Uttar Pradesh is aiming at high growth in the current 12th five-year Plan (2012-17), so far, as the industrial development is concerned.
It is targetting a composite growth of 8.5 per cent and total investments up to Rs 16.70 lakh crore. However, considering the credit-deposit ratio (CDR) and credit-investment deposit ratio (CIDR) have largely remained flat over the last couple of years, the task seems uphill.
The CDR and CIDR of UP, which stood at 48 per cent and 57.67 per cent at the end of March 2012 fell to 47.20 per cent and 55.53 per cent respectively at the end of September 2012. However, the advances and investments have not decreased in absolute terms, but their growth has been muted compared to the growth in the composite bank deposits in the state.
Experts have long blamed the laggard capacity of the state economy to absorb capital flows; as such its CDR and CIDR have remained rather flat.
UP’s targeted investment, include private and public investments of Rs 11.84 lakh crore and Rs 4.86 lakh crore respectively. The state is eyeing industrial and services growth rates of 7.10 per cent and 11.90 per cent respectively.
At the end of the second quarter of the current financial year (2012-13), the deposits and advances stood at about Rs 4,76,595 crore and Rs 2,24,956 crore respectively.
