As the UP elections are in last phase, every political party seems to be promising loads of development and freebies but it will be interesting to see that which winning party keeps its promises. Getting out of the elections, it is necessary to analyze the current economic situation in Uttar Pradesh.
Despite of being called a BIMARU Rajya, UP is the third largest economic state after Maharashtra and Tamil Nadu. With the nominal GDP of $161 billion in 2014-15, UP has all the potential to be in the first spot. Yet the situation of commoners is not good. The Rangarajan committee report of 2011-12 stated that nearly 39% of UP’s population lies below the poverty line.
Economic Situations in Uttar Pradesh:
UP’s growth rate has remained the slowest in last 9 years according to ASSOCHAM. The compounded annual growth was measured to be 6.9% in terms of GSDP, which is the slowest among BIMARU states including MP, Rajasthan and Bihar. The major reason is the closing down of industries due to bad policies of state governments and poor infrastructure.
The rise of crime in UP, specially the organized crime against traders and industrialists has been the biggest reason. Most traders say that the government is in bed with the criminals and healthy percentage of extortion money is shared with the ministers of the government. Investors fear investing in UP due to the same issue.
A proportionate amount of money needs to be paid to the criminals in order to safeguard your business. With the lack of infrastructures, roads, buildings, electricity supply, security, UP’s educated class had to migrate to other states in order to find a living. The education sector is also weak and corrupt. Having 5 central and 20 state universities, education is in the weakest state.
How Uttar Pradesh’s Development can contribute in India’s Growth?
UP is the most populated state in India with the population of 190 Million people which constitutes to around 16.16% of India’s population. The population has fair amount of youths which are educated but unemployed. By solving their problem, providing world class education and job opportunities, UP can contribute to India’s growth.
Major initiatives are needed to be taken in order to provide a stable platform for UP’s development. The education system, infrastructure, ease of doing business, investment, industrialization and agricultural growth are the key areas where the government needs to focus in order to develop Uttar Pradesh which can further boost India’s growth.