Is Uttar Pradesh the Smartest State of India? An In-depth Look at the Facts

Uttar Pradesh (UP), a state with a vast population and wide-ranging socio-economic dynamics, has recently attracted attention for its high employability. The India Skill Report, spanning several years from 2015 to 2023, has consistently ranked UP among the top three states in terms of employable workforce, contributing significantly to its overall development and global reputation.

Employability Index and Economic Performance

In the 2021 Employability Index, UP prominently featured, bolstering its standing among the most skilled and employable states in India. This remarkable performance stands in stark contrast to other major states such as Bihar, which often ranks far below in this index. States like Jharkhand and Odisha occasionally join the top ten, while Kerala remains in the upper echelons. West Bengal, while seeing some fluctuations, consistently ranks within the top ten states.

Further examination reveals that cities within UP, such as Lucknow, also vie for top positions in the employability index. However, the state's impressive employability numbers mask some underlying challenges. For instance, infant mortality rates and life expectancy levels lag behind in UP, indicating significant public health issues that need urgent attention. Additionally, while the state has made strides in recent years, the labour force participation rate has seen a decline, which is a cause for concern.

Financial and Investment Trends

From a financial perspective, the nominal GDP per capita in UP's major cities is also noteworthy. For instance, cities like Noida and Lucknow have recorded impressive nominal GDP per capita figures, far exceeding the national average. The city of Lucknow, in particular, has demonstrated a high level of employable talent, placing it in the top ten cities in the national employability index. Despite these positive economic indicators, the state faces challenges in translating its skilled workforce into consistent business growth and large-scale industrial development.

Investment proposals in UP and West Bengal provide interesting insights into the regional economic landscape. According to the India Grid report, the Government of Uttar Pradesh has proposed a significant investment of approximately 114 billion USD, while West Bengal follows with a much smaller proposal of around 92 billion USD, which is less than half the population of UP. Although UP might have more investment proposals, the focus seems to be on smaller projects rather than large-scale ventures. This disparity suggests that UP needs to attract more substantial investment to drive significant economic growth.

The Business Landscape and Organizational Presence

Despite the high employability index and significant skill presence, it is puzzling why UP does not see more large-scale industrial and business activity. The presence of many micro, small, and medium enterprises (MSMEs) is evident, but the transition to larger, more impactful organizations remains a work in progress. The Jain Krishna (JK) Group, a prominent business conglomerate that dominated the Indian business scene in the mid-20th century, is a notable exception, which underscores the potential within UP. However, the decline of JK Group post-1980 indicates that the state's entrepreneurial spirit, while strong, requires sustained support and nurture.

Many from UP Quorans assert that the absence of a formal industry is one of the key reasons for the lack of large organizations. Nonetheless, the question remains: why are potential investors hesitating despite a high employable population? This disconnect indicates the need for a more comprehensive strategy that addresses the underlying challenges in the state.

Government Initiatives and Future Outlook

To fulfill Mr. Yogi Adityanath’s vision of making UP a trillion-dollar economy by 2030-2035, several key steps are necessary. First, the government must focus on improving public health infrastructure to address issues like infant mortality and lower life expectancy. Second, the labour force participation rate must be increased to encourage more individuals to contribute to the economy. Furthermore, attract substantial investment to spur industrial growth and business expansion.

For UP to achieve its ambitious economic goals, a multi-faceted approach is essential. Policymakers need to collaborate with industry leaders, civil society, and technology innovators to promote skill development, enhance health care, and foster entrepreneurship. Only through these concerted efforts can UP truly become the smartest state in India and realize its economic potential.