The Small and Medium Enterprises (SMEs) and startups have the potential to generate eight million jobs in Uttar Pradesh over the next five years with greater thrust in government policies and action.
In its pre-election agenda submitted to major political parties in run up to the coming 2017 polls, industry chamber ASSOCHAM
noted UP had consistently been posting high growth numbers in the past few years and has the potential to be a front-runner among peers if it carries on the momentum and attains double-digit growth in the next five years.
Promoting non-crop activities viz. animal husbandry, dairy, fisheries, floriculture, horticulture and poultry to create new employment
opportunities, strengthening self-employment
and entrepreneurship development programs, ensuring adequate and timely supply of credit at reasonable cost together with reforming existing labour laws were key suggestions to shore up employment
UP's contribution to India's economy
had declined from 8.78% in 2004-05 to 7.97% in 2011-12, but picked up to touch 8.16% in 2014-15. The state's growth not only surpassed India's economic growth in 2014-15, but its contribution to the country's economy
had shown consistent improvement, the chamber mentioned.
secretary general D S Rawat informed the chamber had formulated a 'Sustainable Action Plan' to achieve double-digit growth in UP over the next five years to help UP enter the 'high-income club of states'.
Besides, UP should sustain current level of workforce participation rate of 33% for the age group of 15-30 years. About 14 million people are already a part of the workforce.
Although UP attracted outstanding investment
worth about Rs 9,00,000 crore registering compounded annual growth rate (CAGR) of 23% during the nine-year period between 2006-07 and 2015-16, ensuring effective implementation should be the key priority of the new state government.
intentions into formal proposals by investors and consequential implementation further encourage private investment, the paper noted.
Agriculture and allied activities contributed about 13% to India's agriculture sector and 22% to UP's economy, besides employing almost 67% of the state's total workforce.
Although industrial sector contributes 20% to UP's economy
and about 7% to India's industry, poor infrastructure together with non-availability of land are major bottlenecks restricting new industries from being set up, which also hampers employment
"Developing infrastructure like roads, ensuring consistent power supply, imparting training to personnel together with cluster development of specific and traditional industries, strengthening agriculture-industry linkages and up-skilling micro, small and medium enterprises (MSME) workers are key thrust areas for industrial sector development in UP," highlighted the ASSOCHAM
Considering that services contributed 58% to UP's gross state domestic product (GSDP), promoting robust e-governance initiatives, encouraging private sector participation in sectors like banking, education, healthcare, telecom, transportation together with financial inclusion, imparting skill training to rural youth, ensuring upkeep of tourist hotspots and MICE (meetings, incentives, conferencing and exhibitions) tourism development held significant potential for growth.