POLICY DILEMMA

(DEPARTMENT OF ECONOMICS, LADY SHRI RAM COLLEGE)

SVC DIPLOMATS
(SRI VENKATESWARA COLLEGE)

Akansh Gandhi akanshgandhi.edu@gmail.com

Vedansh Lamba vdnsh11@gmail.com

SITUATIONAL ANALYSIS - I SITUATIONAL ANALYSIS - II SOLUTIONS - I SOLUTIONS - 2 POLICY SUGGESTIONS

GUJARAT
Manufacturing Industry in Gujarat
Port Cities like Kandla serve as
nodes to trade internationally
to the western countries.
KANDLA
Total GSDP Secondary Sector CAGR of
manufacuring
Special Economic Zones(SEZ)
JAMNAGAR
have been created in cities like
US $ 349 US $ 157
Jamnagar.
BILLION BIILION

2023-24 2022 21% SURAT

Specifics of Gujarat
Percentage Split within Manufacturing
Average Wage Rate 3rd Largest FDI generating state
Rs. 450 to 500 (Unskilled)
Unemployment Less Than 4%
Rs. 480 to 530 (Semi skilled)
Hub of Jewellery Production.
Textile One of the most business
Highest Exporting State
Chemicals & Petrochemicals proficient cities in India.
Longest Coast Line

Labour Migrant Workers Scarce Raw

Pain Points Shortage Returning Material
Automobile

Others
Technical Business
Advantages Route to West
Agro & Dairy Know How Prowess
Semi Cond…
SITUATIONAL ANALYSIS - I SITUATIONAL ANALYSIS - II SOLUTIONS - I SOLUTIONS - 2 POLICY SUGGESTIONS

ODISHA
Manufacturing Industry in Odisha Specifics of Odisha
Average Wage Rate Largest FDI generating state
Rs. 352 to 450 (Unskilled)
Unemployment More than 8%
Rs. 392 to 500 (Semi skilled)
Total GSDP Secondary Sector CAGR of
manufacuring Fastest Project Approval
US $ 110 Per capita income < National PCI
US $43.5
BILLION PARADIP
BILLION
Bhubaneswar has been ranked BHUBANESWAR
2023-24 2023-24 14% the best city in Inida to conduct
business due to condusive
Percentage Split within Manufacturing environment & affordability. KORAPUT

One of the sites in Odisha that

Coke and refined petroleum
has abundant mineral resoucre Paradip is a port in Odisha. It can
serve as a route for trade to south
and processing factories to
east asian countries i.e. 10
extract the resource.
members of ASEAN

Basic metals
Unorganisd Rampant Tribal
Pain Points Mnaufactung Unemployment Population
Chemicals and… Food

Skilled Route To South Abundant Raw

Others Other NMM p… Advantages
Workforce East Asia Material
 PONDICHERRY
Manufacturing Industry in Pondicherry

Total GSDP Secondary Sector CAGR of manufacuring

Specifics of Puducherry
Agricultural Dependence
French remittances
45% Engagement
US $ 4.69 Conspicuous Consumption
US $2.69 2% GSDP Contribution
BILLION BILLION Under Utilised Marine Resources
2023-24 2023-24 -2% High Impact of Other States

YANAM

Percentage Split within Manufacturing Only 1 Large Scale Industry and MAHE
rest smaller industries, under
PONDICHERRY
utilised.
KARAIKAL
Food Products Cotton and Wool
Chemical and Chemical P…
Pre Dominantly Rural
Population adn engaged highly
in agri. unlike rest of the areas.
Slow Paced
Restrictions Under Utilised Lifestyle:
Pain Points from other territory Conspicuous
states
Consp.
Leather, rubber a… Machinery an…
Metal Products
High Literacy Spread in Urban
Advantages Rates Various Population
Directions
 SITUATIONAL ANALYSIS - I SITUATIONAL ANALYSIS - II SOLUTIONS - I SOLUTIONS - 2 POLICY SUGGESTIONS

