states of tomorrow - uttar pradesh - 26 jan 2015

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World Business Times Insight: Uttar Pradesh, India

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The heartland of India awakes Find out the agenda of UP’s tech-savvy CM, Akhilesh Yadav

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Star of the show Roads, rail and the development of ports spell a new age for UP

Uttar Pradesh

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Female empowerment UP Government promotes gender equality

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January 26, 2015

WORLD BUSINESS TIMES SPECIAL REPORT DISTRIBUTED BY THE DAILY TELEGRAPH

This report is produced and published by World Business Times, which takes sole responsibility for the content

Unlimited potential Enriched with culture, art, industry, and tourism, India’s state of Uttar Pradesh has long been a land of opportunity with unlimited potential. Best known for being home to one of the seven wonders of the world, the Taj Mahal, Uttar Pradesh also accounts for the largest population in India making it a force to be reckoned with. Under the tutelage of the nation’s progressive and youngest-ever Chief Minister, the state is entering a new era of opportunity and is set to make quite an impression on the world stage. Timothy Walters reports IT WOULD seem that the stars have finally aligned for India, as the potential of the emerging market, which had been suppressed for so long, is finally starting to be released. Even though it has been a long time in coming, India finally has the political, and economic willpower to take the bull by the horns and show the world just what it has to offer. It is one of the only BRIC countries – which includes Brazil, Russia and China – expected to accelerate in the coming year. Brazil is teetering towards a tumbling economy with a negligible growth rate of 0.1 per cent in the third quarter of 2014. Russia is recording high interest rates, a vastly devalued currency and has few friends. China’s central bank is locking in stimulus measures to reboot the economy after a sharp slowdown and South Africa is trying to narrowly avoid the third downgrade in a year after ratings agency Fitch kept its rating at BBB in midDecember. India however appears poised for a different story thanks in part to its election of a pro-business Government in mid 2014. The will, the way and the means are there, which is why over the past year money managers have poured $16.5 billion into Indian stocks, the most of any developing country as tracked by the Institute of International Finance. In Mumbai, the financial capital of India, there’s smiles all round. The surging economic growth, profit expectations and a surprise move by the Reserve Bank of India (RBI) on 15 January of a 25 basis point reduction in interest rates, have pushed the Bombay Stock Exchange index, the Sensex, almost on a straight line upwards across 2014. It started the beginning of 2014 at 21,140, and earlier last week was trading above 28,000 – a significant rise. The International Monetary Fund is being bullish expecting growth in India to reach 6.4 per cent this year from 5.6 per cent last year. According to a report by the World Bank published earlier this month, they believe 2015 could be the year that India turns the corner, posting growth of around 7 per cent. In the shortterm, low oil prices are likely to increase GDP growth, ease the pressures of India’s high current account deficit and

INDUSTRIAL DEVELOPMENT Uttar Pradesh has reported a significant increase in its share of proposed industrial investments in the Northern Region of India as of October 2014. While the state garnered a 22.2 per cent share of investments in the entire year of 2013 the corresponding figure jumped to 42.2 per cent during the first 10 months of 2014. FOREIGN DIRECT INVESTMENT The cumulative foreign direct investment (FDI) inflows from April 2000 to October 2014 amounted to $418 million (including Uttarakhand and excluding National Capital Region). For the period April to November 2014, FDI inflows amounted to $46 million.

