Uttar Pradesh's attractiveness for fdi

8/12/2019 Uttar Pradesh's attractiveness for fdi

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UTTAR PRADESHS

ATTRACTIVENESS FOR FDI

MBM 202

BUSINESS ENVIRONMENT TERM PAPER:

A CASE STUDY ON

PRESENTED BY:

EEBA AFSAR

M.B.A. 2ndSEMESTER

Roll no: 127609


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INTRODUCTION

Economic policymakers in most countries

go out of their way to attract foreign direct

investment (FDI)

A high level of FDI inflows is anaffirmation of the economic policies

India, a US$ 1.6 trillion economy is poised

to become the third largest economy

The reforms of 1991 significantly opened

up opportunities for foreign direct and

interstate investment in India


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The diversity between Indian states is so

broad that it is too simplistic to look at the

Indian market only at a national level

This is especially relevant given the federal

character of Indias governance structure.

Uttar Pradesh occupies a place of

prominence in the Indian economy,

Embedded with potential and challenges it

is amongst the most promising states


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UTTAR PRADESH STATE

PROFILEUttar Pradesh is the fifth-largest state in

India and accounts for 7.2 per cent of the

total land area.It is home to 16.5 percent of Indians

The GSDP of the state stood at Rs 4,200

billion during 2011- 12 registering a CAGRof 7 percent from Rs 2,608 billion during

2004- 05


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Cumulative FDI inflows from April 2000 to

July 2012 amounted to US$ 330 million.

For the period April 2012 to July 2012, FDIinflows amounted to US $ 13 million.


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SOCIO-ECONOMIC

SCENARIO


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IS UTTAR PRADESH A UTTAM

PRADESH FOR FDI IN INDIA..???


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FACTORS ATTRACTING FDI

TO THE STATEAbundant agro resource base

High infrastructural growth

Robust industrial infrastructure including

theme parks, export parks & SEZs

Dedicated Freight Corridor


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Demographic dividend

Stable political environment

Policy and fiscal incentives

UdyogBandhuthree-tier industrial

development agency


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Single-table clearance system Nivesh

Mitra

Huge market potential owing to a largedomestic consumer base

CII Partnership Summit


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ROADBLOCKS FOR FDI IN

THE STATELow competitiveness of state

Poor social sector

Power deficit

Negative image

Corruption


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THRUST AREAS OR IMPORTANT

SECTORS FOR FDI

IT and ITeS

Agro and food processingTourism and hospitality

Cement

Biotechnology

Leather-based industry

Auto and auto components


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CONCLUSION

Uttar Pradesh is one of the fastest growing

states in India and has shown a healthy

growth path during the recent yearsThe state is making considerable efforts for

promoting industrial growth by offering

range of attractive package of incentivesand is on its way to rapid industrialization


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What matters now is how these policies are

implemented

It is true, equally, that UP needs the rightpublic posturing

But unless it is backed by affirmative

action, it will not yield results


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Marketing initiatives undertaken by the

state government attracted business interests

worth several thousand crores of rupees.

Government faces the challenge of creating

an enabling environment

Improvement in supply chain scenario,

providing good infrastructure and

warehousing facilities, strong market

linkages, upgradation and modernization of

technology and availability of cheap credit

can help in stepping up of FDI in the state


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THANK YOU.

Uttar Pradesh's attractiveness for fdi

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