Lucknow: Uttar Pradesh is one of the largest markets in the world.
It has more than 8% of the purchasing power of the country and is blessed with a variety of resources and raw materials.
It was ranked first in seven of more than 10 main line Agri-production.
Each production facility is located at the top have access to more than 50% of the market countries (including neighboring countries).
It’s been a long time, up has been trying to find a successful but in vain.
However, lately, a story of structural changes seem to download its own scripting.
It’s not just about new buoyancy; Instead more about the inherent resilience which is clearly visible.
The scenario appears full of possibilities and can not be left unnoticed.
Something relevant is going on in the state that appears to facilitate the emerging opportunities such as fiscal consolidation and ease of doing business.
Over the years, ups have been able to achieve fiscal consolidation.
In recent times, in line with the global scenario of negative growth in which India itself experienced negative growth of almost 25% for the time being; The decline in tax collection in the state only to be expected.
However, unlike most of the world, up showed the buoyancy of tax outstanding in these difficult times.
Almost all taxes showed higher buoyancy which may reflect the remarkable resilience shown by the state.
Consumer Countries advantage is the USP UP and this may have played to the advantage UP.
However, the tax where the state has full control buoyancy phenomenal show.
Therefore, the effort’s going to allow this can not be considered.
Similarly, as a result of the ease of doing business, the country recorded a quantum leap from rank 12 to 2 in the last four years.
No surprise that more industries are competing to set up their shops here for a conducive working environment.
Samsung has moved the display unit of the magnitude of China to Noida, Von Wellx footwear giant shift production from China to Agra, and Adani shut logistics park in Punjab and is now investing in a data center Noida.
During the Investor Summit in 2018, a total of 1,045 investment intentions worth Rs 4.28 lakh crore proposed.
So far, nearly 43% of leads generated at the summit is worth about Rs 1.84 lakh crore are under various stages of implementation.
More recently, Tata and Airbus signed a deal of Rs 22,000 crore to manufacture aircraft C-295 in the state.
Investing in rural communities is also an idea whose time has come.
The state has transferred RS37.388 crore to over 2.54 crore farmers under Kisan Samman Nidhi Pradhan Mantri yojanas along with hiking MSP rates.
So far the government has paid more than Rs4.72 crore to farmers as crop loan.
The initiative ‘One District One One Product’ was launched in 2018 is an interesting attempt to create a framework for sustainable engagement craftsmen, mostly in rural areas.
Today, millions of people have jobs through Odop.
According to the Ministry of MSME, 8.67 lakh new units started in the state in the past eight months, were given loans with songs Rs 30 840 crore by banks.
More than 1.5 crore employment opportunities created by the bank to lend more than Rs 2,12.000 crore.
In the last 3 years, ODOP has helped increase exports to 38%.
Initiative which has provided jobs (direct and indirect) to more than 25 lakh people are now replicated throughout the country.
While remarkable initiative, it may be useful to align the initiative with nine agro-climatic zones of the country.
Realignment is likely to transform the initiative into a powerful engine of economic transformation.
Transformation fiscal and ease of doing business seems to have set up a field that allows the state to anchor the development.
Many interventions appear to be falling into place and of course work for the state.
With a better economic environment, the country needs to lead in starting a second generation reforms are anchored around rural development (including SMEs) and human development (especially health and education).
We have already started treading on the road and up the transformation ready.
Removing the transformation engine which is woven into the second generation reforms will transform this potential into economic reality.
(Prof Arvind Mohan teaches economics at the University of Lucknow and is associated with a large number of international and national organizations)