Innings two

Second Time (2002–2007)

During his second term, Modi's emphasis shifted from Hindutva to the economic development of Gujarat. Modi's decisions curtailed the influence of organizations of the Sangh Parivar such as the Bharatiya Kisan Sangh (BKS) and the Vishva Hindu Parishad (VHP), which had become entrenched in Gujarat after the decline of Ahmedabad's textile industry.Modi dropped Gordhan Zadaphia, an ally of his former Sangh co–worker and VHP state chief Praveen Togadia, from the cabinet ministry. When BKS launched a farmers' agitation, Modi ordered their eviction from houses provided by the state government. Modi's decision to demolish 200 illegal temples in Gandhinagar deepened the rift with VHP. Various organisations of the Sangh were no longer consulted or apprised of Modi's administrative decisions prior to enactment.

The changes brought by Modi in the period 2002–2007 has led to Gujarat being called an attractive investment destination.[citation needed] Aditi Phadnis, author of Political Profiles of Cabals & Kings and columnist in the Business Standard, writes that "there was sufficient anecdotal evidence pointing to the fact that corruption had gone down significantly in the state... if there was to be any corruption, Modi had to know about it" Modi instituted financial and technology parks in the state. During the 2007 Vibrant Gujarat summit, real estate investment deals worth INR6.6 trillion (short scale) (INR6600 billion) were signed in Gujarat.

Atal Bihari Vajpayee, then Prime Minister of India, who had asked Modi not to discriminate between citizens in the aftermath of the 2002 Gujarat violence and had pushed for his resignation as Chief Minister of Gujarat, distanced himself from Modi and reached out to North Indian Muslims before the 2004 elections to the Lok Sabha. After the elections, Vajpayee held the violence in Gujarat as one of the reasons for BJP's electoral defeat and acknowledged that not removing Modi immediately after the Gujarat violence was a mistake.