,617-kilometre road network, a 5,188-km rail network and a 2,200-km integrated State-wide gas grid (the only State to have one). It has more airports and ports than any other State.

It is a power-sufficient State as it has 23 power plants and the highest per capita power consumption.

The Sardar Sarovar project on the Narmada river is expected to provide water to areas across the State.

Gujarat is the hub of the chemical industry in India. More than 6,600 chemical and petrochemical products are produced in the State.

Gujarat contributes 53 per cent and 31 per cent respectively to India's total production of crude oil and natural gas. It has the highest number of gas wells in India, making it an easy choice for global petroleum companies.

In the engineering sector, there are more than 30 industrial clusters and this number is increasing. With Tata Motors setting up its Nano plant in Sanand and Mahindra & Mahindra in talks to set up a factory close to Ahmedabad, the State is being endorsed by the auto industry.

The food and agro sector is being given a boost. Out of the total geographical area of 196 lakh hectares, the total cropped area is 128 lakh ha.

There are huge investment opportunities in the mining and mineral sector as the State is looking to add capacity in the sector. Gujarat has one of the highest reserves of lignite, limestone, perlite and clay deposits in India and is the only producer of chalk and agate in the country. There are 6,500 mineral-based industries in the State.

Historically, Gujarat has housed the pharmaceuticals sector: It has more than 50 biotechnology companies and 66 support organisations.

Another major industry in the State is textiles. The State produces a lot of cotton and denim. Technical textiles is an emerging area, and there are over 860 units catering to it, says the government.

An extensive plan to attract investment was put in place with the release of the 2009-13 industrial policy. The government has made a concerted effort to simplify the procedures to set up businesses or to support existing ventures. A single-window approach for investors has been a move that has worked successfully.

The industrial policy will focus on human resource and assures institutions of support as the government believes that this has a ripple effect. Businesses will benefit by tapping into these resources and will in turn provide more employment.


A VIEW OF Essar Oil's refinery at Vadinar in Jamnagar district.

Special investment regions

The Delhi-Mumbai Industrial Corridor (DMIC) area, which is to be developed as a "Global Manufacturing & Trading Hub" in two phases, will be supported by world-class infrastructure and an enabling policy framework. Twelve special investment regions, with an area of more than 100 square km, are being planned.

A petrochemical and petroleum investment region, 60 special economic zones and the existing 200 industrial areas will create opportunities across sectors. There are plans to develop new industrial areas for agro parks, tourism, recreation, and information technology.

The industrial policy states: "Gujarat aspires to become a beacon of comprehensive social and economic development." The State definitely has a bright future ahead of it.

A ‘vibrant' approach
 

Mad Indian

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Ban Modi.. This idiot is ruining the country with his Communal-ism :bounce:

Come on seculars . Come on come on, wherever you are :taunt:, come out of your caves:taunt1: Come and see the Communalist at work:bounce:
 

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Food, fun & festivals

The State is reinventing its tourist destinations and launching a campaign to attract different types of tourists.


DURING THE INTERNATIONAL Kite Festival on the Sabarmati riverfront in Ahmedabad on Uttarayan, January 14.

LONELY PLANET, the world's leading travel guidebook, rates Gujarat as among "10 of the world's unsung places". Gujarat may not have been the first option of many people when it came to planning a vacation, but that may change soon. The government has decided to boost its tourism and hospitality industry by reinventing its tourist destinations and launching a campaign to attract different types of tourists.

The State has plenty to offer, so it is only a question of tapping the domestic and international tourism potential of the wide range of destinations available. There are historical sites, religious and pilgrimage sites and places where one can see wildlife. And there is an abundance of fairs and festivals through the year.

Gujaratis are known for their penchant for food; undeniably the food is unique and outstanding.

Travelling in the State is easy as it has a good infrastructure of roads, airports and railway lines.

Historical interest

The State was one of the main centres of the Indus Valley Civilisation and contains major ancient metropolitan cities from the Indus Valley such as Lothal, Dholavira and Gola Dhoro. Lothal was where India's first port was established, while Dholavira has one of the largest and most prominent archaeological sites in India. The ancient history of Gujarat was enriched by the commercial activities of these cities.

The State played a significant role in the Independence movement. Leaders such as Mahatma Gandhi, Vallabhbhai Patel, Morarji Desai and Bhulabhai Desai came from the State; Mohammad Ali Jinnah's father was also from Gujarat.

