Uttar Pradesh betting big on drawing FDI investments across manufacturing, retail, hospitality and renewable energy sectors, to hold Conclave on FDI on 20th February
Uttar Pradesh, which is betting big on foreign direct investments (FDI) to grow the state’s economy to close to $ 1 trillion, is hopeful of receiving expression of interest from overseas investors across sectors including retail, hospitality, renewables and clean energy among others at the ground breaking ceremony (GBC 4.0).
The three-day GBC 4.0, which is set to begin on February 19, will see participation from renowned global industrialists including M.A Yusuf Ali, Chairman & Managing Director, LuLu Group; Major General Sharafuddin Sharaf, Vice Chairman, Sharaf Group; Benoit Renard, Managing Director, Air Liquide; AK Chalamalasetty, Founder, Greenko Group and Carmelo Ezpeleta, Chief Executive Officer, Dorna among others, an official spokesperson said.
The “Conclave UP – Emerging destination for foreign investments in India” will highlight some of the key initiatives undertaken by the state government to encourage foreign investments into the State and the progress made so far. Senior officials and ministers from infrastructure and industry departments will highlight the key strides taken by the State in improving ease of business and other incentives being provided to overseas investors. A booklet on “UP – Emerging Destination for Foreign Investments in India” will be launched at the event followed by an address by the Union Commerce and Industry Minister, Piyush Goyal.
Chief Minister Yogi Adityanath is also likely to draw attention to the State’s preparedness and potential for drawing FDI investments.
Interestingly, Uttar Pradesh has emerged as a hotbed for FDI in recent years and has experienced a remarkable upswing in foreign capital inflow. Data from the Department for Promotion of Industry and Internal Trade (DPIIT) and the Reserve Bank of India (RBI) reveals that the State has witnessed an astonishing four-fold increase in FDI between 2019 and June 2023, compared to the 17-year period from 2000 to 2017. It currently ranks at the 11th position in attracting FDI in India with Rs 3372.72 crore FDI equity inflow during the period 2019-23.
The State is home to 14 Fortune Global 500 companies including Samsung, Microsoft, LG, Pepsico, Barclays, Nayara Energy, Reliance Industries Limited, Hindustan Unilever Limited, Haier, Ikea, Air Liquide. TATA and Denso. The state government has received investment proposals worth $400 billion during the recently concluded UP Global Investors’ Summit 2023.
The meteoric rise in FDI can be attributed to Uttar Pradesh’s conducive business environment, bolstered by low crime rate, political stability, and pro-industry policies. These factors have made the State an attractive destination for foreign investors, particularly from multinational corporations.
The surge in FDI has been particularly pronounced in key sectors including computer software & hardware, mobile phone & technology, manufacturing sector, automobile, pharma, trading, chemical, energy and metal sector.
FDI in manufacturing
Uttar Pradesh, which is eyeing to grow its economy to close to $1 trillion in the coming years, acknowledges the need to substantially increase the contribution of manufacturing sector to the domestic gross product, and take it up to close to 50 per cent from the current levels of around 25 per cent and the role that FDI can play in growing the manufacturing sector.
The state government realises that it is imperative that prominent foreign corporations invest in the state’s manufacturing sector. The State had, in October last year introduced the new foreign direct investment policy to provide incentives to overseas investors, including exemptions in land acquisition, stamp duty, and capital investment. The measures are likely to strengthen the confidence of overseas investors and bring in more investment proposals in the near future, the official said.
