Uttar Pradesh‘s Global Investor Summit resulted in a rich harvest of MoUs or intentions to invest, amounting to Rs 33.5 lakh crore, in India’s most populous state. This represents an 8X increase from what the state secured during a similar event five years ago. Even if a fraction of these are implemented, these are bound to be transformative for one of the poorest states in the Hindi-speaking heartland that has lagged behind in socio-economic development. Investments are typically attracted to richer industrialised states rather than to relatively poorer states—reinforcing the Biblical axiom, for whosoever hath, to him shall be given. In 2022 (till November), Maharashtra and Gujarat thus attracted around a third of the filed industrial entrepreneur memoranda (IEMs) and proposed investments in the country.
UP, in sharp contrast, accounted for 6.1% of filed IEMs and 2.5% of proposed investments, according to SIA statistics of the department for promotion of industry and internal trade. But, the good news is that in the last six years, there has been a concerted drive on the part of the state administration to ensure implementation of investment proposals. In 2022 (till November), three-quarters of the filed IEMs and proposed investments materialised. All of this augurs well for the implementation of MoUs inked during the recent summit in UP.
The emergence of UP as an investment destination stems, in large part, from the tremendous transformation that has taken place in the state during the last six years. Transport and logistics infrastructure is in place for seamless connectivity through a network of roads, railways, waterways and airways, which is bound to enhance the state’s appeal to potential investors, foreign and domestic. UP has one of the country’s biggest national highway networks with 13 existing and planned expressways. It is the only state that will have five international airports. Under the Regional Connectivity Scheme, seven airports have become operational. More are being built. With multimodal terminals at Varanasi, goods can be ferried on a fully functional river transportation network to Haldia and Chattogram in Bangladesh. Last month, prime minister Narendra Modi flagged off a river cruise from Varanasi in Uttar Pradesh to Dibrugarh in Assam via Bangladesh, exemplifying the tremendous potential for tourism. UP has also emerged as a key hub for IT/ITeS and leading electronics hardware exporter. Above all, it represents a huge market with nearly 250 million people, 56% of which is in the working age. If there is any state that is poised to leverage the demographic dividend, it is UP. UP’s successful Global Investor Summit reflects the concerted efforts of the central and state government to showcase its potential. Ahead of this event, the state government held several roadshows within the country and officials went abroad to attract FDI. But the effort was led by the PM who told investors that “If India is a bright spot for the world, it is Uttar Pradesh which is driving the growth of India.” The benefits of a “double-engine government” were evident with the participation of 23 Union ministers, chairing sessions with the concerned state ministers to assure investors of quick redressal of their concerns. With the state government seized of the imperative of attracting more investments, all eyes will therefore be on its efforts to implement these MoUs that is central to its aspirational objective of becoming a $1-trillion economy.