Uttar Pradesh is the most populous state in India, with a large pool of skilled, semi-skilled and unskilled labour. Alternately, the population is also looked upon as the largest consumer base in the country with around 200 million people. It is the largest producer of food grains among all states in India and accounted for about 18.39 per cent share in the country’s total food grain output in 2015-16. The state has become a hub for the semiconductor industry with several major players having their offices and research and development (R&D) centres in Noida.
Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 10.52 per cent to US$ 174.95 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 10.62 per cent to US$ 156.67 billion.
The state’s resources, policy incentives, infrastructure and climate are best suited for investments in diverse sectors such as Information Technology (IT), agro-based and food processing, light engineering goods, sports goods, textiles, leather-based, tourism and biotechnology.
The state has a well-developed social, physical and industrial infrastructure. It also has good connectivity through 48 national highways, six airports and rail links to all major cities. The state has witnessed a high rate of infrastructure growth in the recent past. There has been a considerable rise in the number of industrial clusters/hubs and Public-Private-Partnership (PPP) projects in the infrastructure domain.
The Uttar Pradesh State Industrial Development Corporation (UPSIDC) and the Department of Infrastructure and Industrial Development are responsible for the development of industrial infrastructure in the state.
The state has a robust industrial infrastructure, including 15 industrial areas, 12 specialised parks, four growth centres and industrial infrastructure development centres (IIDC). As of July 2016, the state had 19 notified special economic zones (SEZs). As per the 12th Five-Year Plan, the state’s industrial growth rate is expected to average 11.2 per cent per annum.
Some of the major initiatives taken by the government to promote Uttar Pradesh as an investment destination are: