Uttar Pradesh, known as UP, is the most populous state of India, it has 240 million people. Yet it was one of the poorest states of India. Its GDP per capita is less than half of the country. But in recent years UP has been flourishing. In January 2024, Prime minister Modi made a visit to this state. Many investors and corporate bosses visited Ram temple alongside him. Since 2021, the UP is experiencing a growth rate of 9.2 percent annually, thanks to the vast investment by the government.
The talks about the Indian economy are concentrated in Bangalore, the IT center in the South or Mumbai the financial center of india. But in order to achieve the current government goal of development until 2047, (with a GDP per capita of $ 14000) Much more economic centers are needed. UP may be the next center. Or even Assam, recently Tata electronics plans to invest $3 billion on a chip plant there. It would create 27000 jobs in Assam which is usually considered to be a remote state.
The Indian growth domestic product grew at 8.4 percent in the last quarter of 2023. However the underlying trend is closer to 6.5 percent. The difference is the quirks in the measurement of GDP in India. The average growth rate in the last ten years was close to 5.6 percent. However, in a longer time horizon, the average growth of India since the early 1990s is 6.4 percent annually. And it all began when the Indian elite decided the highly regulated socialist system (the “license Raj”) which was followed for decades after independence needs wholesale reform. Of course it is fair to say that in the past ten years, the global economy was damaged by the pandemic. But anyway, the sluggish growth rate should be alarming. If the country aims to reach $14000 GDP per capita in 20247 a robust and sustained growth rate is needed.
Source: Economist
