INTRODUCTION

1. UTTAR PRADESH WITH ROUGHLY 200 MILLION INHABITANTS IS THE MOST POPULOUS
STATE IN INDIA AS WELL AS THE MOST POPULOUS COUNTRY SUBDIVISION IN THE WORLD.
2. THERE IS AN AVERAGE POPULATION DENSITY OF 828 PERSONS PER KM².THE LITERACY
RATE OF THE STATE ACCORDING TO THE 2011 CENSUS IS 70.69%. WITH THE LITERACY RATE
FOR MALES AT 79.20%, WHILE IT IS 59.30% FOR THE FEMALES.
3. AGRICULTURE IS THE LEADING OCCUPATION IN UTTAR PRADESH AND PLAYS VITAL ROLE
IN THE ECONOMIC DEVELOPMENT OF THE STATE.
4. ACCORDING TO THE STATE BUDGET FOR 2017–18, UTTAR PRADESH’S GROSS STATE
DOMESTIC PRODUCT IS ₹16.89 LAKH CRORE WHICH IS THE FIFTH LARGEST IN INDIA.
5. STATE INDUSTRIES ARE LOCALISED IN THE KANPUR REGION. MAJOR MANUFACTURING
INCLUDES ENGINEERING PRODUCTS, ELECTRONICS, ELECTRICAL EQUIPMENT, CABLES,
STEEL, LEATHER, TEXTILES, JEWELLERY, FRIGATES, AUTOMOBILES, RAILWAY COACHES,
AND WAGONS. MEERUT IS THE SPORTS CAPITAL OF INDIA AND ALSO A JEWELLERY HUB.
MORE SMALL-SCALE INDUSTRIAL UNITS ARE SITUATED IN UTTAR PRADESH THAN IN ANY
OTHER STATE.
 CHALLENGES
1. SINGLE WINDOW SYSTEM: CONCERNS HAVE BEEN RAISED BY THE INDUSTRY REGARDING
THE INEFFECTIVE FUNCTIONING OF THE SINGLE WINDOW SYSTEM OF CLEARANCES
INTRODUCED BY UP GOVERNMENT. THE TIMELINES SPECIFIED IN THE ACT AND
GOVERNMENT ORDERS ARE NOT BEING ADHERED TO. MOREOVER, THERE ARE SEVERAL
WINDOWS BEHIND THE SINGLE WINDOW AND THUS, RESULTING IN PROCESSES BEING
CUMBERSOME.
2. INSTITUTIONAL MEMORY: FREQUENT BUREAUCRATIC TRANSFERS POSE A KEY
CHALLENGE IN TERMS OF MAINTAINING THE INSTITUTIONAL MEMORY WITHIN THE
SYSTEM.
3. POWER: THE INDUSTRIES HAVE BEEN COMPLAINING OF HIGH INDUSTRIAL TARIFFS IN THE
STATE, DUE TO HIGH CROSS SUBSIDIES. THIS INCREASES THE OVERALL COST OF DOING
BUSINESS FOR THE INDUSTRIES.
4. FINANCE FOR INDUSTRIES: THE MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) FACE
CHALLENGES IN GETTING ACCESS TO FINANCE FROM BOTH THE STATE FINANCE
CORPORATION AND THE BANKS.
 CHALLENGES:SCHEMES
1. UDYOG BANDHU IS A REGISTERED SOCIETY SET-UP BY THE UTTAR PRADESH
GOVERNMENT TO HELP ENTREPRENEURS WHO WANT TO INVEST IN THE STATE
BUT ITS HIGH POWERED COMMITTEE HAS HOWEVER, HAS REMAINED
DYSFUNCTIONAL .
2. LAND BANK SYSTEM: IT DOES NOT HAVE AN EFFECTIVE LAND BANK SYSTEM IN
PLACE TO FACILITATE LAND ALLOTMENT FOR INDUSTRIES. THERE IS A LOT OF
LAND IN UP BUT IS LYING VACANT AND HAS NOT BEEN ALLOTTED TOWARDS
DEVELOPMENT OF INDUSTRIES.
3. INFORMATION TO INDUSTRIES: HE INFORMATION REGARDING REFORMS HAS NOT
BEEN EFFECTIVELY DISSEMINATED TO THE INDUSTRIES. THE PROBLEM PERSISTS
MORE IN CASE OF THE MSMES WHO LACK INFORMATION REGARDING RELEVANT
POLICIES AND REGULATIONS.
4. POLITICAL SENSITIVITY: UP IS A HIGHLY POLITICALLY-SENSITIVE STATE. THUS,
WHATEVER DEVELOPMENTS ARE PLANNED, THEY ARE PRONE TO GREAT AMOUNT
OF POLITICAL CRITICISM.
 RECOMMENDATIONS
1. LESSONS FROM OTHER STATES UP NEEDS TO LEARN FROM THE EXPERIENCES AND BEST
PRACTICES OF OTHER STATES FOR AN EFFECTIVE FUNCTIONING OF ITS SINGLE WINDOW
SYSTEM IN ORDER TO TAKE DECISIONS ON TIME AND EFFICIENTLY IMPLEMENT THE SAME.
2. FOR EFFECTIVE IMPLEMENTATION OF POLICIES AND REFORMS ON THE GROUND, THE
STATE GOVERNMENT NEEDS TO HANDHOLD, BUILD CAPACITY, PROVIDE ADEQUATE
RESOURCES TO GOVERNMENT OFFICIALS BASED AT THE LOCAL LEVEL.
3. THE GOVERNMENT NEEDS TO EARMARK AVAILABLE LAND FOR INDUSTRIES TO SET UP
THEIR BUSINESSES. AN ONLINE LAND BANK SYSTEM NEEDS TO BE PUT IN PLACE, ALONG
WITH GIS MAPPING FACILITY.
4. BY CONDUCTING REGULATORY IMPACT ASSESSMENT THE GOVERNMENT CAN ENSURE
THAT ITS REGULATIONS ARE CONDUCIVE TO THE BUSINESS ORGANIZATIONS AND CAN
BRING IN EFFECTUAL CHANGES IN REGULATIONS.
 CONCLUSION
THE VASTNESS AND INTERNAL CULTURAL DIVERSITY IN UP, MAKES GOVERNANCE A
DIFFICULT TASK. ALSO, THE STATE IS HIGHLY POLITICALLY SENSITIVE, WHICH MAKES
POLICY MAKING DIFFICULT. HOWEVER, UP HAS A LONG WAY TO GO IN PROVIDING A
BUSINESS-FRIENDLY ENVIRONMENT TO INVESTORS. THE STATE PRIMARILY NEEDS TO
ESTABLISH AN EFFECTIVE SYSTEM OF CHECKS AND BALANCES TO MAKE ITS INVESTORS
LEVERAGE UPON ITS EFFORTS. FURTHER, CROSS LEARNING WITH OTHER STATES AND
LEARNING FROM ITS OWN MISTAKES COULD BE THE TWO STEPS FOR UP TO CLIMB UP THE
LADDER.