Source: India’s Department of Industrial Policy & Promotion GDP GROWTH RATE COMPARED TO REST OF INDIA (%) 2010 to ‘11 2011 to ‘12 2012 to ‘13 2013 to ‘14

UP 7.9 5.6 5.9 5.1

India 9.5 6.3 4.5 4.9

FDI: A new era dawns for UP WITH all of the development planned and underway in Uttar Pradesh (UP), there is ample opportunity for investment partners to come on board. The state has a great partner in the Indian federal Government, who is associating in much of UP’s expansion story, but inevitably there are significant investment opportunities for foreign players hoping to get a seat at the table at one of the most exciting regional growth stories around today. Opportunities abound for investment in traditional industries like food processing and tourism but the list of other areas ripe for foreign

As the world marches toward forging economic partnerships with this emerging economy the vast opportunities lay in its potential. Sectors such as healthcare, education, sanitation, security, technology, infrastructure development and women’s issues are in need of attention. For a country as vast and varied as India inevitably tackling these issues is most effective at a regional or state level, which is why Uttar Pradesh (UP) is rapidly being seen as a dynamo for the nation. With its persistent focus on undertaking initiatives to bolster development and promote progress, UP is determined to establish itself as an investment destination of choice for the global world. Geographically, Uttar Pradesh lies in the northern part of India and is nestled between Rajasthan to the west, Delhi to the northwest, Nepal to the north, Madhya Pradesh to the south and Bihar to the east, with the city of Lucknow as its administrative capital. Uttar Pradesh is the largest tourist destination in India that is home to the

With every effort being made to simplify the investment process, it’s no wonder the foreign direct investment climate in UP is heating up. Paul McNamara reports direct investment is exhaustive including IT, agriculture, services industry, crafts, hospitality, energy, infrastructure and real estate. To help change the perception of India being a country blighted by poor bureaucratic inefficiencies and prolonged delays the Government of UP has devoted time and energy to stripping away the red tape that is seen to impede investment and has worked to create an efficient, effective and simplified system for investors.

the results of these efforts can be seen everywhere in the state. One of the most significant developments implemented by the Chief Minister (CM) is the creation of the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) to oversee the development and planning of a new road network that will help to increase connectivity, pivot the state into a different league of industrial and commercial development and increase its competitive viability.

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iconic and world-renowned Taj Mahal. With a glorious history as the land of Rama, Krishna, Buddha and Mahavir there are countless shrines, temples and pilgrimages that UP has to experience. The basic statistics make for revealing reading: it is the fourth largest Indian state by area and has a population of around 200 million, making it the most populous state in India. Hindi is the official language and the state has a GDP of $77.7 billion, growing at a compound annual growth rate (CAGR) of 6 per cent between 2009 and 2014, with agriculture at (22 per cent), industry (21 per cent) and service industries (57 per cent) being the main contributors to its economy. But the dry statistics only hint at the potential and opportunity of a state poised on the cusp of a significant developmental phase. Under the aegis and leadership of a young, determined, tech-savvy and ambitious Chief Minister (CM), foreign investors are now looking at the state with renewed interest. The progressive CM has made a concerted

On the road to progress FOR most of its history Uttar Pradesh (UP) has been largely an agrarian society with well-developed farming and dairy sectors that have traditionally catered to a small local or regional market. In the past, the economic development of Uttar Pradesh has undoubtedly been held back by the lack of core infrastructure including roads, rail and power networks. In an effort to focus on growth opportunities for the common person and to create UP as an investment hub the Samajwadi Government has been tackling infrastructure as its main priority since it assumed office in 2012. Almost three years later