It witnessed some of the most popular Independence revolts, including the Salt Satyagraha (Dandi March) and satyagrahas in Kheda, Bardoli, and Borsad.

The Champaner-Pavagadh UNESCO (United Nations Educational, Scientific and Cultural Organisation) World Heritage site is located in Panchmahal district in Gujarat. The UNESCO website describes it thus: "A concentration of largely unexcavated archaeological, historic and living cultural heritage properties cradled in an impressive landscape which includes prehistoric (Chalcolithic) sites, a hill fortress of an early Hindu capital, and remains of the 16th century capital of the state of Gujarat." The site has begun to attract tourists interested in history.

The State is unique for its many kinds of habitats, including dry forests, majestic grasslands, wetlands, marine ecosystems and rich moist deciduous forests, which are home to some extremely rare wildlife: for instance, the Asiatic lion (in Gir), the wild ass (in the Rann of Kutch), and the great Indian bustard. The State is also home to the world's only four-horned antelope and the black buck, both protected species.

The Nalsarovar Bird Sanctuary near Ahmedabad, covering an area of 115 square kilometres, is a refuge for both domestic and migratory birds. Gujarat Tourism has a nature odyssey which includes a look-in on the 250-odd species of birds that help make this sanctuary an ornithologist's delight.


THE SOMNATH MAHADEV temple.

Religious tourism

The State has shrines dedicated to different faiths. Dwarka is considered the land of Krishna and Somnath the prime abode of Siva.

Jains consider Palitanta, a complex of more than 860 Jain temples, one of their most important pilgrimage sites.

There are Buddhist shrines at Devni Mori, Vadnagar and Talaja. Parsis, too, have had a presence in the State from time immemorial.

The State celebrates several small and big fairs and festivals throughout the year based on the traditional lunar calendar. These festivals are observed with great enthusiasm by people of all castes and religions. Travel packages that suit all budgets are on offer for every festival in the State.


THE ASIATIC LION is found only in the Gir National Park.

Kite festival

The festival of Uttarayan (Makar Sankranti), celebrated on January 14, marks the end of winter. On this day, kites are flown all over the State from dawn until late in the evening. In the night, many people flying illuminated box kites known locally as tukkals. Well-priced exotic kites available during the festival are a collector's delight. The International Kite Festival is held on Uttarayan day.

The Modhera dance festival, celebrated at the Sun Temple at Modhera, is held in the third week of January every year. At the festival, one can see classical dance as it was originally presented. The temple was built in the style of the Jain temples at Mount Abu.

Rann Utsav, which is organised to promote tourism in Kutch, is celebrated in December and January every year.

The Tourism Department offers a six-day package tour of Kutch, which allows one to experience sights and scenes unique to the region. The Bhavnath Mahadev Fair coincides with the Mahashivratri festival and is a five-day affair. It is held at the Bhavnath Mahadev temple, which is located at the foot of Girnar hill in Junagadh.

The mahapuja of Siva is held in this temple at midnight on the 14th day of the dark half of the month of Magh when it is believed that Siva himself visits the shrine. The fair is a good opportunity to buy well-priced local artefacts, clothes and idols.

Each region of Gujarat has its unique cuisine. In northern Gujarat, the food is usually non-spicy. The region is famous for its varieties of salty treats such as pathara; khaman dhokla, a salty steamed cake; and khandvi. In Kathiawar, a favourite is debra, made from wheat flour mixed with spinach, green chillies, a dollop of yoghurt and a pinch of salt and sugar. It is eaten with chhundo (a hot-and-sweet shredded mango pickle).

Yet another specialty of this region is methia masala, a dry powder made from fenugreek seeds, chilly powder and salt. The region is also known for its wide variety of pickles, which are liberally sprinkled over raw vegetables and salads and give them an especially piquant flavour.

Sugarcane, wheat, millet, peanuts, and sesame are easily available in the Saurashtra region despite its vast stretches of dry earth. Hence, pulses dominate Kathiawari food, and sweets are made of gur (jaggery).

Kutchi cuisine is simple and consists of khichdi, a main dish eaten with kadhi. Some common dishes here include khaman dhokla; doodhpak, a sweet, thickened milk confectionery; and shrikhand, a dessert made of yoghurt flavoured with saffron, cardamom, nuts and candied fruit. It is generally eaten with hot pooris.

