UP Government Sets Ambitious $1 Trillion Target with Economic Advisory Group

The Uttar Pradesh government has established a Chief Minister's Economic Advisory Group (EAG) to support its $1 trillion target by 2027. The group, with a two-year term, comprises 16 leaders from various sectors, including Mohandas Pai, Vineet Rai, and Amit Kalyani. The group's first meeting was held on July 12, and its focus is on addressing unemployment and making UP a $1 trillion economy.

The Uttar Pradesh (UP) government has established a Chief Minister's Economic Advisory Group (EAG) to support its ambitious goal of becoming a $1 trillion economy by 2027. The group, which has a two-year term, comprises 16 leaders from various sectors, including Mohandas Pai, Vineet Rai, and Amit Kalyani. The EAG's first meeting was held on July 12, with a primary focus on addressing unemployment and driving economic growth.

The EAG is modeled after the Prime Minister's Economic Advisory Council and aims to provide independent and expert advice to the government. The group's members include high-profile figures from the private sector, academia, and non-governmental organizations. Mohandas Pai, former CFO of Infosys and leader of private equity fund Aarin Capital, kicked off the first meeting with a factoid highlighting the daily flights between Lucknow and Bengaluru due to children studying or working in Bengaluru. This observation sparked a discussion about the potential for developing the services sector in UP to retain talent and reduce out-migration.

The group's coordinator, Nachiket Tiwari, a professor at the Indian Institute of Technology, Kanpur, emphasized the importance of data-driven decision-making. The UP government has been collecting district-level GDP estimates, a first in the country, to inform policy and ensure that every district is contributing to the state's economic growth. The EAG is expected to provide ideas and interface them with the reality on the ground, informed by the data collected by the state government.

The EAG's formation comes at a time when UP is experiencing rapid economic growth. In 2020-21, UP's gross state domestic product (GSDP) amounted to ₹16.4 trillion, rising to ₹25.63 trillion in 2023-24 and projected to reach ₹29.57 trillion in 2024-25. The government aims to achieve a GSDP of ₹41 trillion by March 2026, representing a growth rate of about 15.9% at current prices, compared to India's growth rate of 13.6%.

The EAG's focus on addressing unemployment and structural reforms is crucial for UP to achieve its $1 trillion economy target. The group will be working towards decriminalizing labor law violations, promoting agro-tech startups, and fostering a business-friendly environment. The UP government's commitment to economic growth is evident in its recent efforts to engage with investment bankers and the private sector, a marked shift from its earlier stance.

The formation of the EAG underscores UP's determination to transform its economy and become a major player in India's growth story. With a strong focus on data, independent advice, and structural reforms, the group is well-positioned to support the state's ambitious economic targets.

References:
[1] https://www.facebook.com/InvestUPNew/posts/a-high-level-delegation-from-uttar-pradesh-in-japan-is-exploring-strategic-colla/1150385377123621/
[2] https://www.business-standard.com/india-news/uttar-pradesh-govt-s-1-trillion-target-gets-economic-advisory-support-125080300745_1.html
[3] https://www.nasdaq.com/articles/gears-report-q2-earnings-whats-cards-stock