- UP’s New FDI Policy 2023 seeks to attract Fortune 500 companies, bolster economic growth
By Our Correspondent
Lucknow: In a strategic move aimed at attracting Foreign Direct Investment (FDI) and positioning Uttar Pradesh as the premier investment destination in the country, the Yogi government is set to participate in the World Economic Forum (WEF) 2023 in Davos, Switzerland.
A high-powered delegation, comprising Industrial Development Minister Nand Gopal Nandi, Finance Minister Suresh Kumar Khanna, Infrastructure and Industrial Development Commissioner (IIDC) Manoj Kumar Singh, and CM Secretary Amit Singh, will represent the state during the WEF event scheduled to take place from January 15 to 19 next year.
The Yogi government, spearheading Uttar Pradesh’s progress, is swiftly working towards achieving a ‘one trillion dollar economy’ by 2027, in alignment with CM Yogi Adityanath’s vision. In pursuit of this goal, the government is not only fostering entrepreneurship but also actively seeking the attention of global industry leaders.
Emphasizing the state as the most attractive investment destination in the country, the Yogi government has recently unveiled a new Foreign Direct Investment (FDI) scheme. This initiative is specifically designed to bolster investments from Fortune-500 companies on the global stage. Notably, 14 Fortune-500 listed companies have a presence in the state. Now extensive efforts are being made in Uttar Pradesh to increase this number.
Emphasis on increasing economy through FDI in Uttar Pradesh
Recently, Japan’s Fuji Silvertech Concrete Pvt Ltd became the first company to make a planned investment of more than Rs 1 billion after the implementation of the new FDI policy. Fuji Silvertech has been allotted 20 acres of land at 75 per cent concessional rates in Sector-32 of Yamuna Expressway Industrial development Authority (YEIDA) region to set up manufacturing facilities. This location is near the upcoming Noida International Airport (Jewar).
Another noteworthy Fortune 500 company, Sify Infinit Space, is anticipated to receive subsidized land for the establishment of a data center in Sector-28. Concurrently, during the upcoming World Economic Forum in Davos, Switzerland, CM Yogi’s delegation is set to engage with leaders of Fortune 500 companies, seeking extensive investments in the state through FDI.
Simultaneously, the Yogi government is diligently working towards showcasing the comprehensive economic landscape of Uttar Pradesh on various global platforms. To intensify these efforts, a proactive contact and coordination approach is being adopted, ensuring a robust presence in global economic forums. The aim is to encourage global industry leaders to consider substantial investments in the state.
Great success is being achieved in attracting foreign investment
Uttar Pradesh has made remarkable strides in attracting foreign investment in recent years, experiencing a substantial increase compared to the preceding years. Between 2019 and 2023, the state witnessed nearly four times more foreign investment than in the 17-year span from 2001 to 2017.
According to data from the Department for Promotion of Industry and Internal Trade and the Reserve Bank of India, the influx of foreign investment in Uttar Pradesh was a mere Rs 3,000 crore from 2000 to 2017. In contrast, direct investment surged to approximately Rs 11,000 crore between 2019 and June 2023.
Notably, Uttar Pradesh secured the 11th position in the FDI rankings among Indian states from October 2019 to June 2023. States ahead of Uttar Pradesh include Maharashtra, Karnataka, Gujarat, Delhi, Tamil Nadu, Haryana, Telangana, Jharkhand, Rajasthan, and West Bengal. Uttar Pradesh surpassed 22 other states, including Punjab, Andhra Pradesh, Kerala, Madhya Pradesh, Himachal Pradesh, Bihar, Chandigarh, Goa, and Chhattisgarh.
Looking at this economic growth, Uttar Pradesh will soon be included in the top 10 states of the country. However, this was only 0.7 percent of the total FDI that came into the country. Foreign investment was Rs 679 crore in 2014-15, Rs 524 crore in 2015-16 and Rs 50 crore in 2016-17. Recognizing the pivotal role of FDI in achieving its target of a one trillion dollar economy, Uttar Pradesh continues to prioritize and focus on attracting foreign investments to bridge this economic gap.
