Uttar Pradesh continues to be ahead of all other states once again in the total share of approved projects by banks and financial institutions as per the August 2023 bulletin of the Reserve Bank of India.
Uttar Pradesh continues to lead with a share of 16.2 per cent in 2022-23, maintaining its number one position for the second consecutive year.
The figures presented in the RBI bulletin indicate that under the leadership of Chief Minister Yogi Adityanath, Uttar Pradesh has not only gained the trust of investors from across the country and the world, but also from all national banks and financial institutions.
During the monsoon session of the legislative assembly, opposition leader Akhilesh Yadav mocked the one-trillion-dollar economy resolution and questioned the government about its roadmap. At that moment, Chief Minister Yogi stood up and addressed each of the opposition’s questions one by one.
The Reserve Bank of India’s August 2023 bulletin not only validates Chief Minister Yogi’s arguments, but also provides a strong response to critics.
The RBI report reflects the impact of measures taken by the Yogi government aimed at bringing about economic reforms in the state. During the period of 2013-14 to 2020-21, the average percentage share was 4.4. However, there has been remarkable improvement in the share of approved projects’ total cost by banks and financial institutions in the last two financial years. In 2021-22, Uttar Pradesh held a share of 12.8 per cent in the total cost, surpassing other states and maintaining its top position in this aspect.
Furthermore, in the period from 2021-22 to 2022-23, within just one year, there was a growth of 3.4 per cent in this share. These two years have seen an increase of 11.8 per cent in the state’s share of project costs, speaking volumes about the effective governance and leadership of Chief Minister Yogi Adityanath.
Analyzing this report based on the financial backing of projects brought together by banks and financial institutions, as well as expert calculations, reveals another significant point. Uttar Pradesh has witnessed a consistent trend of growth in its share in the total cost of projects approved by banks and financial institutions.
Notably, the growth was around 4.4 per cent on average between 2013-14 and 2020-21. Following that, it increased to 12.8 per cent in 2021-22, and further escalated to 16.2 per cent in 2022-23. This indicates that Uttar Pradesh has been continuously receiving support from the banking sector, ensuring ongoing investments from investors and projects.
In contrast, other states experience irregular growth patterns. While some states experienced sudden growth within a year, in some cases, there were significant fluctuations in the data between the period of 2013-14 to 2020-21 and the years 2021-22 and 2022-23. Some states even witnessed a decline in growth instead of an increase.
For instance, in Gujarat, where the average growth rate was 14.3 per cent between 2013-14 and 2020-21, it dropped to 14 per cent in 2022-23, a decrease of 0.3 per cent. Similarly, in Odisha, the average growth rate from 2013-14 to 2020-21 was around 4.5 per cent, which declined to 2.2 per cent in 2021-22. However, in 2022-23, there was a sudden increase, reaching 11.8 per cent.
Maharashtra saw a decline in its growth rate from an average of 13 per cent between 2013-14 and 2020-21 to 9.7 per cent in 2021-22 and further down to 7.9 per cent in 2022-23.
In Karnataka, the growth rate remained at an average of 8.5 per cent between 2013-14 and 2020-21, decreased to 6.9 per cent in 2021-22, and then slightly increased to 7.3 per cent in 2022-23.
Similarly, in other states, the growth rate decreased from an average of 9.4 per cent between 2013-14 and 2020-21 to 4 per cent in 2021-22 and 5.5 per cent in 2022-23.
Over the past six years, the Yogi government has made efforts to strengthen the economy by improving governance, expediting business decisions, enhancing business convenience, and implementing existing regulations effectively. The outcome of these efforts is evident from the Rs 36 lakh crore worth of investment proposals received during the Global Investors’ Summit held in February 2023.
A significant number of investors are motivated to establish their projects in Uttar Pradesh. The substantial economic requirements of these ventures have sparked enthusiasm among banks and financial institutions, leading them to provide rapid approval for project funding.
As the groundwork for these investment proposals materialises after the Global Investors’ Summit, this increased participation will set new benchmarks. It will play a pivotal role in realising Chief Minister Yogi’s vision of a one-trillion-dollar economy.
