Lucknow, 18 October , 2024 – Chief Minister Yogi Adityanath held an important meeting on Friday to discuss ongoing efforts, results achieved so far, and future policies aimed at realizing the goal of transforming the state into a trillion-dollar economy. The meeting was attended by various ministers, senior government officials, advisors, and experts. The Chief Minister reviewed the progress in all ten sectors.
Deloitte India, the consulting agency, provided detailed sector-wise insights into the current economic environment of the state, including anticipated future outcomes and industry expectations.
The Chief Minister outlined major guidelines during this special meeting.
Due to planned efforts of the last 07 years, the economy of Uttar Pradesh is in an all-time best condition today. The total GDP of the state in 2021-22 was ₹ 16.45 lakh crore, which has increased to more than ₹ 25.48 lakh crore today in 2023-24. This year our GSDP target is ₹ 32 lakh crore. With the cooperation of all, this target will also be achieved. In these 07 years, GDP and per capita income have more than doubled. Today, Uttar Pradesh is becoming the growth engine of the country’s development as the second-largest economy of the country. Our efforts for sector-wise development are yielding unexpected results. More growth has been seen as compared to the target set for Gross Value Added (GVA) for different sectors for the financial year 2023-24. The estimated GVA for agriculture and allied sectors has been 5.98 lakh crore as compared to 5.85 lakh crore, manufacturing 2.79 lakh crore as compared to 2.48 lakh crore, an increase of 129% has been registered as compared to the estimated GVA of transport, storage and communication. The growth rate of trade, hotels, transport and communication services related to broadcasting has increased.
Similar is the situation in other sectors as well. Overall, in 2023-24, the gross value added has been 23.24 lakh crore as compared to the estimated GSVA of 23 lakh crore for the state. This situation shows the better condition of the economy.
The contribution of all departments is crucial to achieving the $1 trillion target. This is an ambitious goal, and last year’s report card reflects the proactive efforts of the departments. Our policy and planning are on the right track, but we need to accelerate our pace to meet this significant target. Regular monitoring is essential, and to facilitate this, a nodal officer should be appointed in each department. The nodal officer will conduct weekly review meetings, with fortnightly reviews at the Principal Secretary level and monthly reviews at the departmental minister level.
Accurate data collection is essential for success. It is important to establish communication and coordination with the Ministry of Statistics and Program Implementation (MoSPI) to leverage their expertise. We should organize workshops and training sessions for statistical officers within each department to ensure accurate assessments. The higher the quality of our data, the more effectively we can work toward our goals.
In 2023-24, the state recorded a Compounded Annual Growth Rate (CAGR) of approximately 16%, which is promising. Our target for the current year is 25%, and all departments must intensify their efforts to achieve this goal. Our objectives are clear, and it will require collaborative action to implement effective policies and strategies.
Opportunities exist in every sector, and we must encourage innovation. The seed ecosystem in agriculture needs improvement, necessitating increased efforts such as the establishment of seed parks. Additionally, we must enhance crop diversification and supply chain management by promoting the cultivation of pulses, oilseeds, and millets among farmers.
Significant efforts are needed to double the growth rate of grain, fruit, and vegetable production. Initiatives like ‘per block one crop’ should be promoted within the horticulture sector. We must train farmers, provide necessary resources, and encourage them to embrace innovative practices.
The principle of Reform, Perform, and Transform has yielded excellent results in the secondary sector of the economy. The rapid growth of the manufacturing sector is promising. To meet future demands, we must intensify our efforts to expand the land bank, implement policy reforms, and enhance the ease of doing business. Many investors are eager to invest in Uttar Pradesh, and we are receiving numerous proposals for textile parks, solar parks, and recreational parks. We should seize this favorable opportunity.
Land will be essential for industrial projects, and everyone must make additional efforts. We have made arrangements to utilize Gram Samaj land for industrial development and MSMEs. The land pooling policy needs further refinement. Identify land that has been allocated but remains unused and make informed decisions regarding it. We must also identify ‘sick units’ and determine appropriate actions for their revitalization. The action plan for industrial clusters should be advanced.
Investment and land acquisition cases should not remain unresolved. District Magistrates will be held accountable for any delays. It is crucial to implement MoUs effectively. The processes for various approvals must be time-bound, with approvals automatically granted upon the expiration of the stipulated time frame. The public grievance system should be enhanced to provide better assistance.
To achieve the OTDE goals, we need to further increase both private and public investment. Ongoing engagement with investors is essential, as well as outreach to new sectors and prospective investors. We must promote the unique selling propositions (USPs) of our state and improve our investor outreach efforts. The single-window system should be made simpler and more transparent to facilitate investment.
The energy sector must focus on future needs. The state government has introduced a policy to promote non-conventional energy sources, and we are receiving positive responses from investors in the solar and biomass sectors. We need to enhance our solar energy capacity and strive to expand the coverage of the PM Surya Ghar Yojana throughout the state.
The state is making rapid strides in the tertiary sector, which includes hotels, restaurants, transport, communication, real estate, professional services, and other services. Key centers such as Ayodhya, Mathura-Vrindavan, Kashi, Prayagraj, and Naimisharanya have undergone significant transformations over the past seven years, resulting in an unprecedented increase in tourist footfall. So far this year, over 62 crore tourists have visited, which will greatly benefit the local economy. The Prayagraj Maha Kumbh is scheduled for next year and is expected to have a substantial impact on the entire state’s economy. We should identify and enhance the branding of centers like Naimisharanya and Vindhyadham while promoting the Buddhist circuit in relevant countries. Additionally, public facilities at tourist destinations need to be improved.
The IT sector has been designated as an industry, with Gautam Buddha Nagar emerging as a global hub for IT/ITES. We should work towards establishing an IT/ITeS testing center in the state. Land for the AI City has been identified in Lucknow, and we must expedite the related policy development and project execution. We have also received proposals for drone manufacturing and training. To fully capitalize on these opportunities, we should implement our drone policy as soon as possible. Moreover, a facilitation office for start-up registration should be established in both Noida and Kanpur.
Concrete efforts must be undertaken to enhance the transport sector. We should implement bus services in underserved areas and seek collaboration with the private sector. A waterway transport authority has been established, and we expect to see positive results in this area shortly
We are receiving substantial proposals from the private sector for hospitals, housing, and hotels, indicating significant growth potential in this sector. It is essential to simplify regulations while considering practicality and understanding investors’ expectations. This entire sector will contribute positively to both economic development and the improvement of living standards.
Targets for each department regarding the OTDE have already been established. Continuous progress reviews are crucial, alongside the capacity building of every department. An action plan for reforms should be developed and implemented with clear deadlines for each task. Notably, this is the same state that generated just ₹12,000 crore in excise revenue in 2016-17, which has now increased to ₹52,000 crore. This demonstrates that the issue was not a lack of capability but rather a lack of willpower.
For Uttar Pradesh to become self-reliant, it is imperative that municipal bodies and village panchayats also achieve self-sufficiency. A concrete action plan should be developed to enhance their revenue. Whether in villages or towns, every citizen should have access to quality roads, clean drinking water, and improved public facilities. The progress of aspirational districts and development blocks should be regularly reviewed, and any deficiencies should be promptly addressed.
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