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Factors Influencing Economic Growth of Uttar Pradesh : A Conceptual Framework |
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High Population and Lower Literacy and Skill
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1. While skilled human resources are a driving force
for economic growth, a balance between population and economic growth is
essential for the manpower to be absorbed by the productive sector
2. Skilled People Migrate from UP because of Low income and society, This leads to low HDI comparatively to other states and national average |
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Weak Agrarian Structure
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1. UP is a primarily agricultural state with about 78%
of their population living in rural areas and depending on agriculture
directly or indirectly.
2. Land, the primary basis of agriculture, and social and political power have remained in the hands of the elite class. 3. Huge agro-climatic potential and cheap agricultural labor, one could expect agriculture-led growth in UP similar to that in Punjab. But, UP is not able to utilize this potential for several reasons, including incomplete land reforms and low investment, inadequate physical infrastructure and poor institutional support |
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Poor Physical and Economic Infrastructure
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1. UP have not made enough investment in irrigation
infrastructure. Only 60% of agricultural land is irrigated in UP, compared
with 90% in Punjab and 87% in Gujarat
2. Owing to poor public infrastructure for surface water and increased water stress, farmers of Bihar have shifted to ground water irrigation as in the case of other states 3. Poor Railway and Road Infrastructure 4. Poor Constant Electricity |
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Low Budget Allocation
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1. UP have been receiving less per capita allocation
for development expenditure than any other of the states
2. Funds Not Used Well |
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Industrial Policy
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1. Bihar and UP had already fallen behind and in
addition they continued to be constrained by an unfriendly investment climate
arising from weak physical and social infrastructure and poor governance
2. The poor economic environment brought about by conflict and poor governance reduces the security of property rights, increases costs and the risks in investment. It drives investors to safer places and quick-earning activities 3. Low Private Sector Investment |
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Poverty
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India’s achievement of Millennium Development Goals
(MDGs) will be difficult unless poverty is reduced substantially in Uttar
Pradesh and Bihar
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Points Noted for Development
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UP is a large state with high diversity in economic
and social development. Eastern UP is lagging behind in economic development
in comparison with Western UP
1. Specific skills, capacities, and infrastructure for better utilization of human and physical capital 2. To design policies and strategies for accelerating economic and social development in Bihar and UP, it is vital to identify the underlying factors that have stalled development there. While huge efforts have been made to document the diverse patterns of economic growth in India 3. Focus on Agriculture and industrial growth 4. Focus on Tenders slow Progress or Breaked 5. Economic growth requires appropriate policies, institutions and technologies |
