Background Image
Table of Contents Table of Contents
Previous Page  1 / 8 Next Page
Information
Show Menu
Previous Page 1 / 8 Next Page
Page Background

IT WOULD

seem that the stars have

finally aligned for India, as the potential

of the emerging market, which had been

suppressed for so long, is finally starting

to be released. Even though it has been

a long time in coming, India finally has

the political, and economic willpower to

take the bull by the horns and show the

world just what it has to offer.

It is one of the only BRIC countries

– which includes Brazil, Russia and

China – expected to accelerate in the

coming year. Brazil is teetering towards

a tumbling economy with a negligible

growth rate of 0.1 per cent in the

third quarter of 2014. Russia is recording

high interest rates, a vastly devalued

currency and has few friends. China’s

central bank is locking in stimulus

measures to reboot the economy after

a sharp slowdown and South Africa

is trying to narrowly avoid the third

downgrade in a year after ratings agency

Fitch kept its rating at BBB in mid-

December.

India however appears poised for

a different story thanks in part to its

election of a pro-business Government

in mid 2014. The will, the way and the

means are there, which is why over the

past year money managers have poured

$16.5 billion into Indian stocks, the most

of any developing country as tracked by

the Institute of International Finance. In

Mumbai, the financial capital of India,

there’s smiles all round. The surging

economic growth, profit expectations

and a surprise move by the Reserve

Bank of India (RBI) on 15 January of

a 25 basis point reduction in interest

rates, have pushed the Bombay Stock

Exchange index, the Sensex, almost on

a straight line upwards across 2014. It

started the beginning of 2014 at 21,140,

and earlier last week was trading above

28,000 – a significant rise.

The International Monetary Fund is

being bullish expecting growth in India

to reach 6.4 per cent this year from 5.6

per cent last year. According to a report

by the World Bank published earlier this

month, they believe 2015 could be the

year that India turns the corner, posting

growth of around 7 per cent. In the short-

term, low oil prices are likely to increase

GDP growth, ease the pressures of

India’s high current account deficit and

help bring down inflation.

The country’s changing fortunes

illustrate how investors are eager to pile

into the nation’s promise to unlock faster

growth, at a time when most developing

markets are slowing and wealthy

economies are sluggish. For money

managers who have billions to invest on

behalf of large institutions, India may be

one of the last developing economies of

its size that can offer steady, high flying

returns. And it’s not hard to see why.

As the largest democracy in the

world, with a population that tops 1.25

billion people, India is a powerhouse

both in terms of its population and its

potential, and as the seventh largest

country in the world it is far from

homogenous. On one hand India is home

to a significant number of the world’s

billionaires and on the other estimates

show a third of the population is unable

to read or write. Every state, city and

village is home to millions of people

with differing religions, traditions,

cultures, languages, needs and varied

economic realities.

As the world marches toward

forging economic partnerships with

this emerging economy the vast

opportunities lay in its potential. Sectors

such as healthcare, education, sanitation,

security, technology, infrastructure

development and women’s issues are in

need of attention. For a country as vast

and varied as India inevitably tackling

these issues is most effective at a regional

or state level, which is why Uttar Pradesh

(UP) is rapidly being seen as a dynamo

for the nation. With its persistent focus

on undertaking initiatives to bolster

development and promote progress, UP

is determined to establish itself as an

investment destination of choice for the

global world.

Geographically, Uttar Pradesh lies in

the northern part of India and is nestled

between Rajasthan to the west, Delhi

to the northwest, Nepal to the north,

Madhya Pradesh to the south and Bihar

to the east, with the city of Lucknow as

its administrative capital.

Uttar Pradesh is the largest tourist

destination in India that is home to the

iconic and world-renowned Taj Mahal.

With a glorious history as the land of

Rama, Krishna, Buddha and Mahavir

there are countless shrines, temples and

pilgrimages that UP has to experience.

The basic statistics make for

revealing reading: it is the fourth largest

Indian state by area and has a population

of around 200 million, making it the

most populous state in India. Hindi is

the official language and the state has

a GDP of $77.7 billion, growing at a

compound annual growth rate (CAGR)

of 6 per cent between 2009 and 2014,

with agriculture at (22 per cent), industry

(21 per cent) and service industries (57

per cent) being the main contributors to

its economy.