SYNERGISING STRENGHTS KNOWLEDGE EXCHANGE TRADE AND LOGISTICS

GJ
TECHNICAL KNOW HOW
SEASONED BUSINESSMEN
AND ENTREPRENEURS
MANUFACTURING HUB
Gujarat-Odisha Manufacturing Expo
OD Addressing the gap between GUJARAT
RESOURCE RICH human resource utilization
1 major port and 41
SURPLUS LABOUR
42 non major ports
GJ
Lack of workforce: Thus, there is a clear gap
between the current scenario Apart from Kandla, we build another major
Migrant Laborers
Low wage rates and maximum potential. Both port in Gujarat to accommodate the surge in
production due to thee GJ-OD collaborations.
states can leverage this.
Low unemployment Gujarat with a lack of
workforce can reach out to BHAVNAGAR
4%
Odisha, which has high FTA WITH UK
AND OTHER
AND GULF OF
workforce but still high KUTCHH ARE

A manufacturing expo between the two states will lead to OD unemployment.

COUNTRIES POTENTIAL
PORT SITES
exponential mutual benefits. Our plan is to launch monthly 4-5 High workforce: Odisha can turn to Gujarat for
days long programmes. Labor intensive technical know-how and ODISHA
industries expertise.
1 major port only:
We aim to create a more organised system of manufacturing High unemployment 1 Paradip port
in Odisa as opposed to the status quo leading to leakages in
the economy. Government Intervention would ensure 8% We need to increase the number of ports.
organisation. According to Commerce and Transport
Top tier institutes: IITs Department, there are 14 potential port sites
A recent example: in Odisha.
and IIMs
Gujarat Mineral Development Corporation (GMDC) is
SUCCESSFUL
in talks with Gujarat Urja Vikas Nigam Ltd. (GUVNL) Young and smart talent MANUFACTURING
FTA WITH FUTURE PORTS
ASEAN AT CHUDAMANI
to set up a power plant in Odisha. GMDC expects to HUB COUNTRIES: AND DHAMRA
mine 21 million tonnes of coal annually from Odisha THAILAND, BOOST
Hubs of academia SINGAPORE CONNECTIVITY
by FY 2028-29.
SITUATIONAL ANALYSIS - I SITUATIONAL ANALYSIS - II SOLUTIONS - I SOLUTIONS - 2 POLICY SUGGESTIONS

DISASTER MANAGEMENT TOURISM INDUSTRY COLLABORATION

ODISHA AND GUJARAT HAVE A COMMON OUR KEY FOCUS INDUSTRIES
ENEMY: NATURAL DISASTERS. THEIR
Tourism Employment Income
COLLABORATION HELPS THE Agro-based and food processing
MANUFACTURING SECTOR. industry
Manufcturing Investment
Steel industry
Impact Chain From tourism onto
manufacturing
Textile industry
Under State Disaster Response Fund
(SDRF), Gujarat has been allocated
INR 584 Cr (5th largest) and Odisha
The Agro processing cluster (APC) which
has been allocated INR 707 Cr (3rd How it pans out
includes Bhavnagar, Valsar, etc. has great infra.
largest).

Gujarat Odisha
Both areas are prone to floods, the Hazira steel plant is on way to become the
largest in the world. Gujarat produces 50% of
concerned authorities can collaborate
High Disposable HIdden Treasure country’s textile processing machinery.
to improve safety measures.
Income for Tourism
Clearly, Gujarat has abundant
Odisha being prone to cyclones, can infrastructure. Odisha is one of the largest
leverage the expertise of Gujarat State Promote tourism Cheap Travel producers of cotton and silk; it also sports
Disaster Management Authority (GSDMA). in Odisha a strong steel and power industry.

