Amid economic slowdown and subdued industrial growth in the country, one state which has performed better is Uttar Pradesh. In the month of June, the industrial output of UP grew at 3.2 percent compared to Indian average of 2 percent. The electricity consumption has saturated in Western and Southern states, but, UP’s electricity output expanded by 8.7 percent.
The government of UP is aggressively pursuing power transmission reforms to provide uninterrupted power supply to industries. The state government will invest 20,000 crore rupees in next five years to improve power transmission, said UP energy minister Shrikant Sharma in the month of July.
As per data released by Economics and Statistical Division of the State Planning Institute, UP- mining and manufacturing expanded by 4 percent and 2.5 percent respectively.
Ever since the Yogi Adityanath government took it upon itself to clean up the state, investors have been eyeing opportunities in Uttar Pradesh. The government has tackled law and order issues by giving the police a free hand to target crime and finish the various mafias which held sway in different sectors.
At the same time, several reforms were undertaken. The bureaucracy was streamlined and made more accountable. A single-window clearance system for investors has been introduced, and the departments concerned will be answerable to the chief minister directly if any delays occur. Several big-ticket infrastructure projects which will boost the state’s economic prospects, have also been undertaken.
Some years ago,there was only one word to describe Lucknow city: Dirty.
Amazed to see its transformation into a clean city today.I asked if this was due to the investor summit..My local colleagues assured me it was not.They said it has become one of India’s most liveable cities!
— anand mahindra (@anandmahindra) February 21, 2018
The Yogi government in Uttar Pradesh had organized a groundbreaking ceremony for projects worth 60,000 crores (8.7 billion dollars) on 29th July in the presence of PM Modi. The MoUs for these investments was inked in the UP Investors Summit in February. The total investment promised by industrialists in this investor summit was 4.28 lakh crore (61 billion dollars) in 1, 0 45 memorandums. In this summit, PM Modi said that Uttar Pradesh government can compete with Maharashtra to become the first Indian state with a trillion-dollar economy.
Maharashtra’s GDP is 430 billion dollars as of now and it aims to become a trillion dollar economy by 2025. The state of Uttar Pradesh is currently 230 billion dollar economy so the state has to grow at least double of Maharashtra’s pace to overtake Maharashtra to become the first Indian state with a trillion dollar economy.
In recent decades, the economy of Uttar Pradesh has not grown at a good pace due to lacklustre administration of the Samajwadi and Bahujan Samaj Party. On the other hand, neighbouring states like Bihar, Madhya Pradesh registered the double-digit growth in the same time-frame given the good governance of NDA governments.
But the Yogi government has aggressively pursued economic growth. Last month, the government announced that 25 percent rebate on land as well as discount of electricity will be given to companies to attract investment for the defense industrial corridor, planned across six districts of the state. The defense corridor is expected to attract investment worth 20,000 crore rupees and create 2.5 lakh jobs.
The latest projects will immensely contribute to the economic growth of the state. The pro-business stance of the Yogi government has boosted investor’s confidence in UP and recently, many multinationals like Ikea, Vivo, and Samsung made investments in the state. Under the able leadership of Yogi Adityanath, the rule of law prevails in the state and terms like corruption and Gunda Raj have become totally obsolete.