UP targets 10% growth in 12th Plan

Possible, say experts the state grew at 7.5-8% in the 11th Plan

After clocking sub-8 per cent growth rate during the current 11th Five Year Plan (2007-12), the Uttar Pradesh government is targeting 10 per cent growth in the 12th Plan period beginning this April.

During the 11th Plan, UP had been growing at roughly 7.5-8 per cent, even during the 2008-09 global slowdown and ‘double dip’ recession in the current financial year. In previous years, the growth rate in UP was 5.5-6 per cent.

Now, the Samajwadi Party government is aiming gross state domestic product (GSDP) growth rate of 10 per cent during 2012-17. However, experts are optimistic of the state touching 10 per cent growth. The GSDP of UP is estimated to be around Rs 6,00,000 crore (current prices).

“The state agricultural growth rate has been around 4 per cent in recent years and the growth is likely to be maintained, especially aided by the Green Revolution project in eastern UP region,” Assistant Adviser, Department of Economic Policy and Research, Reserve Bank of India (RBI) Vineet Kumar Srivastava, told Business Standard.

However, the industrial sector growth rate has been rather laggard in the state and has been around 2-2.5 per cent, while services have been growing at 4-5 per cent.

“If the industrial growth rate is pulled up with intervention of sops and improvement in infrastructure, 10 per cent general growth rate is within reach,” he added.

Former UP chief secretary Atul Kumar Gupta, who is currently the chairman of State Finance Commission, said it was possible for UP to grow at 10 per cent. ‘There is a lot of potential in UP in the agricultural sector, while the industrial sector can also expand if the power and infrastructure situation is improved further,” he said.

He suggested that the state must improve upon the marketing of seeds and fertiliser, besides ramping up storage capacity to check wastage and pilferage of agro produce to further augment agricultural sector.

UP is looking at record foodgrain production of 51 million tonnes (mt) during the current 2011-12 crop year (July-June). This would be 3.7 mt more than last year, when total production had touched 47.3 mt and UP was feted by the Centre for highest production figures.