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Bad Governance and pathetic Infrastructure drive Industry to investor friendly States especially Gujarat

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Industry in India is facing hard times with growth rates having plummeted in 2012 due to various factors the biggest of which is bad and corrupt governance. While the federal government is mired in a never ending series of corruption scandals, many of the state governments have proven to be equally bad if not worse. Some of the major factors which has led to the current situation are:

a) High Land Costs and problems in Land Acquisition (Punjab, West Bengal)

b) Higher interest rates

c) No Power (Andhra Pradesh, Punjab)

d) Bad Roads

e) Militant Labour ( Haryana)

There are only a few states in India which have good infrastructure and industries are abandoning their home turf. Gujarat has been one of the biggest beneficiaries, as an investor friendly government has been proactively helping the industry in acquiring infrastructure and reducing red tape. First the prestigious Tata Group’s Nano Car project got shifted to Gujarat after a huge land agitation row in West Bengal. Now fastener producers in Punjab are also being driven to Gujarat due to an indifferent government in their home state .

Read on GWI:


Citing power shortages, rising land costs and unfavourable policies for them in Punjab, the State’s fastener manufacturers are planning to set up a cluster in Gujarat by investing Rs 1,000 crore initially. Fastener manufacturers see huge growth potential in Gujarat by tapping several sectors like refinery, power and automobile sectors which have a strong base in the western State, company officials said. The industry’s problems in Punjab include power shortage that is hampering the growth of the industry, they added.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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