MBM 202 BUSINESS ENVIRONMENT TERM PAPER: A CASE STUDY ON

UTTAR PRADESHS ATTRACTIVENESS FOR FDI

PRESENTED BY: EEBA AFSAR M.B.A. 2nd SEMESTER Roll no: 127609

INTRODUCTION
Economic policymakers in most countries go out of their way to attract foreign direct investment (FDI) A high level of FDI inflows is an affirmation of the economic policies India, a US$ 1.6 trillion economy is poised to become the third largest economy The reforms of 1991 significantly opened up opportunities for foreign direct and interstate investment in India

The diversity between Indian states is so broad that it is too simplistic to look at the Indian market only at a national level This is especially relevant given the federal character of Indias governance structure. Uttar Pradesh occupies a place of prominence in the Indian economy, Embedded with potential and challenges it is amongst the most promising states

UTTAR PRADESH STATE PROFILE

Uttar Pradesh is the fifth-largest state in India and accounts for 7.2 per cent of the total land area. It is home to 16.5 percent of Indians The GSDP of the state stood at Rs 4,200 billion during 2011- 12 registering a CAGR of 7 percent from Rs 2,608 billion during 2004- 05

Cumulative FDI inflows from April 2000 to July 2012 amounted to US$ 330 million. For the period April 2012 to July 2012, FDI inflows amounted to US $ 13 million.

SOCIO-ECONOMIC SCENARIO

IS UTTAR PRADESH A UTTAM PRADESH FOR FDI IN INDIA..???

FACTORS ATTRACTING FDI TO THE STATE

Abundant agro resource base High infrastructural growth Robust industrial infrastructure including theme parks, export parks & SEZs Dedicated Freight Corridor

Demographic dividend Stable political environment Policy and fiscal incentives UdyogBandhuthree-tier industrial development agency

Single-table clearance system Nivesh Mitra Huge market potential owing to a large domestic consumer base CII Partnership Summit

ROADBLOCKS FOR FDI IN THE STATE

Low competitiveness of state Poor social sector Power deficit Negative image Corruption

THRUST AREAS OR IMPORTANT SECTORS FOR FDI

IT and ITeS Agro and food processing Tourism and hospitality Cement Biotechnology Leather-based industry Auto and auto components

CONCLUSION
Uttar Pradesh is one of the fastest growing states in India and has shown a healthy growth path during the recent years The state is making considerable efforts for promoting industrial growth by offering range of attractive package of incentives and is on its way to rapid industrialization

What matters now is how these policies are implemented It is true, equally, that UP needs the right public posturing But unless it is backed by affirmative action, it will not yield results

Marketing initiatives undertaken by the state government attracted business interests worth several thousand crores of rupees. Government faces the challenge of creating an enabling environment Improvement in supply chain scenario, providing good infrastructure and warehousing facilities, strong market linkages, upgradation and modernization of technology and availability of cheap credit can help in stepping up of FDI in the state

THANK YOU.