But the dry statistics only hint at

the potential and opportunity of a state

poised on the cusp of a significant

developmental phase. Under the aegis

and leadership of a young, determined,

tech-savvy and ambitious Chief Minister

(CM), foreign investors are now looking

at the state with renewed interest. The

progressive CM has made a concerted

effort to bring world-class infrastructure,

industry and development to the state

and to establish it as a global investment

destination.

Announced first in a budget speech

for 2013-14, the Lucknow Metro Rail

Project is a step towards ensuring

greater transport connectivity for both

its citizens and those wishing to do

business. The mass rapid transit system

envisaged is thoroughly futuristic

and is set to be convenient, safe, fast,

reliable and cost-effective. The Metro

Rail Project is also set to redraw the

entire development map of the city of

Lucknow and catapult it into the next

league of economic, social and political

development nationally. To bring the

project to life, the Lucknow Metro Rail

Corporation has been set up as a 50/50

joint venture between the Government

of India and the Government of Uttar

Pradesh with funding for more than half

of the project through senior debt from

multilateral and bilateral agencies.

This

developmental

project

is running in tandem with another

infrastructure project an Expressway

from Agra (city of the Taj Mahal) to

Lucknow. This freeway project is set

to give a fresh boost to the pace of

progress in the state as it facilitates

the development of the myriad of

small towns and villages along the

route of the expressway. The project

is forecast to double the pace of the

state’s development, triple the size of its

economy and attract substantial inward

investment into Uttar Pradesh.

The man at the helm and

championing change in the state of

Uttar Pradesh is Akhilesh Yadav, who

in 2012 entered the history books as the

youngest chief minister that the country

ever had. It has been his persistence

in implementing ideas and initiatives

for prosperity of its citizens, reforms

for governance, and opportunities for

national and international investment,

that has seen the fortunes of Uttar

Pradesh rise.

Educated in both India and

Australia, well spoken in both Hindi

and English, Akhilesh is seen as a new

generation of young leaders who is

taking Uttar Pradesh and its people to

greener pastures.

Enriched with culture, art, industry, and tourism, India’s state of Uttar Pradesh has long been a land of opportunity with unlimited potential. Best

known for being home to one of the seven wonders of the world, the Taj Mahal, Uttar Pradesh also accounts for the largest population in India making

it a force to be reckoned with. Under the tutelage of the nation’s progressive and youngest-ever Chief Minister, the state is entering a new era of

opportunity and is set to make quite an impression on the world stage.

Timothy Walters

reports

World Business Times Insight:

Uttar Pradesh, India

7

UP Government

promotes gender

equality

Female

empowerment

This report is produced and published by World Business Times, which takes sole responsibility for the content

www. w o r l d - b u s i n e s s t i m e s . c o m

2

Find out the agenda of

UP’s tech-savvy CM,

Akhilesh Yadav

The heartland

of India awakes

January 26, 2015

Unlimited potential

WORLD BUSINESS TIMES SPECIAL REPORT DISTRIBUTED BY THE DAILY TELEGRAPH

Roads, rail and the

development of ports

spell a new age for UP

Star of the show

Uttar Pradesh

Chief Minister

up close

5

World Business Times is a leading global provider of business intelligence and insight

AT THE

helm of India’s most populated state, is

Akhilesh Yadav, the youngest Chief Minister (CM)

to hold office in India. Prior to leading the Samajwadi

Party (SP), a socialist party dedicated to uplifting the

poor, to victory in 2012 Akhilesh served as a three

times Member of Parliament.

It would seem that politics runs in the veins of the

tech-savvy 41-year old, as he is the son of Mulayam

Singh Yadav the founder of SP and the late Malti

Devi. From fighting for farmer’s rights in the 1950’s

to creating the political party in 1992, Akhilesh’s

father Mulayam, or Netaji as he is affectionately

called by those in political circles, has served as CM

of Uttar Pradesh (UP) three times and as Minister of

Defence for India from 1996 to 1998. At present he

is serving as a Member of Parliament in the lower

house, the Lok Sabha.

Like his father before him, Akhilesh champions

social empowerment for the poor but has combined

that with an economic focus of creating jobs, building

schools, constructing roads and developing essential

infrastructure. All vital elements to improve the lives

and well being of the rural poor, farmers, workers

and down trodden members of society for which

he, his father and party are staunch advocates.