Uttar Pradesh Chief Minister up close AT THE helm of India’s most populated state, is Akhilesh Yadav, the youngest Chief Minister (CM) to hold office in India. Prior to leading the Samajwadi Party (SP), a socialist party dedicated to uplifting the poor, to victory in 2012 Akhilesh served as a three times Member of Parliament. It would seem that politics runs in the veins of the tech-savvy 41-year old, as he is the son of Mulayam Singh Yadav the founder of SP and the late Malti Devi. From fighting for farmer’s rights in the 1950’s to creating the political party in 1992, Akhilesh’s father Mulayam, or Netaji as he is affectionately called by those in political circles, has served as CM of Uttar Pradesh (UP) three times and as Minister of Defence for India from 1996 to 1998. At present he is serving as a Member of Parliament in the lower house, the Lok Sabha. Like his father before him, Akhilesh champions social empowerment for the poor but has combined that with an economic focus of creating jobs, building schools, constructing roads and developing essential infrastructure. All vital elements to improve the lives and well being of the rural poor, farmers, workers and down trodden members of society for which he, his father and party are staunch advocates. Many within the state believe Akhilesh’s education as a Civil Environment Engineer in India and a Masters in the same field from Australia have contributed to his political work and initiatives on development. Akhilesh is a doting husband to his wife Dimple Yadav, who was recently elected as a Member of Parliament, and an equally doting father to their three children, 13-year old Aditi and 8-year old twins Arjun and Tina. It would seem the young leader has perfected the art of managing multiple hats as a CM, party leader, husband, father, son, and friend. Perhaps most strikingly, Yadav is seen as someone who is calm, cool and collected regardless of the situation. Despite his upbringing as the son of one of the political dynamos of the country Akhilesh is viewed as an everyday person who empathises with the man on the street. He has made accessibility and advocacy for the poor a key hallmark style of his political leadership. Akhilesh has created an open door policy for the public, the bureaucrats, party officials and business and community leaders and uses this as an opportunity to listen and learn of their needs, and concerns. As a politician he is seen as a young, energetic and visionary leader who has worked his way through the grassroots. His public persona is perhaps best summed up by Dr. Roshan Jacob, a female district magistrate in UP, who says, “He is very optimistic, dynamic and a development oriented person. He is also very inclusive.”

Source: Central Statistics Office of India

help bring down inflation. The country’s changing fortunes illustrate how investors are eager to pile into the nation’s promise to unlock faster growth, at a time when most developing markets are slowing and wealthy economies are sluggish. For money managers who have billions to invest on behalf of large institutions, India may be one of the last developing economies of its size that can offer steady, high flying returns. And it’s not hard to see why. As the largest democracy in the world, with a population that tops 1.25 billion people, India is a powerhouse both in terms of its population and its potential, and as the seventh largest country in the world it is far from homogenous. On one hand India is home to a significant number of the world’s billionaires and on the other estimates show a third of the population is unable to read or write. Every state, city and village is home to millions of people with differing religions, traditions, cultures, languages, needs and varied economic realities.

effort to bring world-class infrastructure, industry and development to the state and to establish it as a global investment destination. Announced first in a budget speech for 2013-14, the Lucknow Metro Rail Project is a step towards ensuring greater transport connectivity for both its citizens and those wishing to do business. The mass rapid transit system envisaged is thoroughly futuristic and is set to be convenient, safe, fast, reliable and cost-effective. The Metro Rail Project is also set to redraw the entire development map of the city of Lucknow and catapult it into the next league of economic, social and political development nationally. To bring the project to life, the Lucknow Metro Rail Corporation has been set up as a 50/50 joint venture between the Government of India and the Government of Uttar Pradesh with funding for more than half of the project through senior debt from multilateral and bilateral agencies. This developmental project is running in tandem with another infrastructure project an Expressway from Agra (city of the Taj Mahal) to Lucknow. This freeway project is set to give a fresh boost to the pace of progress in the state as it facilitates the development of the myriad of small towns and villages along the route of the expressway. The project is forecast to double the pace of the state’s development, triple the size of its economy and attract substantial inward investment into Uttar Pradesh. The man at the helm and championing change in the state of Uttar Pradesh is Akhilesh Yadav, who in 2012 entered the history books as the youngest chief minister that the country ever had. It has been his persistence in implementing ideas and initiatives for prosperity of its citizens, reforms for governance, and opportunities for national and international investment, that has seen the fortunes of Uttar Pradesh rise. Educated in both India and Australia, well spoken in both Hindi and English, Akhilesh is seen as a new generation of young leaders who is taking Uttar Pradesh and its people to greener pastures.

UP is presently seeing a massive infrastructure shift with the most impressive projects undoubtedly centred on roads, rail and power. This is the face of the future. Victoria Shah reports


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