Global Investors Summit Shows UP Is Fast Becoming Investors’ Favored Destination

The Mahabharata-era legend of the Agroha Kingdom tells the story of the compassionate king Maharaja Agrasen. It is believed that Maharaja Agrasen distributed one gold coin and brick to every trader in the Agroha kingdom, resulting in the accumulation of one lakh gold coins and enough bricks among the traders, which encouraged business and real estate activities. The kingdom soon became enviably prosperous. This strategy of ‘inviting traders and giving them opportunities’ has stood the test of time for 5,000 years. Now, the Uttar Pradesh government seems to be adopting it to write a new success story for the state, known for the holy Ganges.

The success of the Global Investors Summit in Lucknow has reinforced the new identity of a resurging UP. Delegates from over 40 countries attended the summit, and Memorandums of Understanding (MoUs) for investments worth 33.50 lakh crores were signed. This is a new record for the country, but will this lead to India’s most populous state becoming the largest domestic economy? The strong faith reposed by the investors in the Yogi government will surely help the state grow into a one trillion-dollar economy. It will be a substantial contribution to India’s ambitions of becoming a $5 trillion economy before the end of this decade and ultimately entering the club of developed economies by
2047.

Investor summits are not new to the country or even the state. The previous Samajwadi Party government had organized three of them in Agra, Delhi, and Mumbai. The last such event in the state took place in 2018 under the Yogi government. However, things were different this time, not only in terms of the interest the summit evoked but also in the groundwork done by the state government. The Yogi Adityanath government wanted to convey the image of ‘UP means business’ to the
business world. The Chief Minister individually met many top corporate heads in Mumbai as a precursor to the summit. The state government also held a series of events in various Indian cities and abroad to build momentum for the summit.

The result was important MoUs finalized with delegates from Singapore, Denmark, Britain, Italy, UAE, Australia, and Japan. This year’s summit also benefited from the rising stature of India under PM Modi’s rule. The state has done well to calibrate its thinking and approach in tune with PM Modi’s vision of promoting ease of doing business and focusing on infrastructure development. It is now the world’s biggest labour market with a huge population of skilled youth. The Yogi government is focusing on 25 specific sectors to attract investors. It has also adopted a single-window clearance to expedite the investment process.

Uttar Pradesh has many ancient cities like Varanasi, Ayodhya, and Mathura where business is a complex blend of tradition and modernity. The state has a strong MSME network. It accounts for 60 per cent of the total mobile phone production in the country and tops all states in the manufacturing of mobile components.

The state’s improved law and order has bolstered the confidence of its trader community, while a stable and action-oriented government has attracted the attention of investors. Although some measures taken by the state government in this regard have faced criticism for being harsh, they have proven effective on the ground. According to data from the National Crime Records Bureau (NCRB), the state’s crime rate has decreased, with 6.08 lakh crime cases registered in 2021, a 7.5% reduction from the previous year’s 6.57 lakh, and a 3.2% decrease from 2019’s 6.28 lakh.

Under the leadership of Chief Minister Yogi Adityanath, the state has successfully countered divisive caste-based politics and focused on development through initiatives such as the ‘One District, One Product,’ which has benefited all sections and communities in the state. It has become an international success story, accounting for nearly 72% of the state’s total exports.

Once grouped with the laggard ‘BIMARU’ states (Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh), UP has become a symbol of hope, with Prime Minister Modi terming it the country’s growth engine. It is now seen as a stable, secure, and well-governed state with rapidly improving infrastructure such as highways, expressways, and airports, a vast land bank, and an improved policy framework.

This transformation is the result of Chief Minister Yogi Adityanath’s inclusive vision, which has freed the state’s politics from divisive agendas and diversified its trade to all parts. Previously, most investments were restricted to the National Capital Region (NCR), but proposed investments are now expected to benefit all 75 districts in the state, including the impoverished Bundelkhand and Eastern UP regions. While Noida still leads all regions with proposals worth 14.81 lakh crores or 45% of the total MoUs signed, Eastern UP has attracted investments worth 9.50 lakh crore rupees, accounting for 29% of the total proposed investment during the summit. Over 13% of the total investments, approximately 4.28 lakh crore, are expected to come to the central parts of the state, while the Bundelkhand area has also attracted proposals worth 4.27 lakh crores. If all these proposals come to fruition, over 93 lakh job opportunities will be created in the state.

The Yogi Adityanath government has succeeded in convincing investors of the possibilities of growth in UP through sincere actions on the ground, rather than mere promises. The business world seems convinced of the Chief Minister’s intent.