Southern Gujarat is blessed with plenty of rainfall unlike Saurashtra. Green vegetables and fruit, therefore, dominate Surati food. No elaborate preparations and no expensive ingredients are required, yet the food tastes exotic. Popular items include a delicious vegetable concoction called undhiyoo and a tangy delicacy called paunk. Surat is also famous for its bakery products such as nankhatais, g haris and saglu baglu mithai, which are easily available in the city's bakeries and confectionery shops.

Food, fun & festivals
 

Mad Indian

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Cha, on the other day, i was happy when JJ announced the vision for 11.5% growth, thought finally i can boast of something about my state being better than Gujarat. Then this Communal Idiot MODI:)heh:) come up with this plan to make gujarat grow by 15%. Damn Him.:fu: modi

This is the reason you should not let leaders with vision, commitment and patriotism to rule the country. They will actually improve the country which is not very good for the already power corrupted morons.

Lets see what the Modi Bashers have to say here now, shall we???
 

ejazr

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Is this real GDP growth or based on current price figures?

India as a WHOLE is doing an average of 15-16% of nominal GDP growth. The forecast for India by Pranab Mukherjee for 2012-2013 is 14% (and this is because of the slowdown) according to the centre budget

What I have noticed is that people take nominal GDP growth rate for Gujarat and then compare it with real GDP growth rate for other states or even India. Ofcourse Gujarat has very strong fundamentals and it can certainly be a top performer state. But its important to compare apples with apples, not apples with bananas.

Here is some background on the Gujarat budget announcement.

Slowdown pushes Gujarat economy to single digit growth

GANDHINAGAR: Thanks to overall slowdown, the Gujarat economy is once under back to single digit rate of growth for the financial year 2011-12. Advanced estimates (AE) of Gross State Domestic Product (GSDP) at constant prices (base 2004-05), made available from the top state corridors of power on Friday soon after the state budget, said the state economy is slated to grow by 8.2 per cent this year after it experienced a double digit rate of growth for two years.

A senior official said, "While this shows that there is some impact of slowdown in the state economy, things are much better than the national average, which is showing signs of dipping." He added, "If agriculture has continued to do well, thanks mainly to cash crops, particularly Bt cotton, industry in the state appears to have suffered some setback despite efforts to put it up. What we have got is advanced estimate (AE). Final figures will take quite some to come."

Experts consider constant price figures of GSDP as telling the real growth rate story, as against the current price figures, quoted in the state budget documents. The current prices are calculated after setting aside the impact of inflation, which is not the case with the current prices.

Gujarat experienced the highest 14.9 per cent GSDP growth - at constant prices - in 2005-06, followed by 8.4 per cent in 2006-07, 11 per cent in 2007-08, and 6.8 per cent in2008-09. After the end of the first round of slowdown, the state experienced double digit rate of growth for the next two years. It grew by 10.1 per cent in2009-10 and 10.5 per cent in 2010-11.

Significantly, a top Gujarat government budget document, distributed on Friday, sought to give GSDP figures at current prices, which would include inflation in the economy. Officials who prepared the document said they base their calculations "only on current prices and not on constant prices."


Even then, the document, "Statement Under Gujarat Fiscal Responsibility Act, 2005," admits, at current prices the state economy registered a "nominal growth" of 15.20 per cent during 2011-12 (AE), as against 20.03 percent in the previous year. By way of comparison, the document underlines, "GSDP at current prices grew an annualized rate of growth of 16.47% over the period 2004-05to 2011-12."

It claimed, "The state has emerged as the growth engine of India and its pace of economic growth continues to be higher than the national average. The near stagnant global growth scenario with the effect of debt crisis of European countries as well as high level of domestic inflation and high interest rates, have seriously affected the Indian economy, which is witnessing a sharp decline in growth in FY 2011-12. Despite these challenges the state's economy is expected to grow by 15.20 per cent."
 

Mad Indian

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Is this real GDP growth or based on current price figures?

India as a WHOLE is doing an average of 15-16% of nominal GDP growth. The forecast for India by Pranab Mukherjee for 2012-2013 is 14% (and this is because of the slowdown) according to the centre budget

What I have noticed is that people take nominal GDP growth rate for Gujarat and then compare it with real GDP growth rate for other states or even India. Ofcourse Gujarat has very strong fundamentals and it can certainly be a top performer state. But its important to compare apples with apples, not apples with bananas.

