Uttar Pradesh Economy in Doll Drums – An AIPF Report  

uttar pradesh

All India Peoples Front (AIPF) has brought out a booklet titled “Uttar Pradesh at a Glance” presenting a voluminous documentary evidence with solid figures to explain the current situation in Uttar Pradesh (UP). The 20-page booklet released by SR Darapuri, the National President of the organization, has many parts, which is written by the founder member Akhilendra Pratap Singh. In the booklet, not only the financial condition of the state, but also the condition of agriculture, health, education, employment, banking, and manufacturing has been examined in detail. It has been told through basic data and concrete facts that the economy of UP has come to a standstill, to bring it back on track, the government does not have any concrete plan.

Uttar Pradesh is the largest state in the country with 75 districts and a population of around 25 crores. AIPF has probed the deep pulse of its situation and told that the economy of UP has gone off the rails. The condition of health, education, employment, agriculture, and industry is pathetic. If this is not taken care of, then in a few years the situation will turn from bad to worse. There is only one way to save the state, that the people here understand the condition of their state’s economy. People should come together for democracy and inclusive development, make Uttar Pradesh a leading state of the country.

The salient points brought out in the booklet are: –

  1. Investment in Uttar Pradesh

In order to bring capital from outside to Uttar Pradesh, there is a lot of discussion of Investors’ Meet and investment from time to time. In the Investors’ Meet held in Lucknow in February 2018, 1045 investment proposals worth Rs 4.28 lakh crore were sent to the government.” If the official figures are to be believed, till now only Rs 51,240 crore has been invested in the state.

In the year 2023 also, the government is talking about a big Investors’ Meet, in which investment of Rs 10 lakh crore is being talked about. Based on the media reports and the experience of previous foreign investment, people are feeling that in the name of investment government ministers and officials are on foreign tours.

  1. Flight of Capital from Uttar Pradesh

According to the survey, it is worth noting the fact that there is a wide variation in the bank credit deposit ratio in UP. In the year 2020-21, the deposits of the people here in banks were Rs 12,87,176 crores, and the loan given is Rs 5,25,691 crores. Every year there is an exodus of capital from the state to other states like Maharashtra and Gujarat. If loans for self-employment were available from the money deposited by people in banks, the migration of people from the state would have stopped to some extent.

  1. Poor Health Services and Education system of Uttar Pradesh

AIPF believes, “During the Corona pandemic, the health system of the government has been exposed. At the same time, it became clear that the condition of government hospitals is very bad and private hospitals are also unable to provide better medical facilities. If there was oxygen in the state, many lives could have been saved. Health budget of Rs. 40,991 crores (6.67 per cent) share of budget is in Uttar Pradesh’s 2022-23. According to NITI Aayog, Kerala ranks first, Bihar 18th and Uttar Pradesh is at number 19 in Health Services.”

Same is the condition of education. Due to the weakness of primary schools, English medium schools are being opened in every village. In the higher education sector too, there is a glut of private management schools and colleges.” Rs. 75,165 crores (12.2 percent budget share) is for education in Uttar Pradesh’s 2022-23 budget. This is less than the average allocation for education by all other states (15.2 per cent).

  1. Gagged Democracy

The booklet has told through its basic figures as to why UP is lagging? The biggest reason for its backwardness is the politics of discrimination and the attack on the fourth pillar. Economic policy after 1990 has weakened democratic institutions, the bureaucracy became more powerful, the scope of democratic rights narrowed. Apart from sugar mills, cement industry etc. were sold to capitalists at throwaway prices by taking huge commissions. As a result, democratic rights went on eroding. The situation has worsened after the year 2017. At present, every possible effort of the government is to make the citizens obedient, to spread communal poison in the society and to develop an administrative culture of ‘thok do’ instead of the rule of law.

Political activities are being stalled to stay in the chair. There is a ban on peaceful dharna, demonstrations, yatras and conferences on one pretext or the other. The basic elements of the constitution are justice, social, economic, and political rights. It has become unconstitutional in the eyes of the government to take initiative against communal politics. Democracy has become the biggest victim of anti-people repressive policies.. Strict laws have been made to keep people away from political and social work. The biggest example of this is Uttar Pradesh Public and Private Property Damage Recovery Act 2020.

The booklet says that if you are critical of the government, you can be arrested and jailed for months under section 120B 0f IPC as an accused of conspiracy to instigate an agitation, even if you are not involved in any agitation. Physical abuse and public defamation as well as confiscation of your property can be done under this recovery act.

This is a new weapon of suppression of movement in independent India. Citizens are generally afraid of this type of law which is affecting their political social activities. There is widespread misuse of black laws like NSA, Goonda and Gangster Act.  Inclusive development can be guaranteed in the state only by strengthening democratic institutions and protecting civil rights.

  1. Falling Production

According to the survey report, “The manufacturing sector’s share in UP’s GDP is about 25 percent, which was about 28 percent in previous years. There has been a tremendous decline in the share of this sector. UP ranks first in the country in micro, small and medium units. About 11 crore people have got employment in the country, of which 1.65 crore people are from UP. The Micro, Small and Medium (MSME) sector is second only to the agriculture sector in providing employment. At the national level, the MSME sector contributes 8 percent to the GDP and 45 percent in manufacturing production and 40 percent in exports. Under the policy of revitalization and strengthening of MSME units, a loan of 2,53,402 crores was given by the UP government in the period 2017-22. This sector is still in a troubled state.”

  1. What needs to be done?

AIPF has concluded that the government should first change the direction of economic development. Six lakh vacant posts in the state should be filled immediately and the government should guarantee jobs for the unemployed. Agriculture, micro, small and medium industries should be promoted. There should be a guarantee for the purchase of farmers’ crops at the minimum support price. Storage should be developed for the storage of vegetables and employment should be generated.

The GST should be reduced on certain items, there should be proper regulation of e-commerce business and diesel-petrol should be brought under the purview of GST. Pay scales should be given to contract labourers and honorarium workers. The old pension system should be restored. If the expenditure on Health and Education is increased then only the stagnant economy can pick up speed. Social political activities should not be banned and the black laws like Uttar Pradesh Public and Private Property Damage Recovery Act 2020 should be repealed. Misuse of Section 120B of IPC, NSA, Gangster and Goonda Act should be stopped. Rashtriya Swayamsevak Sangh and BJP should stop dividing the society based on communalism and do not destroy the centuries old fraternity between people. In a democratic environment, UP can develop its inherent capabilities and play a leading role in the country in every field.

SR Darapuri, National President, All India Peoples Front

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