Many within the state believe Akhilesh’s education

as a Civil Environment Engineer in India and a

Masters in the same field from Australia have

contributed to his political work and initiatives

on development.

Akhilesh is a doting husband to his wife Dimple

Yadav, who was recently elected as a Member of

Parliament, and an equally doting father to their

three children, 13-year old Aditi and 8-year old twins

Arjun and Tina. It would seem the young leader has

perfected the art of managing multiple hats as a CM,

party leader, husband, father, son, and friend.

Perhaps most strikingly, Yadav is seen as

someone who is calm, cool and collected regardless

of the situation. Despite his upbringing as the son of

one of the political dynamos of the country Akhilesh

is viewed as an everyday person who empathises

with the man on the street. He has made accessibility

and advocacy for the poor a key hallmark style of

his political leadership. Akhilesh has created an

open door policy for the public, the bureaucrats,

party officials and business and community leaders

and uses this as an opportunity to listen and learn of

their needs, and concerns. As a politician he is seen

as a young, energetic and visionary leader who has

worked his way through the grassroots. His public

persona is perhaps best summed up by Dr. Roshan

Jacob, a female district magistrate in UP, who says,

“He is very optimistic, dynamic and a development

oriented person. He is also very inclusive.”

Find out his real agenda on Pg 2

FOR

most of its history Uttar Pradesh (UP) has

been largely an agrarian society with well-developed

farming and dairy sectors that have traditionally

catered to a small local or regional market. In the

past, the economic development of Uttar Pradesh

has undoubtedly been held back by the lack of

core infrastructure including roads, rail and power

networks.

In an effort to focus on growth opportunities

for the common person and to create UP as an

investment hub the Samajwadi Government has

been tackling infrastructure as its main priority since

it assumed office in 2012. Almost three years later

the results of these efforts can be seen everywhere

in the state.

One of the most significant developments

implemented by the Chief Minister (CM) is the

creation of the Uttar Pradesh Expressways Industrial

Development Authority (UPEIDA) to oversee the

development and planning of a new road network

that will help to increase connectivity, pivot the

state into a different league of industrial and

commercial development and increase its

competitive viability.

FDI:

A new

era dawns

for UP

WITH

all of the development planned and

underway in Uttar Pradesh (UP), there is ample

opportunity for investment partners to come

on board. The state has a great partner in the

Indian federal Government, who is associating

in much of UP’s expansion story, but inevitably

there are significant investment opportunities for

foreign players hoping to get a seat at the table

at one of the most exciting regional growth stories

around today.

Opportunities abound for investment in

traditional industries like food processing and

tourism but the list of other areas ripe for foreign

direct investment is exhaustive including IT,

agriculture, services industry, crafts, hospitality,

energy, infrastructure and real estate.

To help change the perception of India

being a country blighted by poor bureaucratic

inefficiencies and prolonged delays the

Government of UP has devoted time and

energy to stripping away the red tape

that is seen to impede investment and has worked

to create an efficient, effective and simplified

system for investors.

With every e ort being made

to simplify the investment

process, it’s no wonder the

foreign direct investment

climate in UP is heating up.

Paul McNamara reports

Continued on page 3

On the

road to

progress

UP is presently seeing a massive

infrastructure shift with the most

impressive projects undoubtedly

centred on roads, rail and

power. This is the face of the

future.

Victoria Shah reports

Continued on page 4

INDUSTRIAL DEVELOPMENT

Uttar Pradesh has reported a

significant increase in its share of

proposed industrial investments in the

Northern Region of India as of October

2014. While the state garnered a 22.2

per cent share of investments in the

entire year of 2013 the corresponding

figure jumped to 42.2 per cent during

the first 10 months of 2014.

FOREIGN DIRECT INVESTMENT

The cumulative foreign direct

investment (FDI) inflows from April

2000 to October 2014 amounted to

$418 million (

including Uttarakhand

and excluding National Capital Region

).

For the period April to November 2014,

FDI inflows amounted to $46 million.

Source: India’s Department of

Industrial Policy & Promotion

GDP GROWTH RATE COMPARED

TO REST OF INDIA (%)

UP

India

2010 to ‘11

7.9

9.5

2011 to ‘12

5.6

6.3

2012 to ‘13

5.9

4.5

2013 to ‘14

5.1

4.9

Source: Central Statistics O ce of India

Uttar

Pradesh