How Uttar Pradesh became India's new business magnet, overtaking Bengal

In News:“How Uttar Pradesh became India's new business magnet, overtaking Bengal”

Analysis:

1. Rise in Active Companies:
   • Uttar Pradesh now has 145,009 active companies, surpassing West Bengal.
   • Added 28,649 new companies in the last 1.5 years, second only to Maharashtra.
2. Consumer Market Advantage:
   • Population of over 24 crore, largest in India, providing a vast domestic market.
   • Predominantly working-age population (~55–56%), boosting demand for goods and services.
3. Policy and Governance:
   • Sector-specific policies in food processing, handlooms, electronics, tourism, solar energy, and pharmaceuticals.
   • Financial incentives and subsidies for MSMEs and startups, improving ease of doing business.
4. Diversified Economy:
   • Shift from traditional agrarian base to consumer electronics, IT, defence production, and startup ecosystems.
   • Supports a robust entrepreneurial environment.
5. Comparative Advantage Over West Bengal:
   • Fewer closures in UP (52,603 vs 94,039 in West Bengal).
   • Indicates better regulatory enforcement, business sustainability, and investor confidence.
6. Strategic Implications:
   • Demonstrates how population size, governance, infrastructure, and economic diversification influence regional business growth.
     
     Updated - Oct 30 2024 | 11:32 AM | Business Standard