BJP TODAY

October 1--15, 2005 - Vol. 14, No. 19

Gujarat Village is Asia's Richest
From Our Correspondent

Gujarat's Madhapar village, some six km from Bhuj town is the richest village of Asia. If the Rs 1,800 crore fixed deposits are an indication, Madhapar could well be Asia's richest village. With a population of 15,000, the per capita deposit averages Rs 12 lakh which, by all accounts, is the highest in the whole of Asia. The money is flowing in thanks to the huge foreign remittances made by NRIs from Madhapar settled in Africa, the Gulf, the UK and US. About 65% of the NRIs, mainly Patels, are engaged in various vocations and remit money to their kin. The remittances are deposited in nationalised banks and post offices. Ten nationalised banks have branches in the village and account for nearly Rs 900 crore in deposits while post offices share the other half. Traditionally, villagers deposit money in post offices as they consider them safe and they also earn more interest compared to banks. The staff 's personal touch also plays a big role as the employees in post offices are known to the villagers. However, of late, NRIs find remittances through nationalised banks more convenient. The startling point is the low deposit lending ratio. Lending by all public sector banks put together is a mere Rs 50 crore as against the Rs 900 crore deposit. This is mainly because villagers do not need any credit. Most of the NRIs are workers and a few of them are building contractors. Some of them who returned home have turned builders. Despite their riches, the inhabitants of Madhapura are unassuming and lead a simple lifestyle. Many still live in their old houses. The majority of depositors do odd jobs. Even the womenfolk work and earn their livelihood, thus keeping their deposits and the accrued interest intact.