CII chief meets CM Yadav; refutes ‘landlocked-state’ theory as a hindrance for growth; asks for implementation of GST as a tool to accelerate growth
Uttar Pradesh has the potential to grow at a double-digit rate with the right policy framework, said Godrej Group Chairman and Confederation of Indian Industry (CII) President Adi Godrej after meeting UP Chief Minister Akhilesh yadav here yesterday.
He said the real strength of UP was its big market and massive population base, which could be leveraged through proactive economic policies and their proper implementation.
The industrial growth has not been impressive in UP over the past several years and its industry-centric perception has also taken a beating, said Godrej.
To a Business Standard query, Godrej said being landlocked could not be viewed as a drawback for UP as several countries had posted tremendous growth in similar geographical conditions.
“Switzerland is a landlocked country, but it has not prevented it from development. The prime factor in any economic growth story is policy intervention. We also have the example ofBihar, which has been clocking high growth of late,” he stressed.
A delegation led by Godrej submitted Confederation of Indian Industry’s (CII) developmental agenda for UP, which aims at creating an environment conducive for inclusive and sustainable growth. To attract investments, the CII has recommended that UP should strengthen the single window mechanism and ensure effective execution of policies. The CM reaffirmed commitment to make Udyog Bandhu (state industry interface) an empowered agency to facilitate investment. “We have also suggested that UP should proactively engage industry both nationally and internationally to showcase Brand UP,” Godrej informed.
Meanwhile, the state government offered industry to utilise the existing infrastructure of ITIs as skills development centres.
The CII is proposing Invest North Conclave to showcase investment opportunities with special focus on Brand UP.
Godrej said UP should support the implementation of Goods and Service Tax (GST) as it would be a game changer for both India and UP in accelerating economic growth by 1.5-2 per cent.
At the state level, CII will advocate key reforms in agriculture, power, land acquisition and reforms related to procedural and clearance issues faced in setting up new businesses.
Agriculture and allied sector grew at 2.5 per cent Compounded Annual Growth Rate (CAGR) over 2004-05 and 2009-10. It contributed 24 per cent to State’s Gross State Domestic Product (GSDP) in 2009-10.
