We are extremely optimistic about UP’s economic potential

Sidharth Nath Singh, the senior Uttar Pradesh cabinet minister and government spokesperson, discusses the growth potential of India’s largest state. His views on:

Investments in UP:

India is led by one of the most able Prime Ministers. Uttar Pradesh has embarked upon the herculean task of becoming a $1 trillion economy. It is basically an agricultural economy but we have a large base of 9 million SMEs (small and medium enterprises). We are adding 2 million every year and have given over Rs1,800 crores to over 49 lakh MSMEs in the past three years. With such investments and potential, there is hope that we can reach the target. Uttar Pradesh recently emerged as top destination for investment and as the second best state for Ease of doing business.

It has jumped from the 12th position in Business Reform Action Plan (BRAP) 2017-18 to the second position in BRAP 19. UP has left behind several leading states such as Gujarat, Telangana, Rajasthan, Maharashtra etc in the EoDB annual rankings. It has implemented 186 of the 187 reforms suggested by the Union government’s department for promotion of industry and internal trade (DPIIT) under BRAP 19

We are extremely optimistic about the state’s economic potential. A minor example is the tech giant Samsung leaving China to set up its plants in the state. The state government will be providing financial incentives to the South Korean giant Samsung Electronics to set up a display factory in the region, which is expected to cost about $655 million and will also help boost the Make in India initiative that aims to project the country as a manufacturing hub. It’s noteworthy that Samsung already has the world’s largest mobile phone manufacturing plant in Uttar Pradesh. PepsiCo has invested a sum of Rs 8,000 crore to start a plant in Mathura to manufacture potato chips.

Employment opportunities:

It is Uttar Pradesh’s endeavour to provide opportunities of employment or self-employment to every youth as per their skills and participate in the development of the state. In such a situation, it also becomes necessary that the youth develop themselves as skilled and talented competitors.

‘Mission Rozgar’ was recently launched by the state government which aims to provide jobs to at least 50 lakh youth till March 2021. Under this, along with providing integrated employment and self-employment to youth through various departments and organisations, arrangements for skill training and apprenticeship will also be made so that by the end of this financial year, 50 lakh youth are enabled for employment and self-employment.

To ensure special participation of women in every department and also to honour them, the government is moving in the direction of making women self-reliant by appointing 58,000 Banking Correspondent Sakhis for providing banking facilities at the grassroots level.

Backbone of state economy

Chief Minister Yogi Adityanath further aims to make UP a $1 trillion economy. If we look closely at the micro-economic situation, the backbone of the state economy is the Micro, Small and Medium Enterprises (MSME). They are not only the drivers of growth but also the basis of inclusive and welfare-oriented development. Therefore, the UP government has given a lot of encouragement along with preference to the sector. During the trying times of the pandemic, the state government distributed loans worth Rs 39,390 crores to more than 14.05 lakh MSME units. Out of these, more than 3 lakh units are new ones.

According to the estimates of econometrics, one MSME unit generates between 10 and 100 jobs. Hence, it can be estimated that due to these units more than 30 million jobs will be created in the new MSME units. It should be noted that Micro, Small and Medium enterprises have so far provided employment to 52 lakh people. In addition, 1.25 crore people have been provided employment under the Atmanirbhar Uttar Pradesh Rozgar Programme. About 33 lakh people have been given jobs in the industrial projects initiated with an investment of around Rs 3 lakh crore. Investment of Rs 50,000 crore in Defence Corridor will not only develop the infrastructure in the state but will take Uttar Pradesh towards defence manufacturing and defence economy.

Rapid transformation

Uttar Pradesh is undergoing rapid transformation and will continue to expand at a robust pace. Even amidst the pandemic, the state was able to attract an investment of Rs 53,000 crore which speaks volumes. Uttar Pradesh's total collection of tax and non-tax revenue have witnessed an increase of about Rs 2,522 crore in December 2020 compared to same month in the previous year.

Further, the state’s total collections in the first three quarters of 2020-2021 have also improved considerably and we are hoping for a turnaround in the last quarter. If the economic position is good, then all the other sectors also fall into place automatically. Therefore, increasing revenue collection has been among our top priorities.

The MSME department has played an important role in boosting UP’s economy during the Covid-19 pandemic. Both the prime minister as well as the UP chief minister have a positive approach towards promoting small-scale industries, the atmosphere prevailing in UP’s MSME sector has already been transformed. Thus, the image of UP as an investment option has also been transformed. Now, UP is on course to become a major manufacturing hub.
The central government is also adopting ‘One District One Product’ (ODOP). There’s also an initiative called the Mukhyamantri Swarojgar Yojana (CM self-employment scheme). In the MSME sector, loans worth Rs 36,000 crore have been disbursed to seven lakh units, new and old. UP’s economy is coming on track.