Given that the gross state domestic product (GSDP) in FY20 was about Rs 17.95 lakh crore, achieving the target will require raising it by over 4 times in five years; of course, the deep economic contraction caused by Covid-19 would raise the required rate of growth even further.
Clinging tenaciously to the poll promise of boosting the size of the state’s economy to $1 trillion by 2025, the Uttar Pradesh government on Thursday floated a global tender to engage a consultant for the task, which, by its own admission, looks Herculean. Given that the gross state domestic product (GSDP) in FY20 was about Rs 17.95 lakh crore, achieving the target will require raising it by over 4 times in five years; of course, the deep economic contraction caused by Covid-19 would raise the required rate of growth even further.
The country’s real GDP is estimated by various analysts to shrink by up to 15% in FY21. India will permanently lose about Rs 30 lakh crore of its GDP in nominal term by FY24 due to the damaging impact of the Covid-19 pandemic, Crisil predicted on Thursday.
Uttar Pradesh’s nominal GSDP grew a robust 7.57% in FY20, compared with the national rate of 7.2%.
Outlining the job of the consultant, a UP government advertisement said: “Based on status and recent trends, (the consultant will have to) determine multipliers between sectoral growth and impact on the GSDP; and assign targets and how to achieve them for each sector towards $1 trillion economy”. In addition, the consultant will have to compare the structural, institutional, and financial and governance reforms carried out and the outcomes achieved in top three states of India and top three countries across the globe which have similarities to UP. The consultant will also have to develop a strategy for public-private partnership (PPP) options across sectors.
The tender document says that the “Herculean task demands some giant steps” to be taken by the state Government to move forward.” “It needs some well thought out and long-term strategies on a sustained basis and would also require organisational restructuring, focussed policies and rules for more effective governance, faster decision-making process and improved accountability”.
The document says that the consultant will have to make critical analysis of macro and micro economic sectoral data of the state in all the key sectors and identify the key factors which have contributed to each sector’s economic growth in the past four years and how these factors will include policies of Central as well as the state government, human resource, infrastructure, application of new technology, special projects and governance.