UP tweaks growth rate target from 10 to 8.5%

Slowdown in domestic economy, difficult conditions in export markets prompts move

Uttar Pradesh has tweaked its growth rate target from 10 to 8.5 per cent due to the slowdown in the domestic economy and difficult market conditions in the key export markets of the West.

“The major export markets in the western world, including the US and Europe are also passing through difficult economic times. As such, the targets were bound to be revised keeping in mind the prevailing ground realities,” a key state government official told Business Standard. He also acknowledged that there had been a general slowdown in the domestic industrial sector over the last few years.

Soon after Akhilesh Yadav took over the reigns of UP as chief minister, the state government had announced ambitious key targets for economic and industrial growth.

Initially, the government was targetting to grow at 10 per cent during the current 12 th Plan (2012-17) period and composite investment of about Rs 16.70 lakh crore.

The disaggregated industrial and services growth rate had been pegged at 11.2 per cent and 11.9 per cent respectively, while the agricultural growth target was put at 5 per cent and employment generation to 10 million people.

However, while addressing the National Development Council (NDC) meeting in New Delhi on December 27, 2012, Yadav had announced that UP was aiming for a growth rate of 8.5 per cent set in the 12 th Plan. The state had reduced the industrial and services growth rate targets to 7.1 per cent and 10.9 per cent respectively.

The industrial growth rate witnessed the maximum tweaking from 11.2 per cent to 7.1. UP’s targetted investment, include private and public investments of Rs 11.84 lakh crore and Rs 4.86 lakh crore respectively.