Impact of FDI on Uttar Pradesh Economy
Improved facilities in Uttar Pradesh have helped in attracting Foreign Direct Investments (FDI) in recent years. FDI is being encouraged in Uttar Pradesh to ensure the economic development of the state.
Advantages of Uttar Pradesh in terms of Attracting Foreign Direct Investments-
- Considering the investment proposals achieved by the state, it can be inferred that the investment climate in the state is quite encouraging. In 2004, the state received investment proposals amounting to USD 3.09 billion, in 2005 it amounted to USD 7.22 billion, and in 2006 it stood at USD 5.31 billion.
- Uttar Pradesh has an abundance of land and water
- Adequate power supply is available in this state.
- Land is available at competitive rates.
- Special facilities are available for both foreign investors as well as NRI investors.
- Various state financial institutions are being set up to provide institutional finance.
- Single table clearance system through Udyog Bandhu.
- Uttar Pradesh has special industrial areas for setting up of software technology parks, electronic city, toy city, plastic city,
- integrated agro park, leather parks, chemical complex and textile city.
- The state also has a large number of foreign banks.
FDI Inflows in Uttar Pradesh Economy-
There is a lot of scope for NRI investments in the state of Uttar Pradesh. The Indians have achieved an excellence by honing their entrepreneurial skills and abilities which led to a remarkable achievement of the Indians in every field of human activity in the overseas countries. The state government has decided to improve the environmental conditions of the state in order to attract more NRI investors for industrial developments. With regard to this, policies and systems are being reviewed in order to create a conductive environment for foreign direct investments in Uttar Pradesh. Projects entailing large-scale investments such as power, roads, bridges etc. are in need of foreign investments. The state government has set an organized plan to attract foreign investments in the state and aims at making Uttar Pradesh one of the leading states in Indian economy.