Here is some background on the Gujarat budget announcement.

Slowdown pushes Gujarat economy to single digit growth

GANDHINAGAR: Thanks to overall slowdown, the Gujarat economy is once under back to single digit rate of growth for the financial year 2011-12. Advanced estimates (AE) of Gross State Domestic Product (GSDP) at constant prices (base 2004-05), made available from the top state corridors of power on Friday soon after the state budget, said the state economy is slated to grow by 8.2 per cent this year after it experienced a double digit rate of growth for two years.

A senior official said, "While this shows that there is some impact of slowdown in the state economy, things are much better than the national average, which is showing signs of dipping." He added, "If agriculture has continued to do well, thanks mainly to cash crops, particularly Bt cotton, industry in the state appears to have suffered some setback despite efforts to put it up. What we have got is advanced estimate (AE). Final figures will take quite some to come."

Experts consider constant price figures of GSDP as telling the real growth rate story, as against the current price figures, quoted in the state budget documents. The current prices are calculated after setting aside the impact of inflation, which is not the case with the current prices.

Gujarat experienced the highest 14.9 per cent GSDP growth - at constant prices - in 2005-06, followed by 8.4 per cent in 2006-07, 11 per cent in 2007-08, and 6.8 per cent in2008-09. After the end of the first round of slowdown, the state experienced double digit rate of growth for the next two years. It grew by 10.1 per cent in2009-10 and 10.5 per cent in 2010-11.

Significantly, a top Gujarat government budget document, distributed on Friday, sought to give GSDP figures at current prices, which would include inflation in the economy. Officials who prepared the document said they base their calculations "only on current prices and not on constant prices."


Even then, the document, "Statement Under Gujarat Fiscal Responsibility Act, 2005," admits, at current prices the state economy registered a "nominal growth" of 15.20 per cent during 2011-12 (AE), as against 20.03 percent in the previous year. By way of comparison, the document underlines, "GSDP at current prices grew an annualized rate of growth of 16.47% over the period 2004-05to 2011-12."

It claimed, "The state has emerged as the growth engine of India and its pace of economic growth continues to be higher than the national average. The near stagnant global growth scenario with the effect of debt crisis of European countries as well as high level of domestic inflation and high interest rates, have seriously affected the Indian economy, which is witnessing a sharp decline in growth in FY 2011-12. Despite these challenges the state's economy is expected to grow by 15.20 per cent."
:hmm: magic of Numbers:sad:. Any way Gujji Much better than most of the country.
 

thakur_ritesh

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This is the best way to answer your critiques, deliver where it matters the most.

Looking at the way the campaign was run in the media against modi the last time the elections were to take place, and with similar expectations this time round, it is important for him to counter it by telling people what all he and his team have delivered on in the state. Interestingly, of late, a few congress leaders have acknowledged the effort put in by modi in transformation brought about.

One thing I have always appreciated about the gujju community, for them all that ever mattered was business, and how it was doing, and if they have someone at the top delivering, they will support him.

Ejaz,

Unlikely they would be talking nominal gdp growth rate numbers here. Quite likely they are already doing 15(+)% in nominal numbers. With the way the inflation sky rocketed, last fiscal India did over 20% nominal gdp growth but we didn't have Gujarat making any tall claims. These are most likely real gdp growth numbers being talked about.
 

ejazr

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The article I quoted gives the same target of 15% GDP growth rate but species it to be nominal growth rate for the same period 2012-2013. If the real growth rate target was 15%, the budget documents could easily be higher. I may have missed something there but it looked the two articles were talking about the same budget document and projections.

In any case, Gujarat definitely did extremely well in the 2004-2009 period but the GFC has impacted its economy partly because Gujarat has a large foreign trade component in its SGDP. Gujarat of course exports close to a quarter of India's total exports so the EU slowdown and the knock on affects had an impact on Gujarat in 2010-11. It also affected mercantile states like Maha and TN as well. On the other hand, states like Uttarkahand, Haryana, Bihar and Delhi among others raced to the top with higher average GDP growth rates than the usual top performers as they were not impacted by foreign trade issues and had a lower base as well.


I just think that GDP growth rates wether real or nominal, wether constant prices or current prices should be measured together and then compared.