We maximize benefits for both the states if

Gujarat is prone to earthquakes. So, Gujarat gets to use the resources produced by
GSDMA can collaborate with Odisha State Soft Power Push Income Support
Odisha and Odisha gets to use the state of the
Disaster Management Authority (OSDMA). to Odisha art infra in Gujarat.
 PONDICHERRY-GUJARAT-ODISHA COLLABORATION

PONDICHERRY KNOWLEDGE EXCHANGE TOURISM TRADE

Karaikal Yanam Mahe Pondicherry boasts a high literacy rate but also a
Tourism Cover a major part of the
very high unemployment rate. This is due to high
immigration from other states.
economy of Puducherry in
Rural and semi Urban Urban
comparison to any other sector.
urban
Although the consumption
pattern shows less investment.
1/5th of Pondicherry’s manufacturing PONDICHERRY PLANS TO CREATE 50000 JOBS.
comes from Karaikal. Since it is semi-urban
and untapped, more manufacturing units.
How do we combat this?
A lot of improvements can be made, since it is
slow paced and people are shifting toa
As of 2015, Mahe has only one large scale comparatively calmer spots of vacation. We can
industry. It has a lot of untapped potential leverage this factor and derive high revenue
too. Labour exchange between Gujarat and
Pondicherry to counter pondicherry’s
unemployment situation and Gujarat’s This revenue in turn can be made to
labour shortage condition convert to investment via promotion
Gujarat-Mahe
Odisha-Karaikal of better industrial norms.
resource
knowledge and
exchange
power exchange Tourism Employ Income
program
Pondicherry’s literacy can be used in ment
Odisha to generate entrepreneurial culture
With Gujarat’s extensive industry network, Mahe can and tribal education programs Manufcturing Investment
benefit a lot. With abundance of power and
electricity industries in Odisha, Karaikal can leverage
them.
 GUJARAT-ODISHA-PONDICHERRY MANUFACTURING-EXPO CORRIDOR
Well established Domestic Extensive International
Complimentary Strengths
Network Netwrork

Kandla

Jamnagar

Surat
Paradip

Koraput Bhubaneshwar

Yanam

Mahe Pudducherry

Increased Manufacturing Optimal utilisation pf

Entire Coastline Coverage
and Exports untapped resources
 SITUATIONAL ANALYSIS - I SITUATIONAL ANALYSIS - II SOLUTIONS - I SOLUTIONS - 2 POLICY SUGGESTIONS

PESTEL ANALYSIS
Political Social Environmental
Odisha’s CM-Best Respectful
performance
Sustainable
treatment to
Biju Janata Dal - Manufacturing
tribals
Join NDA in 2024 Justified
BJD & BJP rule in Rehabilitation of
Economic Technical utilisation & Legal
Od, Gj resp homeless
reallocation of
BJP allied govt in Resouce and Cultural Diffusion from GJ Corporate Social
Puducherry labour to Gujarat to OD
resources. Responsibility can be
Hetrogenity
Entrepreneurshi Greater collective made legally stricter
for industrialists to set
p enhacement in FDI leads to
up plants in backward
Odisha. better
areas and to provide
Profits technological jobs to the dislocated.
Redistribution. advancement

Exclusivity Profits Investment

MSME

EXISTING POLICIES
NEW POLICIES

Creation of exclusive contract between
Gujarat and Odisha and Puducherry so
as to help all the states flourish
together. Although, it does not include
international trade and they’re both
allowed to carry that out for profits
Equal distribution of profits that come
from the newly set up manufacturing
hub. Thuis is derivative of the fact that
they pool in equal resources (physical
or human)
There are several schemes
that the govt has already
launched, in order to serve
the high number of MSMEs
in the two states.
PMs Employment generation
The govt of Odisha has come up
with the semiconductor policy of
2024. It has been ranked highest
among all niche semi conductor
policies in India due to its
conducise nature. Scarcity of chips

Rehabilitation of tribals
Owing to the large tribal population and
unrest among them relating to set up of
industries, it is extremely important that
they are made a part of the govt plans and
given rehabilitation if their habitat is
Promotion of Investment
Much of the Remittances received by
Puducherry by France is consumed in
being conspicuous, we need to divert
these to investment in industries.
programme (Credit for businesses) globally can provide us an edge if
Government E- Market places (Ge-M) we become its manufacturers.
Industrial Policy 2017 Draft Water Policy
Pondicherry’s Industrial Policy of 2016
Better management
aims at improving manufacturing in the
and utilisation of
territory, fuller utilisation of resources
and better academic support as well. groundwater
 Thank
YOu
Akansh Gandhi

Vedansh Lamba
Link to Appendix