Uttar Pradesh Unveils Rapid Growth: Factories Surge, GDP Doubles Amidst Investment Push

Uttar Pradesh, a state with a population of 24 crore, is showcasing a remarkable growth story, according to Alok Kumar, Additional Chief Secretary of the Infrastructure & Industrial Development Department. Speaking at Fortune India's Best CEOs Awards, Kumar emphasized the need to promote Uttar Pradesh as an attractive destination for businesses.

The state's success is built upon four foundational pillars:

1. Safety: Ensuring investors feel secure and protected.

2. Infrastructure: Development of metros, airports, and expressways to facilitate connectivity and logistics.

3. Governance: Focus on ease of doing business and investor-friendly treatment.

4. Policy Environment: Creating an attractive framework for investment.

Kumar highlighted significant progress, stating that factory registrations have grown almost exponentially, from 500 per year in 2015 to 3,100 in 2023-24, with an aim to reach 6,000 this year. Over the past seven years, Uttar Pradesh has doubled its GDP and per capita income.

Challenging the perception of Uttar Pradesh as solely agrarian, Kumar pointed out the state's vast MSME sector, comprising 96 lakh units, averaging one unit per five families. Traditional industries like brass in Moradabad and leather in Kanpur and Agra remain strong.

To further bolster growth, especially in the services sector, Uttar Pradesh has introduced a new GCC (Global Capability Centers) policy. The state is actively marketing key cities like the expanded Noida area (Yamuna region) and Lucknow. Companies such as IBM, HDFC, and Deloitte have already established offices in Lucknow, leveraging its potential, while Noida is integrating its existing electronics ecosystem with GCC setups. Kumar described Uttar Pradesh as a state of 'continental dimensions' with a young population and a large market.

Impact

This news highlights significant economic development and an improved investment climate in a major Indian state. It can positively influence investor sentiment towards Uttar Pradesh, potentially leading to increased business activity, job creation, and economic growth within the state and indirectly across India. It underscores India's potential for industrial and economic expansion.

Rating: 7/10

Difficult Terms:

• MSME: Stands for Micro, Small, and Medium Enterprises. These are small-scale businesses crucial for employment and economic development in India.
• GDP: Gross Domestic Product. It's the total value of all finished goods and services produced within a country or region in a specific period. It's a key indicator of economic size and health.
• Per Capita Income: The average income per person in a country or region. It's calculated by dividing the total income by the total population.
• GCC Policy: Global Capability Centers Policy. This refers to policies designed to attract multinational companies to set up centers in a state that provide specialized services (like IT, R&D, financial services) back to their global operations.
• Agrarian State: A state whose economy is primarily based on agriculture.
• Exponential Growth: Growth that becomes increasingly rapid over time.