So one way would be to look and compare the figures in the Economic survey 2012 pages A11 and A12 on NET SDP
http://indiabudget.nic.in/es2011-12/estat1.pdf

Another is to look at the Gross DSP for 2011 again using the same methodology for all state and UTs. This way you get a better picture of what you are comparing.
State Domestic Product of India 2011-12 | State-Wise GDP 2011 | District GDP of India | State-wise Population 2011 | VMW Analytic Services
 

Raj30

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'No competition for Gujarat in years to come'
No competition for Gujarat in years to come

Riding on financial and political stability, as well as a sound industrial policy, the Gujarat government feels it would not face competition in the state in the years to come.

Speaking at 'Business Standard Gujarat Round Table 2012' in Ahmedabad on Tuesday, Minister of State for industries, energy and petrochemicals, Saurabh Patel, said the state was way ahead of others in the country. "The most important thing for a state is to have a strong foundation of financial stability. Today, Gujarat is one of the most financially stable states in the country. We have passed the financial responsibility Bill and performed better than what we had promised in the Legislative Assembly," he said during his keynote address at the event. The theme for the event was 'Gujarat: Its Growth Challenges'.
The state's budget plan size rose from Rs 5,000 crore in 2002 to Rs 51,000 crore in 2012. "I can assure you we are years ahead, compared to any state. The only state with which Gujarat is compared is Maharashtra. In the last five to seven years, because of the political stability, clear-cut directions & policies and a clear road map, we have been able to do better than any other state in the country. If this continues at the same rate, which I am sure it would, I don't think there will be any competition for Gujarat in the coming years," Patel said.
The minister stated three major challenges the state was likely to face in the days to come—land-availability for setting up new industries, skilled manpower and management of water in industrial units and farmland. "Every day, one industry comes with a proposal for immediate availability of land with ready infrastructure. This is a difficult issue for us, as providing ready infrastructure takes time. The demand we are receiving is a big challenge for us to meet," he added.

For skilled manpower, demand is more than supply. "It is necessary that actual demand is identified by the industry. The government has started skill development centres in partnership with industrial associations. It is trying hard to meet the requirement of industry," Patel added.

"No one has thought of water as a challenge. Ten years down the line, water would be one of the biggest challenges in the country. If we look at the usage of water in the agriculture or industrial sectors, it is not at all efficient. Because of inefficiency, the consumption is higher, especially in the farm sector. The usage of water would have to be restricted in the coming days. This issue needs to be tackled immediately," Patel said.

He said Gujarat's power generation capacity of 15,000 Mw was expected to rise to 30,000 Mw by 2017. "One might think the figure is very high. But it is a fact, as most power plants have started work. This is going to be the most important strength of Gujarat in the years to come," he said.

Patel expressed concern over the fact that owing to the rise in the prices of land, it would be difficult for the government to secure big areas.

"The policy of setting up private industrial parks would, therefore, attract investors. Because of this policy, we will be one up over other states," he said.
 

VIP

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Gujju media knows everything but never shows these kind of positive news about Modi, which is very sad. Journalism is dead here, politicians accusing Modi everyday without having any evidences.And newspapers also shows their statements as real, always trying to push article writers' agenda on people's mindset, this is not done....
 

Predator

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Gujju media knows everything but never shows these kind of positive news about Modi, which is very sad. Journalism is dead here, politicians accusing Modi everyday without having any evidences.And newspapers also shows their statements as real, always trying to push article writers' agenda on people's mindset, this is not done....
then its time to close some of these gossip peddling PAID newspapers. deport all PAID crooks to delhi, when hard reality of life hits them they will beg to be allowed back into gujarat.
 

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then its time to close some of these gossip peddling PAID newspapers. deport all PAID crooks to delhi, when hard reality of life hits them they will beg to be allowed back into gujarat.
There is another doable solution.
Don't buy such newspapers, don't watch such channels for news, don't visit such websites.

There are other news outlets a bit better than those ones. I do it.
I stopped reading TOI 6 years ago, but for a different reason - mindless garbage.
 

VIP

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There is another doable solution.
Don't buy such newspapers, don't watch such channels for news, don't visit such websites.

There are other news outlets a bit better than those ones. I do it.
I stopped reading TOI 6 years ago, but for a different reason - mindless garbage.
But there's no other options. All 3 leading newspapers are spitting venom against modi since last decade and local newspapers can't stand against competition.
Btw, the supplementary with these newspapers are having good writers and they always write truth without putting any bias.
 

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